Egyptair news 6 july 2016

53

description

This is The most important daily news about civil aviation and airports .. Published by PUBLIC RELATIONS Of EGYPTAIR Holding CO.

Transcript of Egyptair news 6 july 2016

Page 1: Egyptair news 6 july 2016

كل عام و انتم بخير االربعاء

2016يوليو 6

httparabiccnncom

أخبر مصدر رفع المستوى --(CNN)أتالنتا الوالات المتحدة األمركة

الثالثاء أن مسجل صوت قمرة القادة CNNبشركة مصر للطران شبكة

شر إلى محاولة إلخماد حرق على متن الطائرة MS804من رحلة

شخصا القوا جمعا قبل تحطمها ف البحر المتوسط وعلى متنها

آار الماض مصرعهم ف ماو

لجنة التحقق بتحطم طائرة مصر للطران تعلن عدم تضرر أجزاء اقرأ

ذاكرة مسجل محادثات قمرة القادة

وأكد المصدر أن التسجالت من مسجل صوت قمرة القادة تتوافق مع

البانات المستخرجة من األجهزة األخرى بالطائرة الت أشارت إلى وجود

دخان ف الطائرة

شاهد ما ه الرواات والسناروهات المتضاربة عما حدث لطائرة مصر

MS804للطران

قد حصلت ف الوم التال من اختفاء الطائرة على CNNوكانت شبكة

وثقة تكشؾ رصد إنذار بالدخان على متن رحلة طائرة مصر للطران رقم

MS804 ف الدقائق األخرة الت سبقت اختفاء الطائرة من على

شاشات الرادار خالل رحلتها من بارس إلى القاهرة

حصلت على وثقة تكشؾ رصد إنذار بالدخان على متن CNNأضا

طائرة مصر للطران ف الدقائق األخرة

httpwwwinnfradcom

مسجل القمرة وضح محاوالت إلخماد روترز تفاصل جددة حول سقوط طائرة مصر للطران المنكوبة

بدء تفرػ صندوق مسجل محادثات لجنة التحقق والعمل اإلرهابى فرضة مطروحة حرق قبل تحطمها

الكابنة

ال زال لؽز سقوط طائرة مصر للطران بالبحر المتوسط فى ماو الماضى بعد إقالعها

لكن الوم الثالثاء من مطار شارل دجول فى فرنسا متجهة إلى القاهرة مجهول

مصادر بلجنة التحقق فى الحادث قالت إن مسجل قمرة الطائرة أوضح حدوث حرق

ومحاوالت إلخماده وهو ما توافق مع البانات األولة التى تم التوصل إلها

فى البحر المتوسط فى طرق ( إه )وهوت الطائرة وهى من نوع إرباص

شخصا هم كل من كانوا على ماو وقتل 9عودتها من بارس إلى القاهرة فى

وال زال سبب الحادث مجهوال متنها

ونو الماضى إن البانات 9وكانت لجنة التحقق قالت فى بان صدر وم

مع رسائل نظم التواصل واإلبالغ تتوافق المستخلصة من مسجل بانات الرحلة

مع الطائرة والتى تشر إلى وجود دخان فى دورة الماه ودخان صادر من ؼرفة

وقالت المصادر الوم الثالثاء إن كل الفرضات األجهزة اإللكترونة للطائرة

مطروحة كأسباب لسقوط الطائرة ومن بنها فرضة العمل اإلرهابى خاصة مشرة إلى

أن من النادر حدوث حرق كبر بشكل مفاجىء مثلما توضح كل المعلومات

والمؤشرات

وأكدت مصادر بقطاع الطران المدنى أن لجنة التحقق فى حادث سقوط الطائرة

المصرة المنكوبة بدأت تفرػ الصندوق الخاص بالتسجالت الصوتة الدائرة داخل

كابنة القادة فى معامل وزارة الطران المدنى وذلك بعد اتمام عملة اإلصالح

بالمعامل الفرنسة

1

وأشارت المصادر إلى أن هناك فارق بن التفرػ واالستماع والتحلل التفرػ

عنى تفرػ محتوات التسجالت وهى النصؾ ساعة األخرة من المحادثات التى

دارت داخل كابنة القادة بن الكابتن ومساعده وكافة األصوات التى سمعت

داخل كابنة القادة أو أى محادثات دارت بن الطاقم وبرج المراقبة وهل ظهر

شىء مرب كصوت فرقعة واضح أو ما شر إلى وجود حرق على الطائرة

وأضافت المصادر أنه بعد ذلك تأتى المرحلة الثانة وهى تحلل التسجالت ومعرفة

األصوات وتحدد أصحابها والتفرقة بن كالم الكابتن ومساعده أو أى أصوات

أخرى وإذا ظهر صوت فرقعة تم تحلله لمعرفة إذا كان تفجر أم أنشطار ألجزاء

ا وأجراء مطابقة بن صندوق من الطائرة وإذا كان ؼر واضح تم تحلله طف

وقالت المصادر تم إصالح البانات والتسجالت لمعرفة تطابق كالهما معا

الصندوقن بالمعامل الفرنسة التى نجحت فى معالجة التلؾ بذاكرة التسجالت

الناتجة عن مكوث الصندوق لفترة طولة تحت الماء بنما لم ستؽرق اصالح

صندوق البانات فترة طولة

Lethbridgeوكانت اللجنة قد أعلنت األام الماضة عن أن السفنة John

المؤجرة من الحكومة المصرة قامت بانتشال جمع الرفات البشرة التى قد تم

من خالل خبراء الطب الشرعى A320تحدد مكانها بموقع حادث سقوط الطائرة

وأضافت اللجنة فى بان لها المصرى والفرنسى المتواجدون على متن السفنة

ؼادرت السفنة موقع الحادث الى مناء اإلسكندرة حث ستم تسلم ماتم

انتشاله من أشالء ورفات بشرة الى مسئولى النابة العامة وممثلى مصلحة الطب

الشرعى المصرى وذلك بحضور أعضاء لجنة التحقق الفنى بالحادث لتم على

الفور نقل األشالء إلى مصلحة الطب الشرعى بالقاهرة للبدء فى عمل تحلل الـ

DNA واستكمال اإلجراءات المتبعة فى هذا الشأن

2

أام راكبا من البحرن إلى القاهرة فى نقلنا مصر للطران

httpwwwyoum7com

قال صفوت مسلم رئس الشركة القابضة لمصر للطران إن الشركة نقلت

ولو وحتى رحلة إضافة من البحرن فى الفترة من مصرا على متن

الجارى لعودة المدرسن العاملن بدولة البحرن إلى أرض الوطن لقضاء عطلة العد

رحالت وما باإلضافة إلى الرحلة وأجازة نهاة العام الدراسى حث تم تسر

أنه من المقرر بدء المرحلة الثانة لعودة المدرسن إلى مسلموأضاؾ الومة

جدر بالذكر أن الشركة حرصت سبتمبر القادم وحتى البحرن فى الفترة من

ة وحتى نهاة الموسم الصفى على تشؽل رحالت إضافة وتكبر خالل الفترة الحال

طرازاتها إلى عدد من دول الخلج العربى مثل اإلمارات والكوت والسعودة وقطر

وؼرها الستعاب أكبر عدد ممكن من الركاب سواء الزائرن األشقاء من الدول

العربة وكذلك لعودة المصرن العاملن بالخارج إلى مصر خالل فترة اإلجازات

ونظرا إللؽاء العمل بالتوقت الصفى الذى كان مقرر تطبقه اعتبارا من فجر وم

ولو أهابت مصر للطران بالسادة عمالئها الكرام سرعة مراجعة مواعد 8الجمعة

إقالع رحالتهم المدونة على تذاكر السفر عن طرق الموقع اإللكترونى

egyptaircom من أى محمول أو 77أو مركز الخدمة التلفونة

وكذلك ضرورة من أى تلفون أرضى أو وكالء الساحة والسفر 97

ساعات على األقل وساعتن التواجد بالمطار قبل مواعد إقالع الرحالت الدولة بـ

للرحالت الداخلة

كتب أحمد حمادة

httpwwwvetogatecom

انتظام حركة المالحة الجوة لرحالت مصر للطران بمطار القاهرة

شهد مطار القاهرة الدولى الوم الثالثاء انتظام حركة المالحة

الجوة لرحالت شركة مصر للطران والمتجهة من وإل العواصم

األوروبة والعربة

وصرحت مصادر مالحة بمطار القاهرة أن جمع رحالت شركة

مصر للطران أقلعت ف المواعد المحددة لها من قبل الشركة وفقا

لجدول التشؽل وأن الشركة لموسى أي تأخرات

وكان مطار القاهرة الدول قد شهد صباح الوم الثالثاء إلؽاء

رحالت دولة تابعة للخطوط اإلطالة والتونسة والسودانة

وشركت المصرة العالمة للطران وخطوط شركة نسمة للطران

بسبب عدم جدواها اقتصادا وقلة عدد الركاب

httpmalwafdorg

شد بجهود العاملن بالخدمات الجوة صفوت مسلم

أكد صفوت مسلم رئيس الشركة القابضة مصر للطيران أنه تم تأجير

محطة تكييف مركزى من كبرى الشركات العالمية للتكيف من النوعية

نفسها الموجودة بالخدمات الجوية حرصا على استمرار العمل بعد أن

احترقت كروت وحدة التكييف المركزى بالشركة

وأضاف مسلم في تصريحات صحفية اليوم الثالثاء أن أسباب حريق

وحدة التكييف المركزى مرجح ان تكون بسبب شدة التيار الكهربائي بشكل

مفاجئ وجار التحقيق لمعرفة األسباب الحقيقية وراء احتراق كروت وحدة

التكييف

وأشار إلى أن محطة التكييف المركزى المؤجرة لمدة أسبوع واحد فقط

وصلت من اإلسكندرية على شاحنات ضخمة حتى يتم إصالح المحطة

مليون جنيه نظرا ألنها من أحدث محطات 12األساسية التى تقدر قيمتها بـ

التكييف العالميه وتم استيراد كروت إضافية لتالفى حدوث المشكلة مرة

أخرى

وأشاد صفوت بجهود العاملين بالخدمات الجوية فى العمل بمطابخ تصل

درجة مئوية حرصا على استمرار سير 40درجة حرارتها إلى أكثر من

العمل وتقديم الوجبات على الطائرات فى مواعيدها

httpwwwiataorg

India Sees Highest Domestic Market Growth in 2015

Montreal - The International Air Transport Association (IATA)

announced industry performance statistics for 2015 showing

that among the worldrsquos largest domestic markets India had the

fastest domestic passenger growth in 2015 With annual growth

of 188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

India Sees Highest Domestic Market Growth in 2015

The International Air Transport Association (IATA) announced

industry performance statistics for 2015 showing that among

the worldrsquos largest domestic markets India had the fastest

domestic passenger growth in 2015 With annual growth of

188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

ICAO Secretary General Partnership and Investment Crucial to

Sustainable Aviation Development in Africa

Significant contributions towards safe and secure air transport and the prosperity

and sustainability of African communities could be achieved if sufficient investment

is made towards the development of Africarsquos civil aviation capacities including

infrastructure and skilled human resources remarked ICAOrsquos Secretary General

during the Third ICAO Africa and Indian Ocean (AFI) Aviation Week in Malabo

Equatorial Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos greatest examples

today of what cooperation and commitment can deliver in terms of concrete civil

aviation progress Dr Liu highlighted ―ICAO has been working very hard to foster

this type of cooperation in every world region and we are tremendously grateful that

these comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial Guinea at the

African Union Conference Center in Malabo The wide ranging series of events

convened included the Third Africa-Indian Ocean (AFI) Aviation Safety and Security

Symposium the Second Human Resources Development Fund (HRDF) for Africa

Meeting the Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third Comprehensive

Regional Implementation Plan for Aviation Security and Facilitation in Africa (AFI

SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking stock of the

progress and status of regional safety targets set by the African Ministers of

Transport in 2012 Respective participants also reviewed the status of implementation

of ongoing initiatives and plans guiding effective cooperation on aviation safety

security and human resources development discussed the related outcomes from

recent African high-level meetings and Declarations and heard proposals on how the

specific work programmes under each area could be further improved in light of

latest data and developments

1

―The successful implementation of current Safety and Security priorities are

directly linked to States having the necessary human resources at their

disposal inclusive of the required qualifications competencies and experience

to address their responsibilities Dr Liu noted ―These issues are particularly

crucial for African States which are now experiencing significant traffic growth

whether due to increased international or domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable ICAOrsquos

many partnerships on the African continent have been to the achievement of

practical and sustainable civil aviation development commenting that ―in

supporting African States to meet their obligations under the Chicago

Convention the African Union Commission and the AU specialized agency the

African Civil Aviation Commission (AFCAC) as well as Regional Economic

Communities are sparing no effort as we continue to jointly assist national

governments in meeting global and regional targets in line with ICAOrsquos

Strategic Objectives Their support and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved level

of compliance with ICAOrsquos Standards and Recommended Practices )SARPs(

―We are seeing an increasing number of States with ICAO Universal Safety

Oversight Audit Programme Effective Implementation rates over 60 percent

and a diminishing number of outstanding Significant Safety Concerns These

are indeed very positive trends but they must continue to be improved upon

Dr Liu said

Since taking office Secretary General Liu has been advocating tirelessly with

ICAO Member States UN system agencies the donor community and all

relevant stakeholders on aviationrsquos relationship to successful sustainable

development planning and the attainment of the United Nations Agenda 2030

Sustainable Development Goals ―Effectively resourced and administered civil

aviation systems in States are essential to establishing air transportrsquos global

connectivity which in turn serves as a key catalyst for sustainable economic

and social development she commented adding that a fundamental

prerequisite for gaining access to air transportrsquos global connectivity and

opening up access to international markets and trade flows is a safe and secure

air transport system through effectively implementing SARPs and policies

2

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO assistance

activities aimed at improving safety and security oversight The occasion

was also used to release the Second Edition of the Annual Safety Report

of the RASG-AFI signing of the project document for membership of the

African Flight Procedure Programmes (AFPP) by two States aimed at

fostering PBN implementation and of an ICAO Technical Cooperation

Bureau project agreement on safety and security assistance with

Equatorial Guinea

ICAOrsquos 2016 AFI Aviation Week attracted over 200 participants from 35

States and 25 international and regional organizations

3

httpwwwatnaero

STAR ALLIANCE ROLLS OUT NEW CHECK-IN CONCEPT

AT TOKYO ndash NARITA AIRPORT TERMINAL 1Star Alliance has successfully completed the rollout of a new check-in

concept in the south wing at Tokyo ndash Narita Terminal 1 offering

customers a wider choice of check-in options and giving them more

control over this part of the travel process thereby creating time savings

To achieve this the layout of the check-in area was changed and

travellers will now find the check-in desks allocated by airline rather than

class of travel as was previously the case in Narita

This revised layout goes hand in hand with the installation of new self-

service check-in machines which in addition to issuing boarding passes

also print baggage tags This makes Star Alliance the first airline alliance

to offer international travellers from Japan the option of self-printing and

self-tagging

―Our initiative in Narita is part of our global strategy of reducing

operational complexities and striving for standardisation with the aim of

providing customers with a better travel experience said Mark Schwab

CEO Star Alliance ―Initial statistics show that the majority of travellers

are already making use of the new self-service option he continued

The 116 new common use kiosks form the backbone of the new concept

at Narita These allow customers to check-in for any of the 17 member

carriers - Air Canada Air China Air New Zealand ANA Austrian Asiana

Airlines Ethiopian Airlines EVA Air LOT Polish Airlines Lufthansa

Scandinavian Airlines Shenzhen Airlines Singapore Airlines SWISS

Turkish Airlines THAI and United - flying from Terminal 1 Passengers

with hand luggage only can proceed directly to the gate while those with

checked luggage can obtain the corresponding tag from the kiosk apply

it and then proceed to special baggage drop-off counters At present

three member airlines offer bag tag printing with the remaining 14

scheduled to do so by mid-July Full service check-in desks for First

Business and Star Alliance Gold customers as well as for Economy Class

passengers requiring additional support complete the offer

Currently 18 Star Alliance member carriers serve Narita providing

passengers the choice of 1300 weekly flights to 61 destinations in 24

countries

1

The changes implemented at Narita were driven by a combination of

reasons In terms of capacity with both the number of Star Alliance

carriers serving Narita and the passenger volume increasing additional

check-in space would have been needed This made the airport an ideal

location for implementing a new concept based on the experience

obtained during the London Heathrow Terminal 2 project There the

Alliance has succeeded in reducing the required check-in space by 20

as a result of the new check-in concept

In addition to Narita Star Alliance has made changes to the check-in

concept at Satildeo Paulo ndash Guarulhos and Los Angeles Tom Bradley

International Terminal based on the experience the Alliance made during

the Terminal 2 project at London ndash Heathrow Airport where a completely

new check-in concept was put into place There all Star Alliance member

airlines use the same check-in kiosks make use of common bag-drop

counters and even share Economy Class check-in desks Using the

success of the Terminal 2 project as a base the Alliance is enhancing the

customer experience at other airports around the globe implementing

various technological advances made in London In addition at a Chief

Executive Board Meeting held earlier this month in Zurich the member

carrier CEOs agreed to develop standardised processes for airport

passenger services covering off-airport and self-service check-in fast

bag drop technology at airports baggage self-tagging and automated

travel document validation As these standards are implemented these

will not only provide smoother service to the Alliancersquos customers but

also reduce infrastructure requirements and handling costs at all of the

1300 airports the Alliance is presently serving

2

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 2: Egyptair news 6 july 2016

httparabiccnncom

أخبر مصدر رفع المستوى --(CNN)أتالنتا الوالات المتحدة األمركة

الثالثاء أن مسجل صوت قمرة القادة CNNبشركة مصر للطران شبكة

شر إلى محاولة إلخماد حرق على متن الطائرة MS804من رحلة

شخصا القوا جمعا قبل تحطمها ف البحر المتوسط وعلى متنها

آار الماض مصرعهم ف ماو

لجنة التحقق بتحطم طائرة مصر للطران تعلن عدم تضرر أجزاء اقرأ

ذاكرة مسجل محادثات قمرة القادة

وأكد المصدر أن التسجالت من مسجل صوت قمرة القادة تتوافق مع

البانات المستخرجة من األجهزة األخرى بالطائرة الت أشارت إلى وجود

دخان ف الطائرة

شاهد ما ه الرواات والسناروهات المتضاربة عما حدث لطائرة مصر

MS804للطران

قد حصلت ف الوم التال من اختفاء الطائرة على CNNوكانت شبكة

وثقة تكشؾ رصد إنذار بالدخان على متن رحلة طائرة مصر للطران رقم

MS804 ف الدقائق األخرة الت سبقت اختفاء الطائرة من على

شاشات الرادار خالل رحلتها من بارس إلى القاهرة

حصلت على وثقة تكشؾ رصد إنذار بالدخان على متن CNNأضا

طائرة مصر للطران ف الدقائق األخرة

httpwwwinnfradcom

مسجل القمرة وضح محاوالت إلخماد روترز تفاصل جددة حول سقوط طائرة مصر للطران المنكوبة

بدء تفرػ صندوق مسجل محادثات لجنة التحقق والعمل اإلرهابى فرضة مطروحة حرق قبل تحطمها

الكابنة

ال زال لؽز سقوط طائرة مصر للطران بالبحر المتوسط فى ماو الماضى بعد إقالعها

لكن الوم الثالثاء من مطار شارل دجول فى فرنسا متجهة إلى القاهرة مجهول

مصادر بلجنة التحقق فى الحادث قالت إن مسجل قمرة الطائرة أوضح حدوث حرق

ومحاوالت إلخماده وهو ما توافق مع البانات األولة التى تم التوصل إلها

فى البحر المتوسط فى طرق ( إه )وهوت الطائرة وهى من نوع إرباص

شخصا هم كل من كانوا على ماو وقتل 9عودتها من بارس إلى القاهرة فى

وال زال سبب الحادث مجهوال متنها

ونو الماضى إن البانات 9وكانت لجنة التحقق قالت فى بان صدر وم

مع رسائل نظم التواصل واإلبالغ تتوافق المستخلصة من مسجل بانات الرحلة

مع الطائرة والتى تشر إلى وجود دخان فى دورة الماه ودخان صادر من ؼرفة

وقالت المصادر الوم الثالثاء إن كل الفرضات األجهزة اإللكترونة للطائرة

مطروحة كأسباب لسقوط الطائرة ومن بنها فرضة العمل اإلرهابى خاصة مشرة إلى

أن من النادر حدوث حرق كبر بشكل مفاجىء مثلما توضح كل المعلومات

والمؤشرات

وأكدت مصادر بقطاع الطران المدنى أن لجنة التحقق فى حادث سقوط الطائرة

المصرة المنكوبة بدأت تفرػ الصندوق الخاص بالتسجالت الصوتة الدائرة داخل

كابنة القادة فى معامل وزارة الطران المدنى وذلك بعد اتمام عملة اإلصالح

بالمعامل الفرنسة

1

وأشارت المصادر إلى أن هناك فارق بن التفرػ واالستماع والتحلل التفرػ

عنى تفرػ محتوات التسجالت وهى النصؾ ساعة األخرة من المحادثات التى

دارت داخل كابنة القادة بن الكابتن ومساعده وكافة األصوات التى سمعت

داخل كابنة القادة أو أى محادثات دارت بن الطاقم وبرج المراقبة وهل ظهر

شىء مرب كصوت فرقعة واضح أو ما شر إلى وجود حرق على الطائرة

وأضافت المصادر أنه بعد ذلك تأتى المرحلة الثانة وهى تحلل التسجالت ومعرفة

األصوات وتحدد أصحابها والتفرقة بن كالم الكابتن ومساعده أو أى أصوات

أخرى وإذا ظهر صوت فرقعة تم تحلله لمعرفة إذا كان تفجر أم أنشطار ألجزاء

ا وأجراء مطابقة بن صندوق من الطائرة وإذا كان ؼر واضح تم تحلله طف

وقالت المصادر تم إصالح البانات والتسجالت لمعرفة تطابق كالهما معا

الصندوقن بالمعامل الفرنسة التى نجحت فى معالجة التلؾ بذاكرة التسجالت

الناتجة عن مكوث الصندوق لفترة طولة تحت الماء بنما لم ستؽرق اصالح

صندوق البانات فترة طولة

Lethbridgeوكانت اللجنة قد أعلنت األام الماضة عن أن السفنة John

المؤجرة من الحكومة المصرة قامت بانتشال جمع الرفات البشرة التى قد تم

من خالل خبراء الطب الشرعى A320تحدد مكانها بموقع حادث سقوط الطائرة

وأضافت اللجنة فى بان لها المصرى والفرنسى المتواجدون على متن السفنة

ؼادرت السفنة موقع الحادث الى مناء اإلسكندرة حث ستم تسلم ماتم

انتشاله من أشالء ورفات بشرة الى مسئولى النابة العامة وممثلى مصلحة الطب

الشرعى المصرى وذلك بحضور أعضاء لجنة التحقق الفنى بالحادث لتم على

الفور نقل األشالء إلى مصلحة الطب الشرعى بالقاهرة للبدء فى عمل تحلل الـ

DNA واستكمال اإلجراءات المتبعة فى هذا الشأن

2

أام راكبا من البحرن إلى القاهرة فى نقلنا مصر للطران

httpwwwyoum7com

قال صفوت مسلم رئس الشركة القابضة لمصر للطران إن الشركة نقلت

ولو وحتى رحلة إضافة من البحرن فى الفترة من مصرا على متن

الجارى لعودة المدرسن العاملن بدولة البحرن إلى أرض الوطن لقضاء عطلة العد

رحالت وما باإلضافة إلى الرحلة وأجازة نهاة العام الدراسى حث تم تسر

أنه من المقرر بدء المرحلة الثانة لعودة المدرسن إلى مسلموأضاؾ الومة

جدر بالذكر أن الشركة حرصت سبتمبر القادم وحتى البحرن فى الفترة من

ة وحتى نهاة الموسم الصفى على تشؽل رحالت إضافة وتكبر خالل الفترة الحال

طرازاتها إلى عدد من دول الخلج العربى مثل اإلمارات والكوت والسعودة وقطر

وؼرها الستعاب أكبر عدد ممكن من الركاب سواء الزائرن األشقاء من الدول

العربة وكذلك لعودة المصرن العاملن بالخارج إلى مصر خالل فترة اإلجازات

ونظرا إللؽاء العمل بالتوقت الصفى الذى كان مقرر تطبقه اعتبارا من فجر وم

ولو أهابت مصر للطران بالسادة عمالئها الكرام سرعة مراجعة مواعد 8الجمعة

إقالع رحالتهم المدونة على تذاكر السفر عن طرق الموقع اإللكترونى

egyptaircom من أى محمول أو 77أو مركز الخدمة التلفونة

وكذلك ضرورة من أى تلفون أرضى أو وكالء الساحة والسفر 97

ساعات على األقل وساعتن التواجد بالمطار قبل مواعد إقالع الرحالت الدولة بـ

للرحالت الداخلة

كتب أحمد حمادة

httpwwwvetogatecom

انتظام حركة المالحة الجوة لرحالت مصر للطران بمطار القاهرة

شهد مطار القاهرة الدولى الوم الثالثاء انتظام حركة المالحة

الجوة لرحالت شركة مصر للطران والمتجهة من وإل العواصم

األوروبة والعربة

وصرحت مصادر مالحة بمطار القاهرة أن جمع رحالت شركة

مصر للطران أقلعت ف المواعد المحددة لها من قبل الشركة وفقا

لجدول التشؽل وأن الشركة لموسى أي تأخرات

وكان مطار القاهرة الدول قد شهد صباح الوم الثالثاء إلؽاء

رحالت دولة تابعة للخطوط اإلطالة والتونسة والسودانة

وشركت المصرة العالمة للطران وخطوط شركة نسمة للطران

بسبب عدم جدواها اقتصادا وقلة عدد الركاب

httpmalwafdorg

شد بجهود العاملن بالخدمات الجوة صفوت مسلم

أكد صفوت مسلم رئيس الشركة القابضة مصر للطيران أنه تم تأجير

محطة تكييف مركزى من كبرى الشركات العالمية للتكيف من النوعية

نفسها الموجودة بالخدمات الجوية حرصا على استمرار العمل بعد أن

احترقت كروت وحدة التكييف المركزى بالشركة

وأضاف مسلم في تصريحات صحفية اليوم الثالثاء أن أسباب حريق

وحدة التكييف المركزى مرجح ان تكون بسبب شدة التيار الكهربائي بشكل

مفاجئ وجار التحقيق لمعرفة األسباب الحقيقية وراء احتراق كروت وحدة

التكييف

وأشار إلى أن محطة التكييف المركزى المؤجرة لمدة أسبوع واحد فقط

وصلت من اإلسكندرية على شاحنات ضخمة حتى يتم إصالح المحطة

مليون جنيه نظرا ألنها من أحدث محطات 12األساسية التى تقدر قيمتها بـ

التكييف العالميه وتم استيراد كروت إضافية لتالفى حدوث المشكلة مرة

أخرى

وأشاد صفوت بجهود العاملين بالخدمات الجوية فى العمل بمطابخ تصل

درجة مئوية حرصا على استمرار سير 40درجة حرارتها إلى أكثر من

العمل وتقديم الوجبات على الطائرات فى مواعيدها

httpwwwiataorg

India Sees Highest Domestic Market Growth in 2015

Montreal - The International Air Transport Association (IATA)

announced industry performance statistics for 2015 showing

that among the worldrsquos largest domestic markets India had the

fastest domestic passenger growth in 2015 With annual growth

of 188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

India Sees Highest Domestic Market Growth in 2015

The International Air Transport Association (IATA) announced

industry performance statistics for 2015 showing that among

the worldrsquos largest domestic markets India had the fastest

domestic passenger growth in 2015 With annual growth of

188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

ICAO Secretary General Partnership and Investment Crucial to

Sustainable Aviation Development in Africa

Significant contributions towards safe and secure air transport and the prosperity

and sustainability of African communities could be achieved if sufficient investment

is made towards the development of Africarsquos civil aviation capacities including

infrastructure and skilled human resources remarked ICAOrsquos Secretary General

during the Third ICAO Africa and Indian Ocean (AFI) Aviation Week in Malabo

Equatorial Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos greatest examples

today of what cooperation and commitment can deliver in terms of concrete civil

aviation progress Dr Liu highlighted ―ICAO has been working very hard to foster

this type of cooperation in every world region and we are tremendously grateful that

these comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial Guinea at the

African Union Conference Center in Malabo The wide ranging series of events

convened included the Third Africa-Indian Ocean (AFI) Aviation Safety and Security

Symposium the Second Human Resources Development Fund (HRDF) for Africa

Meeting the Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third Comprehensive

Regional Implementation Plan for Aviation Security and Facilitation in Africa (AFI

SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking stock of the

progress and status of regional safety targets set by the African Ministers of

Transport in 2012 Respective participants also reviewed the status of implementation

of ongoing initiatives and plans guiding effective cooperation on aviation safety

security and human resources development discussed the related outcomes from

recent African high-level meetings and Declarations and heard proposals on how the

specific work programmes under each area could be further improved in light of

latest data and developments

1

―The successful implementation of current Safety and Security priorities are

directly linked to States having the necessary human resources at their

disposal inclusive of the required qualifications competencies and experience

to address their responsibilities Dr Liu noted ―These issues are particularly

crucial for African States which are now experiencing significant traffic growth

whether due to increased international or domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable ICAOrsquos

many partnerships on the African continent have been to the achievement of

practical and sustainable civil aviation development commenting that ―in

supporting African States to meet their obligations under the Chicago

Convention the African Union Commission and the AU specialized agency the

African Civil Aviation Commission (AFCAC) as well as Regional Economic

Communities are sparing no effort as we continue to jointly assist national

governments in meeting global and regional targets in line with ICAOrsquos

Strategic Objectives Their support and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved level

of compliance with ICAOrsquos Standards and Recommended Practices )SARPs(

―We are seeing an increasing number of States with ICAO Universal Safety

Oversight Audit Programme Effective Implementation rates over 60 percent

and a diminishing number of outstanding Significant Safety Concerns These

are indeed very positive trends but they must continue to be improved upon

Dr Liu said

Since taking office Secretary General Liu has been advocating tirelessly with

ICAO Member States UN system agencies the donor community and all

relevant stakeholders on aviationrsquos relationship to successful sustainable

development planning and the attainment of the United Nations Agenda 2030

Sustainable Development Goals ―Effectively resourced and administered civil

aviation systems in States are essential to establishing air transportrsquos global

connectivity which in turn serves as a key catalyst for sustainable economic

and social development she commented adding that a fundamental

prerequisite for gaining access to air transportrsquos global connectivity and

opening up access to international markets and trade flows is a safe and secure

air transport system through effectively implementing SARPs and policies

2

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO assistance

activities aimed at improving safety and security oversight The occasion

was also used to release the Second Edition of the Annual Safety Report

of the RASG-AFI signing of the project document for membership of the

African Flight Procedure Programmes (AFPP) by two States aimed at

fostering PBN implementation and of an ICAO Technical Cooperation

Bureau project agreement on safety and security assistance with

Equatorial Guinea

ICAOrsquos 2016 AFI Aviation Week attracted over 200 participants from 35

States and 25 international and regional organizations

3

httpwwwatnaero

STAR ALLIANCE ROLLS OUT NEW CHECK-IN CONCEPT

AT TOKYO ndash NARITA AIRPORT TERMINAL 1Star Alliance has successfully completed the rollout of a new check-in

concept in the south wing at Tokyo ndash Narita Terminal 1 offering

customers a wider choice of check-in options and giving them more

control over this part of the travel process thereby creating time savings

To achieve this the layout of the check-in area was changed and

travellers will now find the check-in desks allocated by airline rather than

class of travel as was previously the case in Narita

This revised layout goes hand in hand with the installation of new self-

service check-in machines which in addition to issuing boarding passes

also print baggage tags This makes Star Alliance the first airline alliance

to offer international travellers from Japan the option of self-printing and

self-tagging

―Our initiative in Narita is part of our global strategy of reducing

operational complexities and striving for standardisation with the aim of

providing customers with a better travel experience said Mark Schwab

CEO Star Alliance ―Initial statistics show that the majority of travellers

are already making use of the new self-service option he continued

The 116 new common use kiosks form the backbone of the new concept

at Narita These allow customers to check-in for any of the 17 member

carriers - Air Canada Air China Air New Zealand ANA Austrian Asiana

Airlines Ethiopian Airlines EVA Air LOT Polish Airlines Lufthansa

Scandinavian Airlines Shenzhen Airlines Singapore Airlines SWISS

Turkish Airlines THAI and United - flying from Terminal 1 Passengers

with hand luggage only can proceed directly to the gate while those with

checked luggage can obtain the corresponding tag from the kiosk apply

it and then proceed to special baggage drop-off counters At present

three member airlines offer bag tag printing with the remaining 14

scheduled to do so by mid-July Full service check-in desks for First

Business and Star Alliance Gold customers as well as for Economy Class

passengers requiring additional support complete the offer

Currently 18 Star Alliance member carriers serve Narita providing

passengers the choice of 1300 weekly flights to 61 destinations in 24

countries

1

The changes implemented at Narita were driven by a combination of

reasons In terms of capacity with both the number of Star Alliance

carriers serving Narita and the passenger volume increasing additional

check-in space would have been needed This made the airport an ideal

location for implementing a new concept based on the experience

obtained during the London Heathrow Terminal 2 project There the

Alliance has succeeded in reducing the required check-in space by 20

as a result of the new check-in concept

In addition to Narita Star Alliance has made changes to the check-in

concept at Satildeo Paulo ndash Guarulhos and Los Angeles Tom Bradley

International Terminal based on the experience the Alliance made during

the Terminal 2 project at London ndash Heathrow Airport where a completely

new check-in concept was put into place There all Star Alliance member

airlines use the same check-in kiosks make use of common bag-drop

counters and even share Economy Class check-in desks Using the

success of the Terminal 2 project as a base the Alliance is enhancing the

customer experience at other airports around the globe implementing

various technological advances made in London In addition at a Chief

Executive Board Meeting held earlier this month in Zurich the member

carrier CEOs agreed to develop standardised processes for airport

passenger services covering off-airport and self-service check-in fast

bag drop technology at airports baggage self-tagging and automated

travel document validation As these standards are implemented these

will not only provide smoother service to the Alliancersquos customers but

also reduce infrastructure requirements and handling costs at all of the

1300 airports the Alliance is presently serving

2

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 3: Egyptair news 6 july 2016

httpwwwinnfradcom

مسجل القمرة وضح محاوالت إلخماد روترز تفاصل جددة حول سقوط طائرة مصر للطران المنكوبة

بدء تفرػ صندوق مسجل محادثات لجنة التحقق والعمل اإلرهابى فرضة مطروحة حرق قبل تحطمها

الكابنة

ال زال لؽز سقوط طائرة مصر للطران بالبحر المتوسط فى ماو الماضى بعد إقالعها

لكن الوم الثالثاء من مطار شارل دجول فى فرنسا متجهة إلى القاهرة مجهول

مصادر بلجنة التحقق فى الحادث قالت إن مسجل قمرة الطائرة أوضح حدوث حرق

ومحاوالت إلخماده وهو ما توافق مع البانات األولة التى تم التوصل إلها

فى البحر المتوسط فى طرق ( إه )وهوت الطائرة وهى من نوع إرباص

شخصا هم كل من كانوا على ماو وقتل 9عودتها من بارس إلى القاهرة فى

وال زال سبب الحادث مجهوال متنها

ونو الماضى إن البانات 9وكانت لجنة التحقق قالت فى بان صدر وم

مع رسائل نظم التواصل واإلبالغ تتوافق المستخلصة من مسجل بانات الرحلة

مع الطائرة والتى تشر إلى وجود دخان فى دورة الماه ودخان صادر من ؼرفة

وقالت المصادر الوم الثالثاء إن كل الفرضات األجهزة اإللكترونة للطائرة

مطروحة كأسباب لسقوط الطائرة ومن بنها فرضة العمل اإلرهابى خاصة مشرة إلى

أن من النادر حدوث حرق كبر بشكل مفاجىء مثلما توضح كل المعلومات

والمؤشرات

وأكدت مصادر بقطاع الطران المدنى أن لجنة التحقق فى حادث سقوط الطائرة

المصرة المنكوبة بدأت تفرػ الصندوق الخاص بالتسجالت الصوتة الدائرة داخل

كابنة القادة فى معامل وزارة الطران المدنى وذلك بعد اتمام عملة اإلصالح

بالمعامل الفرنسة

1

وأشارت المصادر إلى أن هناك فارق بن التفرػ واالستماع والتحلل التفرػ

عنى تفرػ محتوات التسجالت وهى النصؾ ساعة األخرة من المحادثات التى

دارت داخل كابنة القادة بن الكابتن ومساعده وكافة األصوات التى سمعت

داخل كابنة القادة أو أى محادثات دارت بن الطاقم وبرج المراقبة وهل ظهر

شىء مرب كصوت فرقعة واضح أو ما شر إلى وجود حرق على الطائرة

وأضافت المصادر أنه بعد ذلك تأتى المرحلة الثانة وهى تحلل التسجالت ومعرفة

األصوات وتحدد أصحابها والتفرقة بن كالم الكابتن ومساعده أو أى أصوات

أخرى وإذا ظهر صوت فرقعة تم تحلله لمعرفة إذا كان تفجر أم أنشطار ألجزاء

ا وأجراء مطابقة بن صندوق من الطائرة وإذا كان ؼر واضح تم تحلله طف

وقالت المصادر تم إصالح البانات والتسجالت لمعرفة تطابق كالهما معا

الصندوقن بالمعامل الفرنسة التى نجحت فى معالجة التلؾ بذاكرة التسجالت

الناتجة عن مكوث الصندوق لفترة طولة تحت الماء بنما لم ستؽرق اصالح

صندوق البانات فترة طولة

Lethbridgeوكانت اللجنة قد أعلنت األام الماضة عن أن السفنة John

المؤجرة من الحكومة المصرة قامت بانتشال جمع الرفات البشرة التى قد تم

من خالل خبراء الطب الشرعى A320تحدد مكانها بموقع حادث سقوط الطائرة

وأضافت اللجنة فى بان لها المصرى والفرنسى المتواجدون على متن السفنة

ؼادرت السفنة موقع الحادث الى مناء اإلسكندرة حث ستم تسلم ماتم

انتشاله من أشالء ورفات بشرة الى مسئولى النابة العامة وممثلى مصلحة الطب

الشرعى المصرى وذلك بحضور أعضاء لجنة التحقق الفنى بالحادث لتم على

الفور نقل األشالء إلى مصلحة الطب الشرعى بالقاهرة للبدء فى عمل تحلل الـ

DNA واستكمال اإلجراءات المتبعة فى هذا الشأن

2

أام راكبا من البحرن إلى القاهرة فى نقلنا مصر للطران

httpwwwyoum7com

قال صفوت مسلم رئس الشركة القابضة لمصر للطران إن الشركة نقلت

ولو وحتى رحلة إضافة من البحرن فى الفترة من مصرا على متن

الجارى لعودة المدرسن العاملن بدولة البحرن إلى أرض الوطن لقضاء عطلة العد

رحالت وما باإلضافة إلى الرحلة وأجازة نهاة العام الدراسى حث تم تسر

أنه من المقرر بدء المرحلة الثانة لعودة المدرسن إلى مسلموأضاؾ الومة

جدر بالذكر أن الشركة حرصت سبتمبر القادم وحتى البحرن فى الفترة من

ة وحتى نهاة الموسم الصفى على تشؽل رحالت إضافة وتكبر خالل الفترة الحال

طرازاتها إلى عدد من دول الخلج العربى مثل اإلمارات والكوت والسعودة وقطر

وؼرها الستعاب أكبر عدد ممكن من الركاب سواء الزائرن األشقاء من الدول

العربة وكذلك لعودة المصرن العاملن بالخارج إلى مصر خالل فترة اإلجازات

ونظرا إللؽاء العمل بالتوقت الصفى الذى كان مقرر تطبقه اعتبارا من فجر وم

ولو أهابت مصر للطران بالسادة عمالئها الكرام سرعة مراجعة مواعد 8الجمعة

إقالع رحالتهم المدونة على تذاكر السفر عن طرق الموقع اإللكترونى

egyptaircom من أى محمول أو 77أو مركز الخدمة التلفونة

وكذلك ضرورة من أى تلفون أرضى أو وكالء الساحة والسفر 97

ساعات على األقل وساعتن التواجد بالمطار قبل مواعد إقالع الرحالت الدولة بـ

للرحالت الداخلة

كتب أحمد حمادة

httpwwwvetogatecom

انتظام حركة المالحة الجوة لرحالت مصر للطران بمطار القاهرة

شهد مطار القاهرة الدولى الوم الثالثاء انتظام حركة المالحة

الجوة لرحالت شركة مصر للطران والمتجهة من وإل العواصم

األوروبة والعربة

وصرحت مصادر مالحة بمطار القاهرة أن جمع رحالت شركة

مصر للطران أقلعت ف المواعد المحددة لها من قبل الشركة وفقا

لجدول التشؽل وأن الشركة لموسى أي تأخرات

وكان مطار القاهرة الدول قد شهد صباح الوم الثالثاء إلؽاء

رحالت دولة تابعة للخطوط اإلطالة والتونسة والسودانة

وشركت المصرة العالمة للطران وخطوط شركة نسمة للطران

بسبب عدم جدواها اقتصادا وقلة عدد الركاب

httpmalwafdorg

شد بجهود العاملن بالخدمات الجوة صفوت مسلم

أكد صفوت مسلم رئيس الشركة القابضة مصر للطيران أنه تم تأجير

محطة تكييف مركزى من كبرى الشركات العالمية للتكيف من النوعية

نفسها الموجودة بالخدمات الجوية حرصا على استمرار العمل بعد أن

احترقت كروت وحدة التكييف المركزى بالشركة

وأضاف مسلم في تصريحات صحفية اليوم الثالثاء أن أسباب حريق

وحدة التكييف المركزى مرجح ان تكون بسبب شدة التيار الكهربائي بشكل

مفاجئ وجار التحقيق لمعرفة األسباب الحقيقية وراء احتراق كروت وحدة

التكييف

وأشار إلى أن محطة التكييف المركزى المؤجرة لمدة أسبوع واحد فقط

وصلت من اإلسكندرية على شاحنات ضخمة حتى يتم إصالح المحطة

مليون جنيه نظرا ألنها من أحدث محطات 12األساسية التى تقدر قيمتها بـ

التكييف العالميه وتم استيراد كروت إضافية لتالفى حدوث المشكلة مرة

أخرى

وأشاد صفوت بجهود العاملين بالخدمات الجوية فى العمل بمطابخ تصل

درجة مئوية حرصا على استمرار سير 40درجة حرارتها إلى أكثر من

العمل وتقديم الوجبات على الطائرات فى مواعيدها

httpwwwiataorg

India Sees Highest Domestic Market Growth in 2015

Montreal - The International Air Transport Association (IATA)

announced industry performance statistics for 2015 showing

that among the worldrsquos largest domestic markets India had the

fastest domestic passenger growth in 2015 With annual growth

of 188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

India Sees Highest Domestic Market Growth in 2015

The International Air Transport Association (IATA) announced

industry performance statistics for 2015 showing that among

the worldrsquos largest domestic markets India had the fastest

domestic passenger growth in 2015 With annual growth of

188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

ICAO Secretary General Partnership and Investment Crucial to

Sustainable Aviation Development in Africa

Significant contributions towards safe and secure air transport and the prosperity

and sustainability of African communities could be achieved if sufficient investment

is made towards the development of Africarsquos civil aviation capacities including

infrastructure and skilled human resources remarked ICAOrsquos Secretary General

during the Third ICAO Africa and Indian Ocean (AFI) Aviation Week in Malabo

Equatorial Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos greatest examples

today of what cooperation and commitment can deliver in terms of concrete civil

aviation progress Dr Liu highlighted ―ICAO has been working very hard to foster

this type of cooperation in every world region and we are tremendously grateful that

these comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial Guinea at the

African Union Conference Center in Malabo The wide ranging series of events

convened included the Third Africa-Indian Ocean (AFI) Aviation Safety and Security

Symposium the Second Human Resources Development Fund (HRDF) for Africa

Meeting the Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third Comprehensive

Regional Implementation Plan for Aviation Security and Facilitation in Africa (AFI

SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking stock of the

progress and status of regional safety targets set by the African Ministers of

Transport in 2012 Respective participants also reviewed the status of implementation

of ongoing initiatives and plans guiding effective cooperation on aviation safety

security and human resources development discussed the related outcomes from

recent African high-level meetings and Declarations and heard proposals on how the

specific work programmes under each area could be further improved in light of

latest data and developments

1

―The successful implementation of current Safety and Security priorities are

directly linked to States having the necessary human resources at their

disposal inclusive of the required qualifications competencies and experience

to address their responsibilities Dr Liu noted ―These issues are particularly

crucial for African States which are now experiencing significant traffic growth

whether due to increased international or domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable ICAOrsquos

many partnerships on the African continent have been to the achievement of

practical and sustainable civil aviation development commenting that ―in

supporting African States to meet their obligations under the Chicago

Convention the African Union Commission and the AU specialized agency the

African Civil Aviation Commission (AFCAC) as well as Regional Economic

Communities are sparing no effort as we continue to jointly assist national

governments in meeting global and regional targets in line with ICAOrsquos

Strategic Objectives Their support and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved level

of compliance with ICAOrsquos Standards and Recommended Practices )SARPs(

―We are seeing an increasing number of States with ICAO Universal Safety

Oversight Audit Programme Effective Implementation rates over 60 percent

and a diminishing number of outstanding Significant Safety Concerns These

are indeed very positive trends but they must continue to be improved upon

Dr Liu said

Since taking office Secretary General Liu has been advocating tirelessly with

ICAO Member States UN system agencies the donor community and all

relevant stakeholders on aviationrsquos relationship to successful sustainable

development planning and the attainment of the United Nations Agenda 2030

Sustainable Development Goals ―Effectively resourced and administered civil

aviation systems in States are essential to establishing air transportrsquos global

connectivity which in turn serves as a key catalyst for sustainable economic

and social development she commented adding that a fundamental

prerequisite for gaining access to air transportrsquos global connectivity and

opening up access to international markets and trade flows is a safe and secure

air transport system through effectively implementing SARPs and policies

2

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO assistance

activities aimed at improving safety and security oversight The occasion

was also used to release the Second Edition of the Annual Safety Report

of the RASG-AFI signing of the project document for membership of the

African Flight Procedure Programmes (AFPP) by two States aimed at

fostering PBN implementation and of an ICAO Technical Cooperation

Bureau project agreement on safety and security assistance with

Equatorial Guinea

ICAOrsquos 2016 AFI Aviation Week attracted over 200 participants from 35

States and 25 international and regional organizations

3

httpwwwatnaero

STAR ALLIANCE ROLLS OUT NEW CHECK-IN CONCEPT

AT TOKYO ndash NARITA AIRPORT TERMINAL 1Star Alliance has successfully completed the rollout of a new check-in

concept in the south wing at Tokyo ndash Narita Terminal 1 offering

customers a wider choice of check-in options and giving them more

control over this part of the travel process thereby creating time savings

To achieve this the layout of the check-in area was changed and

travellers will now find the check-in desks allocated by airline rather than

class of travel as was previously the case in Narita

This revised layout goes hand in hand with the installation of new self-

service check-in machines which in addition to issuing boarding passes

also print baggage tags This makes Star Alliance the first airline alliance

to offer international travellers from Japan the option of self-printing and

self-tagging

―Our initiative in Narita is part of our global strategy of reducing

operational complexities and striving for standardisation with the aim of

providing customers with a better travel experience said Mark Schwab

CEO Star Alliance ―Initial statistics show that the majority of travellers

are already making use of the new self-service option he continued

The 116 new common use kiosks form the backbone of the new concept

at Narita These allow customers to check-in for any of the 17 member

carriers - Air Canada Air China Air New Zealand ANA Austrian Asiana

Airlines Ethiopian Airlines EVA Air LOT Polish Airlines Lufthansa

Scandinavian Airlines Shenzhen Airlines Singapore Airlines SWISS

Turkish Airlines THAI and United - flying from Terminal 1 Passengers

with hand luggage only can proceed directly to the gate while those with

checked luggage can obtain the corresponding tag from the kiosk apply

it and then proceed to special baggage drop-off counters At present

three member airlines offer bag tag printing with the remaining 14

scheduled to do so by mid-July Full service check-in desks for First

Business and Star Alliance Gold customers as well as for Economy Class

passengers requiring additional support complete the offer

Currently 18 Star Alliance member carriers serve Narita providing

passengers the choice of 1300 weekly flights to 61 destinations in 24

countries

1

The changes implemented at Narita were driven by a combination of

reasons In terms of capacity with both the number of Star Alliance

carriers serving Narita and the passenger volume increasing additional

check-in space would have been needed This made the airport an ideal

location for implementing a new concept based on the experience

obtained during the London Heathrow Terminal 2 project There the

Alliance has succeeded in reducing the required check-in space by 20

as a result of the new check-in concept

In addition to Narita Star Alliance has made changes to the check-in

concept at Satildeo Paulo ndash Guarulhos and Los Angeles Tom Bradley

International Terminal based on the experience the Alliance made during

the Terminal 2 project at London ndash Heathrow Airport where a completely

new check-in concept was put into place There all Star Alliance member

airlines use the same check-in kiosks make use of common bag-drop

counters and even share Economy Class check-in desks Using the

success of the Terminal 2 project as a base the Alliance is enhancing the

customer experience at other airports around the globe implementing

various technological advances made in London In addition at a Chief

Executive Board Meeting held earlier this month in Zurich the member

carrier CEOs agreed to develop standardised processes for airport

passenger services covering off-airport and self-service check-in fast

bag drop technology at airports baggage self-tagging and automated

travel document validation As these standards are implemented these

will not only provide smoother service to the Alliancersquos customers but

also reduce infrastructure requirements and handling costs at all of the

1300 airports the Alliance is presently serving

2

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 4: Egyptair news 6 july 2016

وأشارت المصادر إلى أن هناك فارق بن التفرػ واالستماع والتحلل التفرػ

عنى تفرػ محتوات التسجالت وهى النصؾ ساعة األخرة من المحادثات التى

دارت داخل كابنة القادة بن الكابتن ومساعده وكافة األصوات التى سمعت

داخل كابنة القادة أو أى محادثات دارت بن الطاقم وبرج المراقبة وهل ظهر

شىء مرب كصوت فرقعة واضح أو ما شر إلى وجود حرق على الطائرة

وأضافت المصادر أنه بعد ذلك تأتى المرحلة الثانة وهى تحلل التسجالت ومعرفة

األصوات وتحدد أصحابها والتفرقة بن كالم الكابتن ومساعده أو أى أصوات

أخرى وإذا ظهر صوت فرقعة تم تحلله لمعرفة إذا كان تفجر أم أنشطار ألجزاء

ا وأجراء مطابقة بن صندوق من الطائرة وإذا كان ؼر واضح تم تحلله طف

وقالت المصادر تم إصالح البانات والتسجالت لمعرفة تطابق كالهما معا

الصندوقن بالمعامل الفرنسة التى نجحت فى معالجة التلؾ بذاكرة التسجالت

الناتجة عن مكوث الصندوق لفترة طولة تحت الماء بنما لم ستؽرق اصالح

صندوق البانات فترة طولة

Lethbridgeوكانت اللجنة قد أعلنت األام الماضة عن أن السفنة John

المؤجرة من الحكومة المصرة قامت بانتشال جمع الرفات البشرة التى قد تم

من خالل خبراء الطب الشرعى A320تحدد مكانها بموقع حادث سقوط الطائرة

وأضافت اللجنة فى بان لها المصرى والفرنسى المتواجدون على متن السفنة

ؼادرت السفنة موقع الحادث الى مناء اإلسكندرة حث ستم تسلم ماتم

انتشاله من أشالء ورفات بشرة الى مسئولى النابة العامة وممثلى مصلحة الطب

الشرعى المصرى وذلك بحضور أعضاء لجنة التحقق الفنى بالحادث لتم على

الفور نقل األشالء إلى مصلحة الطب الشرعى بالقاهرة للبدء فى عمل تحلل الـ

DNA واستكمال اإلجراءات المتبعة فى هذا الشأن

2

أام راكبا من البحرن إلى القاهرة فى نقلنا مصر للطران

httpwwwyoum7com

قال صفوت مسلم رئس الشركة القابضة لمصر للطران إن الشركة نقلت

ولو وحتى رحلة إضافة من البحرن فى الفترة من مصرا على متن

الجارى لعودة المدرسن العاملن بدولة البحرن إلى أرض الوطن لقضاء عطلة العد

رحالت وما باإلضافة إلى الرحلة وأجازة نهاة العام الدراسى حث تم تسر

أنه من المقرر بدء المرحلة الثانة لعودة المدرسن إلى مسلموأضاؾ الومة

جدر بالذكر أن الشركة حرصت سبتمبر القادم وحتى البحرن فى الفترة من

ة وحتى نهاة الموسم الصفى على تشؽل رحالت إضافة وتكبر خالل الفترة الحال

طرازاتها إلى عدد من دول الخلج العربى مثل اإلمارات والكوت والسعودة وقطر

وؼرها الستعاب أكبر عدد ممكن من الركاب سواء الزائرن األشقاء من الدول

العربة وكذلك لعودة المصرن العاملن بالخارج إلى مصر خالل فترة اإلجازات

ونظرا إللؽاء العمل بالتوقت الصفى الذى كان مقرر تطبقه اعتبارا من فجر وم

ولو أهابت مصر للطران بالسادة عمالئها الكرام سرعة مراجعة مواعد 8الجمعة

إقالع رحالتهم المدونة على تذاكر السفر عن طرق الموقع اإللكترونى

egyptaircom من أى محمول أو 77أو مركز الخدمة التلفونة

وكذلك ضرورة من أى تلفون أرضى أو وكالء الساحة والسفر 97

ساعات على األقل وساعتن التواجد بالمطار قبل مواعد إقالع الرحالت الدولة بـ

للرحالت الداخلة

كتب أحمد حمادة

httpwwwvetogatecom

انتظام حركة المالحة الجوة لرحالت مصر للطران بمطار القاهرة

شهد مطار القاهرة الدولى الوم الثالثاء انتظام حركة المالحة

الجوة لرحالت شركة مصر للطران والمتجهة من وإل العواصم

األوروبة والعربة

وصرحت مصادر مالحة بمطار القاهرة أن جمع رحالت شركة

مصر للطران أقلعت ف المواعد المحددة لها من قبل الشركة وفقا

لجدول التشؽل وأن الشركة لموسى أي تأخرات

وكان مطار القاهرة الدول قد شهد صباح الوم الثالثاء إلؽاء

رحالت دولة تابعة للخطوط اإلطالة والتونسة والسودانة

وشركت المصرة العالمة للطران وخطوط شركة نسمة للطران

بسبب عدم جدواها اقتصادا وقلة عدد الركاب

httpmalwafdorg

شد بجهود العاملن بالخدمات الجوة صفوت مسلم

أكد صفوت مسلم رئيس الشركة القابضة مصر للطيران أنه تم تأجير

محطة تكييف مركزى من كبرى الشركات العالمية للتكيف من النوعية

نفسها الموجودة بالخدمات الجوية حرصا على استمرار العمل بعد أن

احترقت كروت وحدة التكييف المركزى بالشركة

وأضاف مسلم في تصريحات صحفية اليوم الثالثاء أن أسباب حريق

وحدة التكييف المركزى مرجح ان تكون بسبب شدة التيار الكهربائي بشكل

مفاجئ وجار التحقيق لمعرفة األسباب الحقيقية وراء احتراق كروت وحدة

التكييف

وأشار إلى أن محطة التكييف المركزى المؤجرة لمدة أسبوع واحد فقط

وصلت من اإلسكندرية على شاحنات ضخمة حتى يتم إصالح المحطة

مليون جنيه نظرا ألنها من أحدث محطات 12األساسية التى تقدر قيمتها بـ

التكييف العالميه وتم استيراد كروت إضافية لتالفى حدوث المشكلة مرة

أخرى

وأشاد صفوت بجهود العاملين بالخدمات الجوية فى العمل بمطابخ تصل

درجة مئوية حرصا على استمرار سير 40درجة حرارتها إلى أكثر من

العمل وتقديم الوجبات على الطائرات فى مواعيدها

httpwwwiataorg

India Sees Highest Domestic Market Growth in 2015

Montreal - The International Air Transport Association (IATA)

announced industry performance statistics for 2015 showing

that among the worldrsquos largest domestic markets India had the

fastest domestic passenger growth in 2015 With annual growth

of 188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

India Sees Highest Domestic Market Growth in 2015

The International Air Transport Association (IATA) announced

industry performance statistics for 2015 showing that among

the worldrsquos largest domestic markets India had the fastest

domestic passenger growth in 2015 With annual growth of

188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

ICAO Secretary General Partnership and Investment Crucial to

Sustainable Aviation Development in Africa

Significant contributions towards safe and secure air transport and the prosperity

and sustainability of African communities could be achieved if sufficient investment

is made towards the development of Africarsquos civil aviation capacities including

infrastructure and skilled human resources remarked ICAOrsquos Secretary General

during the Third ICAO Africa and Indian Ocean (AFI) Aviation Week in Malabo

Equatorial Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos greatest examples

today of what cooperation and commitment can deliver in terms of concrete civil

aviation progress Dr Liu highlighted ―ICAO has been working very hard to foster

this type of cooperation in every world region and we are tremendously grateful that

these comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial Guinea at the

African Union Conference Center in Malabo The wide ranging series of events

convened included the Third Africa-Indian Ocean (AFI) Aviation Safety and Security

Symposium the Second Human Resources Development Fund (HRDF) for Africa

Meeting the Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third Comprehensive

Regional Implementation Plan for Aviation Security and Facilitation in Africa (AFI

SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking stock of the

progress and status of regional safety targets set by the African Ministers of

Transport in 2012 Respective participants also reviewed the status of implementation

of ongoing initiatives and plans guiding effective cooperation on aviation safety

security and human resources development discussed the related outcomes from

recent African high-level meetings and Declarations and heard proposals on how the

specific work programmes under each area could be further improved in light of

latest data and developments

1

―The successful implementation of current Safety and Security priorities are

directly linked to States having the necessary human resources at their

disposal inclusive of the required qualifications competencies and experience

to address their responsibilities Dr Liu noted ―These issues are particularly

crucial for African States which are now experiencing significant traffic growth

whether due to increased international or domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable ICAOrsquos

many partnerships on the African continent have been to the achievement of

practical and sustainable civil aviation development commenting that ―in

supporting African States to meet their obligations under the Chicago

Convention the African Union Commission and the AU specialized agency the

African Civil Aviation Commission (AFCAC) as well as Regional Economic

Communities are sparing no effort as we continue to jointly assist national

governments in meeting global and regional targets in line with ICAOrsquos

Strategic Objectives Their support and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved level

of compliance with ICAOrsquos Standards and Recommended Practices )SARPs(

―We are seeing an increasing number of States with ICAO Universal Safety

Oversight Audit Programme Effective Implementation rates over 60 percent

and a diminishing number of outstanding Significant Safety Concerns These

are indeed very positive trends but they must continue to be improved upon

Dr Liu said

Since taking office Secretary General Liu has been advocating tirelessly with

ICAO Member States UN system agencies the donor community and all

relevant stakeholders on aviationrsquos relationship to successful sustainable

development planning and the attainment of the United Nations Agenda 2030

Sustainable Development Goals ―Effectively resourced and administered civil

aviation systems in States are essential to establishing air transportrsquos global

connectivity which in turn serves as a key catalyst for sustainable economic

and social development she commented adding that a fundamental

prerequisite for gaining access to air transportrsquos global connectivity and

opening up access to international markets and trade flows is a safe and secure

air transport system through effectively implementing SARPs and policies

2

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO assistance

activities aimed at improving safety and security oversight The occasion

was also used to release the Second Edition of the Annual Safety Report

of the RASG-AFI signing of the project document for membership of the

African Flight Procedure Programmes (AFPP) by two States aimed at

fostering PBN implementation and of an ICAO Technical Cooperation

Bureau project agreement on safety and security assistance with

Equatorial Guinea

ICAOrsquos 2016 AFI Aviation Week attracted over 200 participants from 35

States and 25 international and regional organizations

3

httpwwwatnaero

STAR ALLIANCE ROLLS OUT NEW CHECK-IN CONCEPT

AT TOKYO ndash NARITA AIRPORT TERMINAL 1Star Alliance has successfully completed the rollout of a new check-in

concept in the south wing at Tokyo ndash Narita Terminal 1 offering

customers a wider choice of check-in options and giving them more

control over this part of the travel process thereby creating time savings

To achieve this the layout of the check-in area was changed and

travellers will now find the check-in desks allocated by airline rather than

class of travel as was previously the case in Narita

This revised layout goes hand in hand with the installation of new self-

service check-in machines which in addition to issuing boarding passes

also print baggage tags This makes Star Alliance the first airline alliance

to offer international travellers from Japan the option of self-printing and

self-tagging

―Our initiative in Narita is part of our global strategy of reducing

operational complexities and striving for standardisation with the aim of

providing customers with a better travel experience said Mark Schwab

CEO Star Alliance ―Initial statistics show that the majority of travellers

are already making use of the new self-service option he continued

The 116 new common use kiosks form the backbone of the new concept

at Narita These allow customers to check-in for any of the 17 member

carriers - Air Canada Air China Air New Zealand ANA Austrian Asiana

Airlines Ethiopian Airlines EVA Air LOT Polish Airlines Lufthansa

Scandinavian Airlines Shenzhen Airlines Singapore Airlines SWISS

Turkish Airlines THAI and United - flying from Terminal 1 Passengers

with hand luggage only can proceed directly to the gate while those with

checked luggage can obtain the corresponding tag from the kiosk apply

it and then proceed to special baggage drop-off counters At present

three member airlines offer bag tag printing with the remaining 14

scheduled to do so by mid-July Full service check-in desks for First

Business and Star Alliance Gold customers as well as for Economy Class

passengers requiring additional support complete the offer

Currently 18 Star Alliance member carriers serve Narita providing

passengers the choice of 1300 weekly flights to 61 destinations in 24

countries

1

The changes implemented at Narita were driven by a combination of

reasons In terms of capacity with both the number of Star Alliance

carriers serving Narita and the passenger volume increasing additional

check-in space would have been needed This made the airport an ideal

location for implementing a new concept based on the experience

obtained during the London Heathrow Terminal 2 project There the

Alliance has succeeded in reducing the required check-in space by 20

as a result of the new check-in concept

In addition to Narita Star Alliance has made changes to the check-in

concept at Satildeo Paulo ndash Guarulhos and Los Angeles Tom Bradley

International Terminal based on the experience the Alliance made during

the Terminal 2 project at London ndash Heathrow Airport where a completely

new check-in concept was put into place There all Star Alliance member

airlines use the same check-in kiosks make use of common bag-drop

counters and even share Economy Class check-in desks Using the

success of the Terminal 2 project as a base the Alliance is enhancing the

customer experience at other airports around the globe implementing

various technological advances made in London In addition at a Chief

Executive Board Meeting held earlier this month in Zurich the member

carrier CEOs agreed to develop standardised processes for airport

passenger services covering off-airport and self-service check-in fast

bag drop technology at airports baggage self-tagging and automated

travel document validation As these standards are implemented these

will not only provide smoother service to the Alliancersquos customers but

also reduce infrastructure requirements and handling costs at all of the

1300 airports the Alliance is presently serving

2

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 5: Egyptair news 6 july 2016

أام راكبا من البحرن إلى القاهرة فى نقلنا مصر للطران

httpwwwyoum7com

قال صفوت مسلم رئس الشركة القابضة لمصر للطران إن الشركة نقلت

ولو وحتى رحلة إضافة من البحرن فى الفترة من مصرا على متن

الجارى لعودة المدرسن العاملن بدولة البحرن إلى أرض الوطن لقضاء عطلة العد

رحالت وما باإلضافة إلى الرحلة وأجازة نهاة العام الدراسى حث تم تسر

أنه من المقرر بدء المرحلة الثانة لعودة المدرسن إلى مسلموأضاؾ الومة

جدر بالذكر أن الشركة حرصت سبتمبر القادم وحتى البحرن فى الفترة من

ة وحتى نهاة الموسم الصفى على تشؽل رحالت إضافة وتكبر خالل الفترة الحال

طرازاتها إلى عدد من دول الخلج العربى مثل اإلمارات والكوت والسعودة وقطر

وؼرها الستعاب أكبر عدد ممكن من الركاب سواء الزائرن األشقاء من الدول

العربة وكذلك لعودة المصرن العاملن بالخارج إلى مصر خالل فترة اإلجازات

ونظرا إللؽاء العمل بالتوقت الصفى الذى كان مقرر تطبقه اعتبارا من فجر وم

ولو أهابت مصر للطران بالسادة عمالئها الكرام سرعة مراجعة مواعد 8الجمعة

إقالع رحالتهم المدونة على تذاكر السفر عن طرق الموقع اإللكترونى

egyptaircom من أى محمول أو 77أو مركز الخدمة التلفونة

وكذلك ضرورة من أى تلفون أرضى أو وكالء الساحة والسفر 97

ساعات على األقل وساعتن التواجد بالمطار قبل مواعد إقالع الرحالت الدولة بـ

للرحالت الداخلة

كتب أحمد حمادة

httpwwwvetogatecom

انتظام حركة المالحة الجوة لرحالت مصر للطران بمطار القاهرة

شهد مطار القاهرة الدولى الوم الثالثاء انتظام حركة المالحة

الجوة لرحالت شركة مصر للطران والمتجهة من وإل العواصم

األوروبة والعربة

وصرحت مصادر مالحة بمطار القاهرة أن جمع رحالت شركة

مصر للطران أقلعت ف المواعد المحددة لها من قبل الشركة وفقا

لجدول التشؽل وأن الشركة لموسى أي تأخرات

وكان مطار القاهرة الدول قد شهد صباح الوم الثالثاء إلؽاء

رحالت دولة تابعة للخطوط اإلطالة والتونسة والسودانة

وشركت المصرة العالمة للطران وخطوط شركة نسمة للطران

بسبب عدم جدواها اقتصادا وقلة عدد الركاب

httpmalwafdorg

شد بجهود العاملن بالخدمات الجوة صفوت مسلم

أكد صفوت مسلم رئيس الشركة القابضة مصر للطيران أنه تم تأجير

محطة تكييف مركزى من كبرى الشركات العالمية للتكيف من النوعية

نفسها الموجودة بالخدمات الجوية حرصا على استمرار العمل بعد أن

احترقت كروت وحدة التكييف المركزى بالشركة

وأضاف مسلم في تصريحات صحفية اليوم الثالثاء أن أسباب حريق

وحدة التكييف المركزى مرجح ان تكون بسبب شدة التيار الكهربائي بشكل

مفاجئ وجار التحقيق لمعرفة األسباب الحقيقية وراء احتراق كروت وحدة

التكييف

وأشار إلى أن محطة التكييف المركزى المؤجرة لمدة أسبوع واحد فقط

وصلت من اإلسكندرية على شاحنات ضخمة حتى يتم إصالح المحطة

مليون جنيه نظرا ألنها من أحدث محطات 12األساسية التى تقدر قيمتها بـ

التكييف العالميه وتم استيراد كروت إضافية لتالفى حدوث المشكلة مرة

أخرى

وأشاد صفوت بجهود العاملين بالخدمات الجوية فى العمل بمطابخ تصل

درجة مئوية حرصا على استمرار سير 40درجة حرارتها إلى أكثر من

العمل وتقديم الوجبات على الطائرات فى مواعيدها

httpwwwiataorg

India Sees Highest Domestic Market Growth in 2015

Montreal - The International Air Transport Association (IATA)

announced industry performance statistics for 2015 showing

that among the worldrsquos largest domestic markets India had the

fastest domestic passenger growth in 2015 With annual growth

of 188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

India Sees Highest Domestic Market Growth in 2015

The International Air Transport Association (IATA) announced

industry performance statistics for 2015 showing that among

the worldrsquos largest domestic markets India had the fastest

domestic passenger growth in 2015 With annual growth of

188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

ICAO Secretary General Partnership and Investment Crucial to

Sustainable Aviation Development in Africa

Significant contributions towards safe and secure air transport and the prosperity

and sustainability of African communities could be achieved if sufficient investment

is made towards the development of Africarsquos civil aviation capacities including

infrastructure and skilled human resources remarked ICAOrsquos Secretary General

during the Third ICAO Africa and Indian Ocean (AFI) Aviation Week in Malabo

Equatorial Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos greatest examples

today of what cooperation and commitment can deliver in terms of concrete civil

aviation progress Dr Liu highlighted ―ICAO has been working very hard to foster

this type of cooperation in every world region and we are tremendously grateful that

these comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial Guinea at the

African Union Conference Center in Malabo The wide ranging series of events

convened included the Third Africa-Indian Ocean (AFI) Aviation Safety and Security

Symposium the Second Human Resources Development Fund (HRDF) for Africa

Meeting the Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third Comprehensive

Regional Implementation Plan for Aviation Security and Facilitation in Africa (AFI

SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking stock of the

progress and status of regional safety targets set by the African Ministers of

Transport in 2012 Respective participants also reviewed the status of implementation

of ongoing initiatives and plans guiding effective cooperation on aviation safety

security and human resources development discussed the related outcomes from

recent African high-level meetings and Declarations and heard proposals on how the

specific work programmes under each area could be further improved in light of

latest data and developments

1

―The successful implementation of current Safety and Security priorities are

directly linked to States having the necessary human resources at their

disposal inclusive of the required qualifications competencies and experience

to address their responsibilities Dr Liu noted ―These issues are particularly

crucial for African States which are now experiencing significant traffic growth

whether due to increased international or domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable ICAOrsquos

many partnerships on the African continent have been to the achievement of

practical and sustainable civil aviation development commenting that ―in

supporting African States to meet their obligations under the Chicago

Convention the African Union Commission and the AU specialized agency the

African Civil Aviation Commission (AFCAC) as well as Regional Economic

Communities are sparing no effort as we continue to jointly assist national

governments in meeting global and regional targets in line with ICAOrsquos

Strategic Objectives Their support and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved level

of compliance with ICAOrsquos Standards and Recommended Practices )SARPs(

―We are seeing an increasing number of States with ICAO Universal Safety

Oversight Audit Programme Effective Implementation rates over 60 percent

and a diminishing number of outstanding Significant Safety Concerns These

are indeed very positive trends but they must continue to be improved upon

Dr Liu said

Since taking office Secretary General Liu has been advocating tirelessly with

ICAO Member States UN system agencies the donor community and all

relevant stakeholders on aviationrsquos relationship to successful sustainable

development planning and the attainment of the United Nations Agenda 2030

Sustainable Development Goals ―Effectively resourced and administered civil

aviation systems in States are essential to establishing air transportrsquos global

connectivity which in turn serves as a key catalyst for sustainable economic

and social development she commented adding that a fundamental

prerequisite for gaining access to air transportrsquos global connectivity and

opening up access to international markets and trade flows is a safe and secure

air transport system through effectively implementing SARPs and policies

2

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO assistance

activities aimed at improving safety and security oversight The occasion

was also used to release the Second Edition of the Annual Safety Report

of the RASG-AFI signing of the project document for membership of the

African Flight Procedure Programmes (AFPP) by two States aimed at

fostering PBN implementation and of an ICAO Technical Cooperation

Bureau project agreement on safety and security assistance with

Equatorial Guinea

ICAOrsquos 2016 AFI Aviation Week attracted over 200 participants from 35

States and 25 international and regional organizations

3

httpwwwatnaero

STAR ALLIANCE ROLLS OUT NEW CHECK-IN CONCEPT

AT TOKYO ndash NARITA AIRPORT TERMINAL 1Star Alliance has successfully completed the rollout of a new check-in

concept in the south wing at Tokyo ndash Narita Terminal 1 offering

customers a wider choice of check-in options and giving them more

control over this part of the travel process thereby creating time savings

To achieve this the layout of the check-in area was changed and

travellers will now find the check-in desks allocated by airline rather than

class of travel as was previously the case in Narita

This revised layout goes hand in hand with the installation of new self-

service check-in machines which in addition to issuing boarding passes

also print baggage tags This makes Star Alliance the first airline alliance

to offer international travellers from Japan the option of self-printing and

self-tagging

―Our initiative in Narita is part of our global strategy of reducing

operational complexities and striving for standardisation with the aim of

providing customers with a better travel experience said Mark Schwab

CEO Star Alliance ―Initial statistics show that the majority of travellers

are already making use of the new self-service option he continued

The 116 new common use kiosks form the backbone of the new concept

at Narita These allow customers to check-in for any of the 17 member

carriers - Air Canada Air China Air New Zealand ANA Austrian Asiana

Airlines Ethiopian Airlines EVA Air LOT Polish Airlines Lufthansa

Scandinavian Airlines Shenzhen Airlines Singapore Airlines SWISS

Turkish Airlines THAI and United - flying from Terminal 1 Passengers

with hand luggage only can proceed directly to the gate while those with

checked luggage can obtain the corresponding tag from the kiosk apply

it and then proceed to special baggage drop-off counters At present

three member airlines offer bag tag printing with the remaining 14

scheduled to do so by mid-July Full service check-in desks for First

Business and Star Alliance Gold customers as well as for Economy Class

passengers requiring additional support complete the offer

Currently 18 Star Alliance member carriers serve Narita providing

passengers the choice of 1300 weekly flights to 61 destinations in 24

countries

1

The changes implemented at Narita were driven by a combination of

reasons In terms of capacity with both the number of Star Alliance

carriers serving Narita and the passenger volume increasing additional

check-in space would have been needed This made the airport an ideal

location for implementing a new concept based on the experience

obtained during the London Heathrow Terminal 2 project There the

Alliance has succeeded in reducing the required check-in space by 20

as a result of the new check-in concept

In addition to Narita Star Alliance has made changes to the check-in

concept at Satildeo Paulo ndash Guarulhos and Los Angeles Tom Bradley

International Terminal based on the experience the Alliance made during

the Terminal 2 project at London ndash Heathrow Airport where a completely

new check-in concept was put into place There all Star Alliance member

airlines use the same check-in kiosks make use of common bag-drop

counters and even share Economy Class check-in desks Using the

success of the Terminal 2 project as a base the Alliance is enhancing the

customer experience at other airports around the globe implementing

various technological advances made in London In addition at a Chief

Executive Board Meeting held earlier this month in Zurich the member

carrier CEOs agreed to develop standardised processes for airport

passenger services covering off-airport and self-service check-in fast

bag drop technology at airports baggage self-tagging and automated

travel document validation As these standards are implemented these

will not only provide smoother service to the Alliancersquos customers but

also reduce infrastructure requirements and handling costs at all of the

1300 airports the Alliance is presently serving

2

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 6: Egyptair news 6 july 2016

httpwwwvetogatecom

انتظام حركة المالحة الجوة لرحالت مصر للطران بمطار القاهرة

شهد مطار القاهرة الدولى الوم الثالثاء انتظام حركة المالحة

الجوة لرحالت شركة مصر للطران والمتجهة من وإل العواصم

األوروبة والعربة

وصرحت مصادر مالحة بمطار القاهرة أن جمع رحالت شركة

مصر للطران أقلعت ف المواعد المحددة لها من قبل الشركة وفقا

لجدول التشؽل وأن الشركة لموسى أي تأخرات

وكان مطار القاهرة الدول قد شهد صباح الوم الثالثاء إلؽاء

رحالت دولة تابعة للخطوط اإلطالة والتونسة والسودانة

وشركت المصرة العالمة للطران وخطوط شركة نسمة للطران

بسبب عدم جدواها اقتصادا وقلة عدد الركاب

httpmalwafdorg

شد بجهود العاملن بالخدمات الجوة صفوت مسلم

أكد صفوت مسلم رئيس الشركة القابضة مصر للطيران أنه تم تأجير

محطة تكييف مركزى من كبرى الشركات العالمية للتكيف من النوعية

نفسها الموجودة بالخدمات الجوية حرصا على استمرار العمل بعد أن

احترقت كروت وحدة التكييف المركزى بالشركة

وأضاف مسلم في تصريحات صحفية اليوم الثالثاء أن أسباب حريق

وحدة التكييف المركزى مرجح ان تكون بسبب شدة التيار الكهربائي بشكل

مفاجئ وجار التحقيق لمعرفة األسباب الحقيقية وراء احتراق كروت وحدة

التكييف

وأشار إلى أن محطة التكييف المركزى المؤجرة لمدة أسبوع واحد فقط

وصلت من اإلسكندرية على شاحنات ضخمة حتى يتم إصالح المحطة

مليون جنيه نظرا ألنها من أحدث محطات 12األساسية التى تقدر قيمتها بـ

التكييف العالميه وتم استيراد كروت إضافية لتالفى حدوث المشكلة مرة

أخرى

وأشاد صفوت بجهود العاملين بالخدمات الجوية فى العمل بمطابخ تصل

درجة مئوية حرصا على استمرار سير 40درجة حرارتها إلى أكثر من

العمل وتقديم الوجبات على الطائرات فى مواعيدها

httpwwwiataorg

India Sees Highest Domestic Market Growth in 2015

Montreal - The International Air Transport Association (IATA)

announced industry performance statistics for 2015 showing

that among the worldrsquos largest domestic markets India had the

fastest domestic passenger growth in 2015 With annual growth

of 188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

India Sees Highest Domestic Market Growth in 2015

The International Air Transport Association (IATA) announced

industry performance statistics for 2015 showing that among

the worldrsquos largest domestic markets India had the fastest

domestic passenger growth in 2015 With annual growth of

188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

ICAO Secretary General Partnership and Investment Crucial to

Sustainable Aviation Development in Africa

Significant contributions towards safe and secure air transport and the prosperity

and sustainability of African communities could be achieved if sufficient investment

is made towards the development of Africarsquos civil aviation capacities including

infrastructure and skilled human resources remarked ICAOrsquos Secretary General

during the Third ICAO Africa and Indian Ocean (AFI) Aviation Week in Malabo

Equatorial Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos greatest examples

today of what cooperation and commitment can deliver in terms of concrete civil

aviation progress Dr Liu highlighted ―ICAO has been working very hard to foster

this type of cooperation in every world region and we are tremendously grateful that

these comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial Guinea at the

African Union Conference Center in Malabo The wide ranging series of events

convened included the Third Africa-Indian Ocean (AFI) Aviation Safety and Security

Symposium the Second Human Resources Development Fund (HRDF) for Africa

Meeting the Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third Comprehensive

Regional Implementation Plan for Aviation Security and Facilitation in Africa (AFI

SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking stock of the

progress and status of regional safety targets set by the African Ministers of

Transport in 2012 Respective participants also reviewed the status of implementation

of ongoing initiatives and plans guiding effective cooperation on aviation safety

security and human resources development discussed the related outcomes from

recent African high-level meetings and Declarations and heard proposals on how the

specific work programmes under each area could be further improved in light of

latest data and developments

1

―The successful implementation of current Safety and Security priorities are

directly linked to States having the necessary human resources at their

disposal inclusive of the required qualifications competencies and experience

to address their responsibilities Dr Liu noted ―These issues are particularly

crucial for African States which are now experiencing significant traffic growth

whether due to increased international or domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable ICAOrsquos

many partnerships on the African continent have been to the achievement of

practical and sustainable civil aviation development commenting that ―in

supporting African States to meet their obligations under the Chicago

Convention the African Union Commission and the AU specialized agency the

African Civil Aviation Commission (AFCAC) as well as Regional Economic

Communities are sparing no effort as we continue to jointly assist national

governments in meeting global and regional targets in line with ICAOrsquos

Strategic Objectives Their support and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved level

of compliance with ICAOrsquos Standards and Recommended Practices )SARPs(

―We are seeing an increasing number of States with ICAO Universal Safety

Oversight Audit Programme Effective Implementation rates over 60 percent

and a diminishing number of outstanding Significant Safety Concerns These

are indeed very positive trends but they must continue to be improved upon

Dr Liu said

Since taking office Secretary General Liu has been advocating tirelessly with

ICAO Member States UN system agencies the donor community and all

relevant stakeholders on aviationrsquos relationship to successful sustainable

development planning and the attainment of the United Nations Agenda 2030

Sustainable Development Goals ―Effectively resourced and administered civil

aviation systems in States are essential to establishing air transportrsquos global

connectivity which in turn serves as a key catalyst for sustainable economic

and social development she commented adding that a fundamental

prerequisite for gaining access to air transportrsquos global connectivity and

opening up access to international markets and trade flows is a safe and secure

air transport system through effectively implementing SARPs and policies

2

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO assistance

activities aimed at improving safety and security oversight The occasion

was also used to release the Second Edition of the Annual Safety Report

of the RASG-AFI signing of the project document for membership of the

African Flight Procedure Programmes (AFPP) by two States aimed at

fostering PBN implementation and of an ICAO Technical Cooperation

Bureau project agreement on safety and security assistance with

Equatorial Guinea

ICAOrsquos 2016 AFI Aviation Week attracted over 200 participants from 35

States and 25 international and regional organizations

3

httpwwwatnaero

STAR ALLIANCE ROLLS OUT NEW CHECK-IN CONCEPT

AT TOKYO ndash NARITA AIRPORT TERMINAL 1Star Alliance has successfully completed the rollout of a new check-in

concept in the south wing at Tokyo ndash Narita Terminal 1 offering

customers a wider choice of check-in options and giving them more

control over this part of the travel process thereby creating time savings

To achieve this the layout of the check-in area was changed and

travellers will now find the check-in desks allocated by airline rather than

class of travel as was previously the case in Narita

This revised layout goes hand in hand with the installation of new self-

service check-in machines which in addition to issuing boarding passes

also print baggage tags This makes Star Alliance the first airline alliance

to offer international travellers from Japan the option of self-printing and

self-tagging

―Our initiative in Narita is part of our global strategy of reducing

operational complexities and striving for standardisation with the aim of

providing customers with a better travel experience said Mark Schwab

CEO Star Alliance ―Initial statistics show that the majority of travellers

are already making use of the new self-service option he continued

The 116 new common use kiosks form the backbone of the new concept

at Narita These allow customers to check-in for any of the 17 member

carriers - Air Canada Air China Air New Zealand ANA Austrian Asiana

Airlines Ethiopian Airlines EVA Air LOT Polish Airlines Lufthansa

Scandinavian Airlines Shenzhen Airlines Singapore Airlines SWISS

Turkish Airlines THAI and United - flying from Terminal 1 Passengers

with hand luggage only can proceed directly to the gate while those with

checked luggage can obtain the corresponding tag from the kiosk apply

it and then proceed to special baggage drop-off counters At present

three member airlines offer bag tag printing with the remaining 14

scheduled to do so by mid-July Full service check-in desks for First

Business and Star Alliance Gold customers as well as for Economy Class

passengers requiring additional support complete the offer

Currently 18 Star Alliance member carriers serve Narita providing

passengers the choice of 1300 weekly flights to 61 destinations in 24

countries

1

The changes implemented at Narita were driven by a combination of

reasons In terms of capacity with both the number of Star Alliance

carriers serving Narita and the passenger volume increasing additional

check-in space would have been needed This made the airport an ideal

location for implementing a new concept based on the experience

obtained during the London Heathrow Terminal 2 project There the

Alliance has succeeded in reducing the required check-in space by 20

as a result of the new check-in concept

In addition to Narita Star Alliance has made changes to the check-in

concept at Satildeo Paulo ndash Guarulhos and Los Angeles Tom Bradley

International Terminal based on the experience the Alliance made during

the Terminal 2 project at London ndash Heathrow Airport where a completely

new check-in concept was put into place There all Star Alliance member

airlines use the same check-in kiosks make use of common bag-drop

counters and even share Economy Class check-in desks Using the

success of the Terminal 2 project as a base the Alliance is enhancing the

customer experience at other airports around the globe implementing

various technological advances made in London In addition at a Chief

Executive Board Meeting held earlier this month in Zurich the member

carrier CEOs agreed to develop standardised processes for airport

passenger services covering off-airport and self-service check-in fast

bag drop technology at airports baggage self-tagging and automated

travel document validation As these standards are implemented these

will not only provide smoother service to the Alliancersquos customers but

also reduce infrastructure requirements and handling costs at all of the

1300 airports the Alliance is presently serving

2

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 7: Egyptair news 6 july 2016

httpmalwafdorg

شد بجهود العاملن بالخدمات الجوة صفوت مسلم

أكد صفوت مسلم رئيس الشركة القابضة مصر للطيران أنه تم تأجير

محطة تكييف مركزى من كبرى الشركات العالمية للتكيف من النوعية

نفسها الموجودة بالخدمات الجوية حرصا على استمرار العمل بعد أن

احترقت كروت وحدة التكييف المركزى بالشركة

وأضاف مسلم في تصريحات صحفية اليوم الثالثاء أن أسباب حريق

وحدة التكييف المركزى مرجح ان تكون بسبب شدة التيار الكهربائي بشكل

مفاجئ وجار التحقيق لمعرفة األسباب الحقيقية وراء احتراق كروت وحدة

التكييف

وأشار إلى أن محطة التكييف المركزى المؤجرة لمدة أسبوع واحد فقط

وصلت من اإلسكندرية على شاحنات ضخمة حتى يتم إصالح المحطة

مليون جنيه نظرا ألنها من أحدث محطات 12األساسية التى تقدر قيمتها بـ

التكييف العالميه وتم استيراد كروت إضافية لتالفى حدوث المشكلة مرة

أخرى

وأشاد صفوت بجهود العاملين بالخدمات الجوية فى العمل بمطابخ تصل

درجة مئوية حرصا على استمرار سير 40درجة حرارتها إلى أكثر من

العمل وتقديم الوجبات على الطائرات فى مواعيدها

httpwwwiataorg

India Sees Highest Domestic Market Growth in 2015

Montreal - The International Air Transport Association (IATA)

announced industry performance statistics for 2015 showing

that among the worldrsquos largest domestic markets India had the

fastest domestic passenger growth in 2015 With annual growth

of 188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

India Sees Highest Domestic Market Growth in 2015

The International Air Transport Association (IATA) announced

industry performance statistics for 2015 showing that among

the worldrsquos largest domestic markets India had the fastest

domestic passenger growth in 2015 With annual growth of

188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

ICAO Secretary General Partnership and Investment Crucial to

Sustainable Aviation Development in Africa

Significant contributions towards safe and secure air transport and the prosperity

and sustainability of African communities could be achieved if sufficient investment

is made towards the development of Africarsquos civil aviation capacities including

infrastructure and skilled human resources remarked ICAOrsquos Secretary General

during the Third ICAO Africa and Indian Ocean (AFI) Aviation Week in Malabo

Equatorial Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos greatest examples

today of what cooperation and commitment can deliver in terms of concrete civil

aviation progress Dr Liu highlighted ―ICAO has been working very hard to foster

this type of cooperation in every world region and we are tremendously grateful that

these comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial Guinea at the

African Union Conference Center in Malabo The wide ranging series of events

convened included the Third Africa-Indian Ocean (AFI) Aviation Safety and Security

Symposium the Second Human Resources Development Fund (HRDF) for Africa

Meeting the Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third Comprehensive

Regional Implementation Plan for Aviation Security and Facilitation in Africa (AFI

SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking stock of the

progress and status of regional safety targets set by the African Ministers of

Transport in 2012 Respective participants also reviewed the status of implementation

of ongoing initiatives and plans guiding effective cooperation on aviation safety

security and human resources development discussed the related outcomes from

recent African high-level meetings and Declarations and heard proposals on how the

specific work programmes under each area could be further improved in light of

latest data and developments

1

―The successful implementation of current Safety and Security priorities are

directly linked to States having the necessary human resources at their

disposal inclusive of the required qualifications competencies and experience

to address their responsibilities Dr Liu noted ―These issues are particularly

crucial for African States which are now experiencing significant traffic growth

whether due to increased international or domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable ICAOrsquos

many partnerships on the African continent have been to the achievement of

practical and sustainable civil aviation development commenting that ―in

supporting African States to meet their obligations under the Chicago

Convention the African Union Commission and the AU specialized agency the

African Civil Aviation Commission (AFCAC) as well as Regional Economic

Communities are sparing no effort as we continue to jointly assist national

governments in meeting global and regional targets in line with ICAOrsquos

Strategic Objectives Their support and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved level

of compliance with ICAOrsquos Standards and Recommended Practices )SARPs(

―We are seeing an increasing number of States with ICAO Universal Safety

Oversight Audit Programme Effective Implementation rates over 60 percent

and a diminishing number of outstanding Significant Safety Concerns These

are indeed very positive trends but they must continue to be improved upon

Dr Liu said

Since taking office Secretary General Liu has been advocating tirelessly with

ICAO Member States UN system agencies the donor community and all

relevant stakeholders on aviationrsquos relationship to successful sustainable

development planning and the attainment of the United Nations Agenda 2030

Sustainable Development Goals ―Effectively resourced and administered civil

aviation systems in States are essential to establishing air transportrsquos global

connectivity which in turn serves as a key catalyst for sustainable economic

and social development she commented adding that a fundamental

prerequisite for gaining access to air transportrsquos global connectivity and

opening up access to international markets and trade flows is a safe and secure

air transport system through effectively implementing SARPs and policies

2

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO assistance

activities aimed at improving safety and security oversight The occasion

was also used to release the Second Edition of the Annual Safety Report

of the RASG-AFI signing of the project document for membership of the

African Flight Procedure Programmes (AFPP) by two States aimed at

fostering PBN implementation and of an ICAO Technical Cooperation

Bureau project agreement on safety and security assistance with

Equatorial Guinea

ICAOrsquos 2016 AFI Aviation Week attracted over 200 participants from 35

States and 25 international and regional organizations

3

httpwwwatnaero

STAR ALLIANCE ROLLS OUT NEW CHECK-IN CONCEPT

AT TOKYO ndash NARITA AIRPORT TERMINAL 1Star Alliance has successfully completed the rollout of a new check-in

concept in the south wing at Tokyo ndash Narita Terminal 1 offering

customers a wider choice of check-in options and giving them more

control over this part of the travel process thereby creating time savings

To achieve this the layout of the check-in area was changed and

travellers will now find the check-in desks allocated by airline rather than

class of travel as was previously the case in Narita

This revised layout goes hand in hand with the installation of new self-

service check-in machines which in addition to issuing boarding passes

also print baggage tags This makes Star Alliance the first airline alliance

to offer international travellers from Japan the option of self-printing and

self-tagging

―Our initiative in Narita is part of our global strategy of reducing

operational complexities and striving for standardisation with the aim of

providing customers with a better travel experience said Mark Schwab

CEO Star Alliance ―Initial statistics show that the majority of travellers

are already making use of the new self-service option he continued

The 116 new common use kiosks form the backbone of the new concept

at Narita These allow customers to check-in for any of the 17 member

carriers - Air Canada Air China Air New Zealand ANA Austrian Asiana

Airlines Ethiopian Airlines EVA Air LOT Polish Airlines Lufthansa

Scandinavian Airlines Shenzhen Airlines Singapore Airlines SWISS

Turkish Airlines THAI and United - flying from Terminal 1 Passengers

with hand luggage only can proceed directly to the gate while those with

checked luggage can obtain the corresponding tag from the kiosk apply

it and then proceed to special baggage drop-off counters At present

three member airlines offer bag tag printing with the remaining 14

scheduled to do so by mid-July Full service check-in desks for First

Business and Star Alliance Gold customers as well as for Economy Class

passengers requiring additional support complete the offer

Currently 18 Star Alliance member carriers serve Narita providing

passengers the choice of 1300 weekly flights to 61 destinations in 24

countries

1

The changes implemented at Narita were driven by a combination of

reasons In terms of capacity with both the number of Star Alliance

carriers serving Narita and the passenger volume increasing additional

check-in space would have been needed This made the airport an ideal

location for implementing a new concept based on the experience

obtained during the London Heathrow Terminal 2 project There the

Alliance has succeeded in reducing the required check-in space by 20

as a result of the new check-in concept

In addition to Narita Star Alliance has made changes to the check-in

concept at Satildeo Paulo ndash Guarulhos and Los Angeles Tom Bradley

International Terminal based on the experience the Alliance made during

the Terminal 2 project at London ndash Heathrow Airport where a completely

new check-in concept was put into place There all Star Alliance member

airlines use the same check-in kiosks make use of common bag-drop

counters and even share Economy Class check-in desks Using the

success of the Terminal 2 project as a base the Alliance is enhancing the

customer experience at other airports around the globe implementing

various technological advances made in London In addition at a Chief

Executive Board Meeting held earlier this month in Zurich the member

carrier CEOs agreed to develop standardised processes for airport

passenger services covering off-airport and self-service check-in fast

bag drop technology at airports baggage self-tagging and automated

travel document validation As these standards are implemented these

will not only provide smoother service to the Alliancersquos customers but

also reduce infrastructure requirements and handling costs at all of the

1300 airports the Alliance is presently serving

2

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 8: Egyptair news 6 july 2016

httpwwwiataorg

India Sees Highest Domestic Market Growth in 2015

Montreal - The International Air Transport Association (IATA)

announced industry performance statistics for 2015 showing

that among the worldrsquos largest domestic markets India had the

fastest domestic passenger growth in 2015 With annual growth

of 188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

India Sees Highest Domestic Market Growth in 2015

The International Air Transport Association (IATA) announced

industry performance statistics for 2015 showing that among

the worldrsquos largest domestic markets India had the fastest

domestic passenger growth in 2015 With annual growth of

188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

ICAO Secretary General Partnership and Investment Crucial to

Sustainable Aviation Development in Africa

Significant contributions towards safe and secure air transport and the prosperity

and sustainability of African communities could be achieved if sufficient investment

is made towards the development of Africarsquos civil aviation capacities including

infrastructure and skilled human resources remarked ICAOrsquos Secretary General

during the Third ICAO Africa and Indian Ocean (AFI) Aviation Week in Malabo

Equatorial Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos greatest examples

today of what cooperation and commitment can deliver in terms of concrete civil

aviation progress Dr Liu highlighted ―ICAO has been working very hard to foster

this type of cooperation in every world region and we are tremendously grateful that

these comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial Guinea at the

African Union Conference Center in Malabo The wide ranging series of events

convened included the Third Africa-Indian Ocean (AFI) Aviation Safety and Security

Symposium the Second Human Resources Development Fund (HRDF) for Africa

Meeting the Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third Comprehensive

Regional Implementation Plan for Aviation Security and Facilitation in Africa (AFI

SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking stock of the

progress and status of regional safety targets set by the African Ministers of

Transport in 2012 Respective participants also reviewed the status of implementation

of ongoing initiatives and plans guiding effective cooperation on aviation safety

security and human resources development discussed the related outcomes from

recent African high-level meetings and Declarations and heard proposals on how the

specific work programmes under each area could be further improved in light of

latest data and developments

1

―The successful implementation of current Safety and Security priorities are

directly linked to States having the necessary human resources at their

disposal inclusive of the required qualifications competencies and experience

to address their responsibilities Dr Liu noted ―These issues are particularly

crucial for African States which are now experiencing significant traffic growth

whether due to increased international or domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable ICAOrsquos

many partnerships on the African continent have been to the achievement of

practical and sustainable civil aviation development commenting that ―in

supporting African States to meet their obligations under the Chicago

Convention the African Union Commission and the AU specialized agency the

African Civil Aviation Commission (AFCAC) as well as Regional Economic

Communities are sparing no effort as we continue to jointly assist national

governments in meeting global and regional targets in line with ICAOrsquos

Strategic Objectives Their support and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved level

of compliance with ICAOrsquos Standards and Recommended Practices )SARPs(

―We are seeing an increasing number of States with ICAO Universal Safety

Oversight Audit Programme Effective Implementation rates over 60 percent

and a diminishing number of outstanding Significant Safety Concerns These

are indeed very positive trends but they must continue to be improved upon

Dr Liu said

Since taking office Secretary General Liu has been advocating tirelessly with

ICAO Member States UN system agencies the donor community and all

relevant stakeholders on aviationrsquos relationship to successful sustainable

development planning and the attainment of the United Nations Agenda 2030

Sustainable Development Goals ―Effectively resourced and administered civil

aviation systems in States are essential to establishing air transportrsquos global

connectivity which in turn serves as a key catalyst for sustainable economic

and social development she commented adding that a fundamental

prerequisite for gaining access to air transportrsquos global connectivity and

opening up access to international markets and trade flows is a safe and secure

air transport system through effectively implementing SARPs and policies

2

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO assistance

activities aimed at improving safety and security oversight The occasion

was also used to release the Second Edition of the Annual Safety Report

of the RASG-AFI signing of the project document for membership of the

African Flight Procedure Programmes (AFPP) by two States aimed at

fostering PBN implementation and of an ICAO Technical Cooperation

Bureau project agreement on safety and security assistance with

Equatorial Guinea

ICAOrsquos 2016 AFI Aviation Week attracted over 200 participants from 35

States and 25 international and regional organizations

3

httpwwwatnaero

STAR ALLIANCE ROLLS OUT NEW CHECK-IN CONCEPT

AT TOKYO ndash NARITA AIRPORT TERMINAL 1Star Alliance has successfully completed the rollout of a new check-in

concept in the south wing at Tokyo ndash Narita Terminal 1 offering

customers a wider choice of check-in options and giving them more

control over this part of the travel process thereby creating time savings

To achieve this the layout of the check-in area was changed and

travellers will now find the check-in desks allocated by airline rather than

class of travel as was previously the case in Narita

This revised layout goes hand in hand with the installation of new self-

service check-in machines which in addition to issuing boarding passes

also print baggage tags This makes Star Alliance the first airline alliance

to offer international travellers from Japan the option of self-printing and

self-tagging

―Our initiative in Narita is part of our global strategy of reducing

operational complexities and striving for standardisation with the aim of

providing customers with a better travel experience said Mark Schwab

CEO Star Alliance ―Initial statistics show that the majority of travellers

are already making use of the new self-service option he continued

The 116 new common use kiosks form the backbone of the new concept

at Narita These allow customers to check-in for any of the 17 member

carriers - Air Canada Air China Air New Zealand ANA Austrian Asiana

Airlines Ethiopian Airlines EVA Air LOT Polish Airlines Lufthansa

Scandinavian Airlines Shenzhen Airlines Singapore Airlines SWISS

Turkish Airlines THAI and United - flying from Terminal 1 Passengers

with hand luggage only can proceed directly to the gate while those with

checked luggage can obtain the corresponding tag from the kiosk apply

it and then proceed to special baggage drop-off counters At present

three member airlines offer bag tag printing with the remaining 14

scheduled to do so by mid-July Full service check-in desks for First

Business and Star Alliance Gold customers as well as for Economy Class

passengers requiring additional support complete the offer

Currently 18 Star Alliance member carriers serve Narita providing

passengers the choice of 1300 weekly flights to 61 destinations in 24

countries

1

The changes implemented at Narita were driven by a combination of

reasons In terms of capacity with both the number of Star Alliance

carriers serving Narita and the passenger volume increasing additional

check-in space would have been needed This made the airport an ideal

location for implementing a new concept based on the experience

obtained during the London Heathrow Terminal 2 project There the

Alliance has succeeded in reducing the required check-in space by 20

as a result of the new check-in concept

In addition to Narita Star Alliance has made changes to the check-in

concept at Satildeo Paulo ndash Guarulhos and Los Angeles Tom Bradley

International Terminal based on the experience the Alliance made during

the Terminal 2 project at London ndash Heathrow Airport where a completely

new check-in concept was put into place There all Star Alliance member

airlines use the same check-in kiosks make use of common bag-drop

counters and even share Economy Class check-in desks Using the

success of the Terminal 2 project as a base the Alliance is enhancing the

customer experience at other airports around the globe implementing

various technological advances made in London In addition at a Chief

Executive Board Meeting held earlier this month in Zurich the member

carrier CEOs agreed to develop standardised processes for airport

passenger services covering off-airport and self-service check-in fast

bag drop technology at airports baggage self-tagging and automated

travel document validation As these standards are implemented these

will not only provide smoother service to the Alliancersquos customers but

also reduce infrastructure requirements and handling costs at all of the

1300 airports the Alliance is presently serving

2

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 9: Egyptair news 6 july 2016

httpwwwatnaero

India Sees Highest Domestic Market Growth in 2015

The International Air Transport Association (IATA) announced

industry performance statistics for 2015 showing that among

the worldrsquos largest domestic markets India had the fastest

domestic passenger growth in 2015 With annual growth of

188 (in a market of 80 million domestic passengers( Indiarsquos

performance surpassed that of Russia (119 growth in a

market of 47 million domestic passengers) China (97 growth

in a market of 394 million domestic passengers) and the United

States (54 growth in a market of 708 million domestic

passengers)

This information was included in the recently released 60th

Edition of the World Air Transport Statistics (WATS) the

yearbook of the airline industryrsquos performance

―Last year airlines safely carried 36 billion passengersmdashthe

equivalent of 48 of the Earthrsquos populationmdashand transported

522 million tonnes of cargo worth around $6 trillion In doing

so we supported some $27 trillion in economic activity and 63

million jobs said Tony Tyler IATArsquos Director General and CEO

httpwwwatnaero

ICAO Secretary General Partnership and Investment Crucial to

Sustainable Aviation Development in Africa

Significant contributions towards safe and secure air transport and the prosperity

and sustainability of African communities could be achieved if sufficient investment

is made towards the development of Africarsquos civil aviation capacities including

infrastructure and skilled human resources remarked ICAOrsquos Secretary General

during the Third ICAO Africa and Indian Ocean (AFI) Aviation Week in Malabo

Equatorial Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos greatest examples

today of what cooperation and commitment can deliver in terms of concrete civil

aviation progress Dr Liu highlighted ―ICAO has been working very hard to foster

this type of cooperation in every world region and we are tremendously grateful that

these comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial Guinea at the

African Union Conference Center in Malabo The wide ranging series of events

convened included the Third Africa-Indian Ocean (AFI) Aviation Safety and Security

Symposium the Second Human Resources Development Fund (HRDF) for Africa

Meeting the Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third Comprehensive

Regional Implementation Plan for Aviation Security and Facilitation in Africa (AFI

SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking stock of the

progress and status of regional safety targets set by the African Ministers of

Transport in 2012 Respective participants also reviewed the status of implementation

of ongoing initiatives and plans guiding effective cooperation on aviation safety

security and human resources development discussed the related outcomes from

recent African high-level meetings and Declarations and heard proposals on how the

specific work programmes under each area could be further improved in light of

latest data and developments

1

―The successful implementation of current Safety and Security priorities are

directly linked to States having the necessary human resources at their

disposal inclusive of the required qualifications competencies and experience

to address their responsibilities Dr Liu noted ―These issues are particularly

crucial for African States which are now experiencing significant traffic growth

whether due to increased international or domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable ICAOrsquos

many partnerships on the African continent have been to the achievement of

practical and sustainable civil aviation development commenting that ―in

supporting African States to meet their obligations under the Chicago

Convention the African Union Commission and the AU specialized agency the

African Civil Aviation Commission (AFCAC) as well as Regional Economic

Communities are sparing no effort as we continue to jointly assist national

governments in meeting global and regional targets in line with ICAOrsquos

Strategic Objectives Their support and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved level

of compliance with ICAOrsquos Standards and Recommended Practices )SARPs(

―We are seeing an increasing number of States with ICAO Universal Safety

Oversight Audit Programme Effective Implementation rates over 60 percent

and a diminishing number of outstanding Significant Safety Concerns These

are indeed very positive trends but they must continue to be improved upon

Dr Liu said

Since taking office Secretary General Liu has been advocating tirelessly with

ICAO Member States UN system agencies the donor community and all

relevant stakeholders on aviationrsquos relationship to successful sustainable

development planning and the attainment of the United Nations Agenda 2030

Sustainable Development Goals ―Effectively resourced and administered civil

aviation systems in States are essential to establishing air transportrsquos global

connectivity which in turn serves as a key catalyst for sustainable economic

and social development she commented adding that a fundamental

prerequisite for gaining access to air transportrsquos global connectivity and

opening up access to international markets and trade flows is a safe and secure

air transport system through effectively implementing SARPs and policies

2

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO assistance

activities aimed at improving safety and security oversight The occasion

was also used to release the Second Edition of the Annual Safety Report

of the RASG-AFI signing of the project document for membership of the

African Flight Procedure Programmes (AFPP) by two States aimed at

fostering PBN implementation and of an ICAO Technical Cooperation

Bureau project agreement on safety and security assistance with

Equatorial Guinea

ICAOrsquos 2016 AFI Aviation Week attracted over 200 participants from 35

States and 25 international and regional organizations

3

httpwwwatnaero

STAR ALLIANCE ROLLS OUT NEW CHECK-IN CONCEPT

AT TOKYO ndash NARITA AIRPORT TERMINAL 1Star Alliance has successfully completed the rollout of a new check-in

concept in the south wing at Tokyo ndash Narita Terminal 1 offering

customers a wider choice of check-in options and giving them more

control over this part of the travel process thereby creating time savings

To achieve this the layout of the check-in area was changed and

travellers will now find the check-in desks allocated by airline rather than

class of travel as was previously the case in Narita

This revised layout goes hand in hand with the installation of new self-

service check-in machines which in addition to issuing boarding passes

also print baggage tags This makes Star Alliance the first airline alliance

to offer international travellers from Japan the option of self-printing and

self-tagging

―Our initiative in Narita is part of our global strategy of reducing

operational complexities and striving for standardisation with the aim of

providing customers with a better travel experience said Mark Schwab

CEO Star Alliance ―Initial statistics show that the majority of travellers

are already making use of the new self-service option he continued

The 116 new common use kiosks form the backbone of the new concept

at Narita These allow customers to check-in for any of the 17 member

carriers - Air Canada Air China Air New Zealand ANA Austrian Asiana

Airlines Ethiopian Airlines EVA Air LOT Polish Airlines Lufthansa

Scandinavian Airlines Shenzhen Airlines Singapore Airlines SWISS

Turkish Airlines THAI and United - flying from Terminal 1 Passengers

with hand luggage only can proceed directly to the gate while those with

checked luggage can obtain the corresponding tag from the kiosk apply

it and then proceed to special baggage drop-off counters At present

three member airlines offer bag tag printing with the remaining 14

scheduled to do so by mid-July Full service check-in desks for First

Business and Star Alliance Gold customers as well as for Economy Class

passengers requiring additional support complete the offer

Currently 18 Star Alliance member carriers serve Narita providing

passengers the choice of 1300 weekly flights to 61 destinations in 24

countries

1

The changes implemented at Narita were driven by a combination of

reasons In terms of capacity with both the number of Star Alliance

carriers serving Narita and the passenger volume increasing additional

check-in space would have been needed This made the airport an ideal

location for implementing a new concept based on the experience

obtained during the London Heathrow Terminal 2 project There the

Alliance has succeeded in reducing the required check-in space by 20

as a result of the new check-in concept

In addition to Narita Star Alliance has made changes to the check-in

concept at Satildeo Paulo ndash Guarulhos and Los Angeles Tom Bradley

International Terminal based on the experience the Alliance made during

the Terminal 2 project at London ndash Heathrow Airport where a completely

new check-in concept was put into place There all Star Alliance member

airlines use the same check-in kiosks make use of common bag-drop

counters and even share Economy Class check-in desks Using the

success of the Terminal 2 project as a base the Alliance is enhancing the

customer experience at other airports around the globe implementing

various technological advances made in London In addition at a Chief

Executive Board Meeting held earlier this month in Zurich the member

carrier CEOs agreed to develop standardised processes for airport

passenger services covering off-airport and self-service check-in fast

bag drop technology at airports baggage self-tagging and automated

travel document validation As these standards are implemented these

will not only provide smoother service to the Alliancersquos customers but

also reduce infrastructure requirements and handling costs at all of the

1300 airports the Alliance is presently serving

2

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 10: Egyptair news 6 july 2016

httpwwwatnaero

ICAO Secretary General Partnership and Investment Crucial to

Sustainable Aviation Development in Africa

Significant contributions towards safe and secure air transport and the prosperity

and sustainability of African communities could be achieved if sufficient investment

is made towards the development of Africarsquos civil aviation capacities including

infrastructure and skilled human resources remarked ICAOrsquos Secretary General

during the Third ICAO Africa and Indian Ocean (AFI) Aviation Week in Malabo

Equatorial Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos greatest examples

today of what cooperation and commitment can deliver in terms of concrete civil

aviation progress Dr Liu highlighted ―ICAO has been working very hard to foster

this type of cooperation in every world region and we are tremendously grateful that

these comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial Guinea at the

African Union Conference Center in Malabo The wide ranging series of events

convened included the Third Africa-Indian Ocean (AFI) Aviation Safety and Security

Symposium the Second Human Resources Development Fund (HRDF) for Africa

Meeting the Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third Comprehensive

Regional Implementation Plan for Aviation Security and Facilitation in Africa (AFI

SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking stock of the

progress and status of regional safety targets set by the African Ministers of

Transport in 2012 Respective participants also reviewed the status of implementation

of ongoing initiatives and plans guiding effective cooperation on aviation safety

security and human resources development discussed the related outcomes from

recent African high-level meetings and Declarations and heard proposals on how the

specific work programmes under each area could be further improved in light of

latest data and developments

1

―The successful implementation of current Safety and Security priorities are

directly linked to States having the necessary human resources at their

disposal inclusive of the required qualifications competencies and experience

to address their responsibilities Dr Liu noted ―These issues are particularly

crucial for African States which are now experiencing significant traffic growth

whether due to increased international or domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable ICAOrsquos

many partnerships on the African continent have been to the achievement of

practical and sustainable civil aviation development commenting that ―in

supporting African States to meet their obligations under the Chicago

Convention the African Union Commission and the AU specialized agency the

African Civil Aviation Commission (AFCAC) as well as Regional Economic

Communities are sparing no effort as we continue to jointly assist national

governments in meeting global and regional targets in line with ICAOrsquos

Strategic Objectives Their support and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved level

of compliance with ICAOrsquos Standards and Recommended Practices )SARPs(

―We are seeing an increasing number of States with ICAO Universal Safety

Oversight Audit Programme Effective Implementation rates over 60 percent

and a diminishing number of outstanding Significant Safety Concerns These

are indeed very positive trends but they must continue to be improved upon

Dr Liu said

Since taking office Secretary General Liu has been advocating tirelessly with

ICAO Member States UN system agencies the donor community and all

relevant stakeholders on aviationrsquos relationship to successful sustainable

development planning and the attainment of the United Nations Agenda 2030

Sustainable Development Goals ―Effectively resourced and administered civil

aviation systems in States are essential to establishing air transportrsquos global

connectivity which in turn serves as a key catalyst for sustainable economic

and social development she commented adding that a fundamental

prerequisite for gaining access to air transportrsquos global connectivity and

opening up access to international markets and trade flows is a safe and secure

air transport system through effectively implementing SARPs and policies

2

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO assistance

activities aimed at improving safety and security oversight The occasion

was also used to release the Second Edition of the Annual Safety Report

of the RASG-AFI signing of the project document for membership of the

African Flight Procedure Programmes (AFPP) by two States aimed at

fostering PBN implementation and of an ICAO Technical Cooperation

Bureau project agreement on safety and security assistance with

Equatorial Guinea

ICAOrsquos 2016 AFI Aviation Week attracted over 200 participants from 35

States and 25 international and regional organizations

3

httpwwwatnaero

STAR ALLIANCE ROLLS OUT NEW CHECK-IN CONCEPT

AT TOKYO ndash NARITA AIRPORT TERMINAL 1Star Alliance has successfully completed the rollout of a new check-in

concept in the south wing at Tokyo ndash Narita Terminal 1 offering

customers a wider choice of check-in options and giving them more

control over this part of the travel process thereby creating time savings

To achieve this the layout of the check-in area was changed and

travellers will now find the check-in desks allocated by airline rather than

class of travel as was previously the case in Narita

This revised layout goes hand in hand with the installation of new self-

service check-in machines which in addition to issuing boarding passes

also print baggage tags This makes Star Alliance the first airline alliance

to offer international travellers from Japan the option of self-printing and

self-tagging

―Our initiative in Narita is part of our global strategy of reducing

operational complexities and striving for standardisation with the aim of

providing customers with a better travel experience said Mark Schwab

CEO Star Alliance ―Initial statistics show that the majority of travellers

are already making use of the new self-service option he continued

The 116 new common use kiosks form the backbone of the new concept

at Narita These allow customers to check-in for any of the 17 member

carriers - Air Canada Air China Air New Zealand ANA Austrian Asiana

Airlines Ethiopian Airlines EVA Air LOT Polish Airlines Lufthansa

Scandinavian Airlines Shenzhen Airlines Singapore Airlines SWISS

Turkish Airlines THAI and United - flying from Terminal 1 Passengers

with hand luggage only can proceed directly to the gate while those with

checked luggage can obtain the corresponding tag from the kiosk apply

it and then proceed to special baggage drop-off counters At present

three member airlines offer bag tag printing with the remaining 14

scheduled to do so by mid-July Full service check-in desks for First

Business and Star Alliance Gold customers as well as for Economy Class

passengers requiring additional support complete the offer

Currently 18 Star Alliance member carriers serve Narita providing

passengers the choice of 1300 weekly flights to 61 destinations in 24

countries

1

The changes implemented at Narita were driven by a combination of

reasons In terms of capacity with both the number of Star Alliance

carriers serving Narita and the passenger volume increasing additional

check-in space would have been needed This made the airport an ideal

location for implementing a new concept based on the experience

obtained during the London Heathrow Terminal 2 project There the

Alliance has succeeded in reducing the required check-in space by 20

as a result of the new check-in concept

In addition to Narita Star Alliance has made changes to the check-in

concept at Satildeo Paulo ndash Guarulhos and Los Angeles Tom Bradley

International Terminal based on the experience the Alliance made during

the Terminal 2 project at London ndash Heathrow Airport where a completely

new check-in concept was put into place There all Star Alliance member

airlines use the same check-in kiosks make use of common bag-drop

counters and even share Economy Class check-in desks Using the

success of the Terminal 2 project as a base the Alliance is enhancing the

customer experience at other airports around the globe implementing

various technological advances made in London In addition at a Chief

Executive Board Meeting held earlier this month in Zurich the member

carrier CEOs agreed to develop standardised processes for airport

passenger services covering off-airport and self-service check-in fast

bag drop technology at airports baggage self-tagging and automated

travel document validation As these standards are implemented these

will not only provide smoother service to the Alliancersquos customers but

also reduce infrastructure requirements and handling costs at all of the

1300 airports the Alliance is presently serving

2

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 11: Egyptair news 6 july 2016

―The successful implementation of current Safety and Security priorities are

directly linked to States having the necessary human resources at their

disposal inclusive of the required qualifications competencies and experience

to address their responsibilities Dr Liu noted ―These issues are particularly

crucial for African States which are now experiencing significant traffic growth

whether due to increased international or domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable ICAOrsquos

many partnerships on the African continent have been to the achievement of

practical and sustainable civil aviation development commenting that ―in

supporting African States to meet their obligations under the Chicago

Convention the African Union Commission and the AU specialized agency the

African Civil Aviation Commission (AFCAC) as well as Regional Economic

Communities are sparing no effort as we continue to jointly assist national

governments in meeting global and regional targets in line with ICAOrsquos

Strategic Objectives Their support and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved level

of compliance with ICAOrsquos Standards and Recommended Practices )SARPs(

―We are seeing an increasing number of States with ICAO Universal Safety

Oversight Audit Programme Effective Implementation rates over 60 percent

and a diminishing number of outstanding Significant Safety Concerns These

are indeed very positive trends but they must continue to be improved upon

Dr Liu said

Since taking office Secretary General Liu has been advocating tirelessly with

ICAO Member States UN system agencies the donor community and all

relevant stakeholders on aviationrsquos relationship to successful sustainable

development planning and the attainment of the United Nations Agenda 2030

Sustainable Development Goals ―Effectively resourced and administered civil

aviation systems in States are essential to establishing air transportrsquos global

connectivity which in turn serves as a key catalyst for sustainable economic

and social development she commented adding that a fundamental

prerequisite for gaining access to air transportrsquos global connectivity and

opening up access to international markets and trade flows is a safe and secure

air transport system through effectively implementing SARPs and policies

2

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO assistance

activities aimed at improving safety and security oversight The occasion

was also used to release the Second Edition of the Annual Safety Report

of the RASG-AFI signing of the project document for membership of the

African Flight Procedure Programmes (AFPP) by two States aimed at

fostering PBN implementation and of an ICAO Technical Cooperation

Bureau project agreement on safety and security assistance with

Equatorial Guinea

ICAOrsquos 2016 AFI Aviation Week attracted over 200 participants from 35

States and 25 international and regional organizations

3

httpwwwatnaero

STAR ALLIANCE ROLLS OUT NEW CHECK-IN CONCEPT

AT TOKYO ndash NARITA AIRPORT TERMINAL 1Star Alliance has successfully completed the rollout of a new check-in

concept in the south wing at Tokyo ndash Narita Terminal 1 offering

customers a wider choice of check-in options and giving them more

control over this part of the travel process thereby creating time savings

To achieve this the layout of the check-in area was changed and

travellers will now find the check-in desks allocated by airline rather than

class of travel as was previously the case in Narita

This revised layout goes hand in hand with the installation of new self-

service check-in machines which in addition to issuing boarding passes

also print baggage tags This makes Star Alliance the first airline alliance

to offer international travellers from Japan the option of self-printing and

self-tagging

―Our initiative in Narita is part of our global strategy of reducing

operational complexities and striving for standardisation with the aim of

providing customers with a better travel experience said Mark Schwab

CEO Star Alliance ―Initial statistics show that the majority of travellers

are already making use of the new self-service option he continued

The 116 new common use kiosks form the backbone of the new concept

at Narita These allow customers to check-in for any of the 17 member

carriers - Air Canada Air China Air New Zealand ANA Austrian Asiana

Airlines Ethiopian Airlines EVA Air LOT Polish Airlines Lufthansa

Scandinavian Airlines Shenzhen Airlines Singapore Airlines SWISS

Turkish Airlines THAI and United - flying from Terminal 1 Passengers

with hand luggage only can proceed directly to the gate while those with

checked luggage can obtain the corresponding tag from the kiosk apply

it and then proceed to special baggage drop-off counters At present

three member airlines offer bag tag printing with the remaining 14

scheduled to do so by mid-July Full service check-in desks for First

Business and Star Alliance Gold customers as well as for Economy Class

passengers requiring additional support complete the offer

Currently 18 Star Alliance member carriers serve Narita providing

passengers the choice of 1300 weekly flights to 61 destinations in 24

countries

1

The changes implemented at Narita were driven by a combination of

reasons In terms of capacity with both the number of Star Alliance

carriers serving Narita and the passenger volume increasing additional

check-in space would have been needed This made the airport an ideal

location for implementing a new concept based on the experience

obtained during the London Heathrow Terminal 2 project There the

Alliance has succeeded in reducing the required check-in space by 20

as a result of the new check-in concept

In addition to Narita Star Alliance has made changes to the check-in

concept at Satildeo Paulo ndash Guarulhos and Los Angeles Tom Bradley

International Terminal based on the experience the Alliance made during

the Terminal 2 project at London ndash Heathrow Airport where a completely

new check-in concept was put into place There all Star Alliance member

airlines use the same check-in kiosks make use of common bag-drop

counters and even share Economy Class check-in desks Using the

success of the Terminal 2 project as a base the Alliance is enhancing the

customer experience at other airports around the globe implementing

various technological advances made in London In addition at a Chief

Executive Board Meeting held earlier this month in Zurich the member

carrier CEOs agreed to develop standardised processes for airport

passenger services covering off-airport and self-service check-in fast

bag drop technology at airports baggage self-tagging and automated

travel document validation As these standards are implemented these

will not only provide smoother service to the Alliancersquos customers but

also reduce infrastructure requirements and handling costs at all of the

1300 airports the Alliance is presently serving

2

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 12: Egyptair news 6 july 2016

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO assistance

activities aimed at improving safety and security oversight The occasion

was also used to release the Second Edition of the Annual Safety Report

of the RASG-AFI signing of the project document for membership of the

African Flight Procedure Programmes (AFPP) by two States aimed at

fostering PBN implementation and of an ICAO Technical Cooperation

Bureau project agreement on safety and security assistance with

Equatorial Guinea

ICAOrsquos 2016 AFI Aviation Week attracted over 200 participants from 35

States and 25 international and regional organizations

3

httpwwwatnaero

STAR ALLIANCE ROLLS OUT NEW CHECK-IN CONCEPT

AT TOKYO ndash NARITA AIRPORT TERMINAL 1Star Alliance has successfully completed the rollout of a new check-in

concept in the south wing at Tokyo ndash Narita Terminal 1 offering

customers a wider choice of check-in options and giving them more

control over this part of the travel process thereby creating time savings

To achieve this the layout of the check-in area was changed and

travellers will now find the check-in desks allocated by airline rather than

class of travel as was previously the case in Narita

This revised layout goes hand in hand with the installation of new self-

service check-in machines which in addition to issuing boarding passes

also print baggage tags This makes Star Alliance the first airline alliance

to offer international travellers from Japan the option of self-printing and

self-tagging

―Our initiative in Narita is part of our global strategy of reducing

operational complexities and striving for standardisation with the aim of

providing customers with a better travel experience said Mark Schwab

CEO Star Alliance ―Initial statistics show that the majority of travellers

are already making use of the new self-service option he continued

The 116 new common use kiosks form the backbone of the new concept

at Narita These allow customers to check-in for any of the 17 member

carriers - Air Canada Air China Air New Zealand ANA Austrian Asiana

Airlines Ethiopian Airlines EVA Air LOT Polish Airlines Lufthansa

Scandinavian Airlines Shenzhen Airlines Singapore Airlines SWISS

Turkish Airlines THAI and United - flying from Terminal 1 Passengers

with hand luggage only can proceed directly to the gate while those with

checked luggage can obtain the corresponding tag from the kiosk apply

it and then proceed to special baggage drop-off counters At present

three member airlines offer bag tag printing with the remaining 14

scheduled to do so by mid-July Full service check-in desks for First

Business and Star Alliance Gold customers as well as for Economy Class

passengers requiring additional support complete the offer

Currently 18 Star Alliance member carriers serve Narita providing

passengers the choice of 1300 weekly flights to 61 destinations in 24

countries

1

The changes implemented at Narita were driven by a combination of

reasons In terms of capacity with both the number of Star Alliance

carriers serving Narita and the passenger volume increasing additional

check-in space would have been needed This made the airport an ideal

location for implementing a new concept based on the experience

obtained during the London Heathrow Terminal 2 project There the

Alliance has succeeded in reducing the required check-in space by 20

as a result of the new check-in concept

In addition to Narita Star Alliance has made changes to the check-in

concept at Satildeo Paulo ndash Guarulhos and Los Angeles Tom Bradley

International Terminal based on the experience the Alliance made during

the Terminal 2 project at London ndash Heathrow Airport where a completely

new check-in concept was put into place There all Star Alliance member

airlines use the same check-in kiosks make use of common bag-drop

counters and even share Economy Class check-in desks Using the

success of the Terminal 2 project as a base the Alliance is enhancing the

customer experience at other airports around the globe implementing

various technological advances made in London In addition at a Chief

Executive Board Meeting held earlier this month in Zurich the member

carrier CEOs agreed to develop standardised processes for airport

passenger services covering off-airport and self-service check-in fast

bag drop technology at airports baggage self-tagging and automated

travel document validation As these standards are implemented these

will not only provide smoother service to the Alliancersquos customers but

also reduce infrastructure requirements and handling costs at all of the

1300 airports the Alliance is presently serving

2

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 13: Egyptair news 6 july 2016

httpwwwatnaero

STAR ALLIANCE ROLLS OUT NEW CHECK-IN CONCEPT

AT TOKYO ndash NARITA AIRPORT TERMINAL 1Star Alliance has successfully completed the rollout of a new check-in

concept in the south wing at Tokyo ndash Narita Terminal 1 offering

customers a wider choice of check-in options and giving them more

control over this part of the travel process thereby creating time savings

To achieve this the layout of the check-in area was changed and

travellers will now find the check-in desks allocated by airline rather than

class of travel as was previously the case in Narita

This revised layout goes hand in hand with the installation of new self-

service check-in machines which in addition to issuing boarding passes

also print baggage tags This makes Star Alliance the first airline alliance

to offer international travellers from Japan the option of self-printing and

self-tagging

―Our initiative in Narita is part of our global strategy of reducing

operational complexities and striving for standardisation with the aim of

providing customers with a better travel experience said Mark Schwab

CEO Star Alliance ―Initial statistics show that the majority of travellers

are already making use of the new self-service option he continued

The 116 new common use kiosks form the backbone of the new concept

at Narita These allow customers to check-in for any of the 17 member

carriers - Air Canada Air China Air New Zealand ANA Austrian Asiana

Airlines Ethiopian Airlines EVA Air LOT Polish Airlines Lufthansa

Scandinavian Airlines Shenzhen Airlines Singapore Airlines SWISS

Turkish Airlines THAI and United - flying from Terminal 1 Passengers

with hand luggage only can proceed directly to the gate while those with

checked luggage can obtain the corresponding tag from the kiosk apply

it and then proceed to special baggage drop-off counters At present

three member airlines offer bag tag printing with the remaining 14

scheduled to do so by mid-July Full service check-in desks for First

Business and Star Alliance Gold customers as well as for Economy Class

passengers requiring additional support complete the offer

Currently 18 Star Alliance member carriers serve Narita providing

passengers the choice of 1300 weekly flights to 61 destinations in 24

countries

1

The changes implemented at Narita were driven by a combination of

reasons In terms of capacity with both the number of Star Alliance

carriers serving Narita and the passenger volume increasing additional

check-in space would have been needed This made the airport an ideal

location for implementing a new concept based on the experience

obtained during the London Heathrow Terminal 2 project There the

Alliance has succeeded in reducing the required check-in space by 20

as a result of the new check-in concept

In addition to Narita Star Alliance has made changes to the check-in

concept at Satildeo Paulo ndash Guarulhos and Los Angeles Tom Bradley

International Terminal based on the experience the Alliance made during

the Terminal 2 project at London ndash Heathrow Airport where a completely

new check-in concept was put into place There all Star Alliance member

airlines use the same check-in kiosks make use of common bag-drop

counters and even share Economy Class check-in desks Using the

success of the Terminal 2 project as a base the Alliance is enhancing the

customer experience at other airports around the globe implementing

various technological advances made in London In addition at a Chief

Executive Board Meeting held earlier this month in Zurich the member

carrier CEOs agreed to develop standardised processes for airport

passenger services covering off-airport and self-service check-in fast

bag drop technology at airports baggage self-tagging and automated

travel document validation As these standards are implemented these

will not only provide smoother service to the Alliancersquos customers but

also reduce infrastructure requirements and handling costs at all of the

1300 airports the Alliance is presently serving

2

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 14: Egyptair news 6 july 2016

The changes implemented at Narita were driven by a combination of

reasons In terms of capacity with both the number of Star Alliance

carriers serving Narita and the passenger volume increasing additional

check-in space would have been needed This made the airport an ideal

location for implementing a new concept based on the experience

obtained during the London Heathrow Terminal 2 project There the

Alliance has succeeded in reducing the required check-in space by 20

as a result of the new check-in concept

In addition to Narita Star Alliance has made changes to the check-in

concept at Satildeo Paulo ndash Guarulhos and Los Angeles Tom Bradley

International Terminal based on the experience the Alliance made during

the Terminal 2 project at London ndash Heathrow Airport where a completely

new check-in concept was put into place There all Star Alliance member

airlines use the same check-in kiosks make use of common bag-drop

counters and even share Economy Class check-in desks Using the

success of the Terminal 2 project as a base the Alliance is enhancing the

customer experience at other airports around the globe implementing

various technological advances made in London In addition at a Chief

Executive Board Meeting held earlier this month in Zurich the member

carrier CEOs agreed to develop standardised processes for airport

passenger services covering off-airport and self-service check-in fast

bag drop technology at airports baggage self-tagging and automated

travel document validation As these standards are implemented these

will not only provide smoother service to the Alliancersquos customers but

also reduce infrastructure requirements and handling costs at all of the

1300 airports the Alliance is presently serving

2

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 15: Egyptair news 6 july 2016

httpwwwatnaero

QATAR AIRWAYS CELEBRATES A WEEKEND OF

CAPACITY UPGRADES AROUND THE WORLD

Qatar Airways celebrated capacity increases across its global network this

weekend as three of the airlinersquos destinations received upgraded aircraft

commencing 1 July the same day upon which the worldrsquos best airline also

inaugurated its new route offering to Marrakesh with a Boeing 787

Dreamliner

Guangzhou (China) Geneva (Switzerland) and Warsaw (Poland) all

received new aircraft types on their respective daily flights from Doharsquos

Hamad International Airport in recognition of continued demand for Qatar

Airways service operated by the worldrsquos newest aircraft types and

expanding fleet

Qatar Airways Group Chief Executive His Excellency Mr Akbar Al Baker

said ――Qatar Airways is delighted to enhance the aircraft that serve the

important destinations of Guangzhou Geneva and Warsaw almost

doubling the daily capacity across all of these routes from Doharsquos Hamad

International Airport This is testament to our commitment to provide our

passengers with the greatest comfort on board the worldrsquos most modern

and efficient aircraft while illustrating our confidence in the popularity of

these cities as a place to visit and do business

The inaugural A380 flight to Guangzhou was met with a warm welcome as it

touched down for the first time and now represents the airlinersquos fouth A380

destination after Bangkok London and Paris Qatar Airways became the

first Middle East airline to fly to Guangzhou in 2008 with a Boeing 777

The A380 is spread across twin decks in a tri-class configuration of eight

seats in First Class 48 seats in Business Class and 461 in Economy Class

and will serve Guangzhou Baiyun International Airport the third busiest

airport in China and the city of Guangzhou on the Pearl River Delta home

to 57 million people

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 16: Egyptair news 6 july 2016

httpwwwatnaero

Over 300 flight cancellations during todayrsquos Air Traffic

Control strike in France

ndash More than 200000 passengers will have their flights and holidays

delayed or cancelled during 13th strike in 2016

ndash ATC strikes cost up to euro95 billion of European Unionrsquos GDP associated

with 131000 jobs over the last six years

Thousands of European passengers will see their travel plans disrupted

again with another air traffic control )ATC( strike in Europe Todayrsquos

industrial action (5 July) in France hits European passengers during the

busiest month of the year when millions of holiday makers take off to

Southern Europe The strike is expected to last for 35 hours and will see

more than 300 flight cancellations ndash delays and time-consuming detours

not included Later this month another strike will hit Italy with hundreds of

flights at risk of being cancelled

―Just last week we released a new study on the economic impact of ATC

strikes in Europe The analysis revealed that between 2010-15 the overall

impact of these strikes reduced European Union GDP up to euro95 billion

Southern European states suffer more than others from ATC strikes

because passengers are unable to reach their holiday destination The EU

Commission needs to put the tourism sector back into the spotlight to

prevent the holidays of European families being spoilt by these strikes

which cause major disruption for passengers said Thomas Reynaert

Managing Director of A4E

During the same 2010-15 period there were 167 ATC strike days in the EU ndash

one disrupted day every 13 days In total there were 213 disrupted days if

you take into account the days before and after an ATC strike as flights

had to be cancelled proactively in advance and accumulated delays spilt

over to the next day

The latest ATC strikes in Greece Italy Belgium and France since March

this year caused over 3500 cancellations among A4E members and more

than one million minutes of delay (more than 16000 hours) across all

airlines operating in European airspace

Across the EU ATC strikes occur the most frequently in France followed

by Greece Italy and Portugal and resulted in 30000 cancellations and

more than 6 million minutes of delay among A4E airlines (2010-15)

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 17: Egyptair news 6 july 2016

httpwwwatnaero

Lufthansa and UFO negotiate long-term no-strike agreement

Both parties accept recommendation of mediator Matthias Platzeck middot new

system for pensions and transitional payments agreement active until end

of 2023 middot 1 wage increase on 1 October 2016 and additional 2 increase

effective 1 January 2018 agreement in effect until 30 June 2019 middot new

qualification-based compensation structure middot cost monitoring until 2023 in

order to ensure sustainable reduction of unit cost middot conflict resolution

mechanisms until 2023 middot guaranteed employment for all cabin crew until

2021

On 5 July in Berlin Lufthansa and the independent flight attendantsrsquo

organisation UFO have announced that they are accepting the mediatorrsquos

recommendation by former Brandenburg Prime Minister Matthias Platzeck

The parties had previously spent approximately half a year negotiating all

open collective bargaining agreements and a wide range of other issues

―Reaching a comprehensive agreement and ensuring that there is no need

for cabin strikes in the years ahead was tremendously important for

Lufthansa and all our colleagues in the cabin alike― says Dr Bettina

Volkens Chief Human Resources and Legal Officer of Deutsche Lufthansa

AG ―The new system for pensions and transitional payments in particular

is an important step towards future-proofing our company At the same

time we are able to continue offering our employees an attractive

compensation package Volkens added

The details of the arbitration agreement

Long-term no-strike agreement

The collective labour agreement will be active until 30 June 2019 the

collective agreements regarding pensions and transitional payments will

be active until 2023 In addition to this the parties have also agreed upon a

number of conflict resolution mechanisms which will remain in place until

2023 The company can for example appeal to a mediator when a total

strike is announced thereby converting a possible labour conflict into a

mandatory arbitration process

1

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 18: Egyptair news 6 july 2016

Pensions and transitional payments

Lufthansa and UFO have agreed upon a new system regarding

pensions and transitional payments It allows the group to shift the

second-largest group of employees from a defined-benefit system to a

defined-contribution system Lufthansa and Verdi had already agreed

last November to move ground staff to a defined-contribution system

This switch ndash from a fixed predefined benefit outlined in the pension

scheme to a fixed premium which then bears interest on the capital

market ndash allows the company to lower the costs and risks for the

schemes In future Lufthansa will contribute a total of 52 percent of

eligible income to the pension schemes of cabin staff This is the same

benefit the ground staff of the group receive Claims that have already

been acquired in the company pension scheme at the time of the

transition to the defined-contribution system will be retained in full

The new system still makes it possible for cabin staff to retire from

airline service when they turn 55 New employees will receive no

contributions to pension and transitional payment schemes for the first

five years of their employment unless they have completed a specific

training course on the bachelor level New employees will not receive

contributions to the transitional payment scheme even after five years

if they do not complete this training In future employees can use

unused transitional payment schemes to increase the benefits of their

company pension scheme Coverage for all employees in case of

permanent flight disability will remain in place The collective labour

agreement will be active for 10 years as of 1 January 2014

Compensation

The circa 19000 cabin employees will receive a wage increase of one

percent as of 1 October 2016 and an additional two percent as of 1

January 2018 The collective labour agreement for wages will remain in

place until 30 June 2019

2

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 19: Egyptair news 6 july 2016

Compensation structure

Lufthansa and UFO have agreed on a new qualification-based

compensation structure for cabin staff The company will offer an

eighteen-month training course at the bachelor level in cooperation with

the Chamber of Industry and Commerce This will allow Lufthansa to

further increase the already high standard of qualification and service

of its staff In future only flight attendants who have completed this

training will be eligible for compensation above level eight which

corresponds to a basic compensation of 2150 Euros per month

Sustainable strengthening of competitive position through cost

monitoring

Together Lufthansa and UFO have defined a target corridor for cabin

personnel costs Personnel costs are to be lowered by ten percent per

block hour compared to the currently projected development

Guaranteed Employment

Employment is guaranteed for all Lufthansa cabin employees until 2021

as the company has ruled out redundancies for the duration of five

years In addition it has been agreed that Lufthansa airplanes may not

be operated with external cabin staff until 2023 Lufthansa offers good

job prospects in the cabin in any case The company already

announced in January that it intends to hire 1400 new flight attendants

this year

―We would like to thank Matthias Platzeck for his support Together with

him and UFO we have managed to reach a solution at the bargaining

table out of the public eye says Volkens ―It was a struggle to reach an

agreement in which it was necessary for both sides to make cutbacks

from their original position The current compromise demonstrates that

the effort was worthwhile

―Mr Platzeck managed very neatly to bring our diverging interests

together in the best possible way Lufthansa has achieved economic

and political security without taking anything away from individual

employees at any point says Nicoley Baublies the unionrsquos chief

negotiator

3

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 20: Egyptair news 6 july 2016

―The opportunity for the economic growth of the company as well as the

preservation of individual rights and adequate circumstances for the flight

attendants are the foundation on which this arbitration result rests I am

very thankful to both parties for moving closer together over the course of

the negotiations and for managing to build up trust toward each other It

was an important requirement for both sides to understand the respective

motivations for the argumentation of the other party without the burden of

prejudice They agreed on mechanisms going forward that should in the

spirit of trust offer protection from a renewed hardening of the situation

and not put any strain on customers staff and shareholders emphasises

Matthias Platzeck former Prime Minister of Brandenburg

4

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 21: Egyptair news 6 july 2016

httpscafinanceyahoocom

Lufthansa cabin crew agree pension changes cost cuts

BERLIN (Reuters) - Lufthansa and its main cabin crew union have agreed

a new 35 year pay deal for 19000 staff plus a change in pensions

ending an industrial dispute that caused the longest strike in the

carriers history

Although Lufthansa still has a long-running row with pilots on its hands

the agreement with cabin crew announced on Tuesday will allow it to

reduce staff costs and move ahead with its plans for budget unit

Eurowings

Lufthansa has been trying to cut costs but its plan to revamp pensions

and expand low-cost operations ran into resistance from its two main

staff groups leading to repeated strikes and souring relations between

management and unions

The new cabin crew deal negotiated by a mediator includes a pay rise of

almost 55 percent from Jan 2016 to June 2019 plus a one-off payment

of 3000 euros ($3344) which has already been paid Lufthansa ruled out

compulsory redundancies for five years

Among the 20 different contracts agreed via a mediation process was the

agreement of a defined contribution pension scheme rather than a

defined benefit scheme in line with what many other major European

companies have done

Overall the agreement which also includes flexible contracts to better

cover seasonal demand will allow Lufthansa to bring staff costs for

cabin crew down by about 10 percent compared to previous projections

Bettina Volkens Lufthansa board member for HR told journalists

The changes to the pension scheme should save Lufthansa around 70

million euros a year a person familiar with the talks said

1

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 22: Egyptair news 6 july 2016

Its a good deal for the staff and for the company said Nicoley

Baublies who led the talks for the union

Attention now turns to negotiations with pilots union Vereinigung

Cockpit for which Lufthansa also wants to agree a defined contribution

pension deal Lufthansa CEO Carsten Spohr said on Monday he was

optimistic for those talks and when it came to costs Lufthansa was

doing what it could

(Reporting by Victoria Bryan Additional reporting by Peter Maushagen

and Klaus Lauer Editing by Arno Schuetze and

The deal includes a scheme to avoid conflict in the future such as the

right for the company to call a mediator should a major strike be

threatened A contract for budget unit Eurowings was also agreed

including permanent contracts with the option to switch to the main

Lufthansa brand and a pension scheme

Georgina Prodhan)

2

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 23: Egyptair news 6 july 2016

httpmatwonlinecom

Aegean Airlines and TAP Portugal join Airlines for Europe

Greek carrier Aegean Airlines and Portuguese flag carrier TAP Portugal

have become the latest airlines to join lobby group Airlines for Europe

(A4E)

A4E launched in January 2016 with the support of founding members

Air France-KLM UK budget carrier easyJet International Airlines

Group Lufthansa Group and Irish low-cost carrier Ryanair

Since then it has attracted Finnair UK leisure airline Jet2com

Norwegian and Spanish budget carrier Volotea with Aegean Airlines

and TAP Portugal becoming the latest to join A4E in June

This takes Brussels-based A4Ersquos representation to more than 500

million annual passengers and more than 60 of the continentrsquos

passenger journeys

A4Ersquos member airlines have a combined fleet of more than 2500

aircraft and generate euro97 billion ($108 billion) in annual turnover

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 24: Egyptair news 6 july 2016

httpwwwdailystarcouk

EgyptAir crash solved Black box reveals crews fight for life as

fire broke out

INVESTIGATORS have taken a huge step closer to solving the mystery

EgyptAir crash as black box recordings revealed efforts to put a fire out

Sources say the repaired flight deck recorder indicates that a blaze took

hold of the plan during its final moments

The Airbus A320 plunged into the eastern Mediterranean en route from

Paris to Cairo on May 19 killing all 66 people on board

The cause of the crash remains unknown

It has previously been reported that smoke filled the cockpit during its final

moments with rescue teams starting to find human remains on the sea

bed

1

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 25: Egyptair news 6 july 2016

Forensics are carrying out DNA tests to identify the victims

Wreckage from the jetrsquos front section also showed signs of high

temperature damage and soot

The flight deck recordings usually capture pilot conversations and any

cockpit alarms as well as clues such as engine noise

The EgyptAir recorder has been repaired in France and taken to Egypt

Investigators are to conduct further analysis on the voices and have

not ruled out any possibilities as to what caused the crash

Paris prosecutors have opened a manslaughter investigation saying

last week that it was not looking into terrorism as a possible cause

The plane was carrying 56 passengers and 10 crew when it crashed

including 40 Egyptians 15 French citizens two Iraqis two Canadians

and one passenger each from Algeria Belgium Britain Chad Portugal

Saudi Arabia and Sudan

Since the crash small pieces of the wreckage and human remains

have been recovered while the bulk of the plane and the bodies of

victims are believed to be under the sea

2

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 26: Egyptair news 6 july 2016

httpswwwthestreetcom

One Reason Why American Airlines (AAL) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are

declining 184 to $2879 in late-afternoon trading on Tuesday as

concerns about the fallout from Britains decision to leave the European

Union persist

The International Air Transport Association (IATA) estimates that the

number of UK air passengers could fall between 3 and 5 by 2020

driven by the anticipated economic downturn and decline in the sterling

exchange rate

But Cowen noted that the US should experience an uptick in domestic

traffic if people are afraid to travel internationally Barrons reports

Additionally rival airline operator Delta Air Lines (DAL) announced earlier

today that consolidated passenger unit revenue in June dropped 5 from

a year ago partly due to continued weakness in foreign currencies

Separately TheStreet Ratings team rates the stock as a hold with a

ratings score of C-

American Airlines strengths such as its notable return on equity and

good cash flow from operations However as a counter to these

strengths we also find weaknesses including unimpressive growth in net

income generally higher debt management risk and a generally

disappointing performance in the stock itself

You can view the full analysis from the report here AAL

TheStreet Ratings objectively rated this stock according to its risk-

adjusted total return prospect over a 12-month investment horizon Not

based on the news in any given day the rating may differ from Jim

Cramers view or that of this articles author

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 27: Egyptair news 6 july 2016

httpwwwthenationalae

Emirates chief sees little benefit from EU-level aviation deals

The chief of Dubai-based airline Emirates expressed doubts on Monday

that an EU-level aviation agreement with the UAE would improve on the

existing deals the Gulf country has with most EU countries

In June European member states gave the executive European

Commission a mandate to pursue air traffic agreements with the UAE

Qatar Turkey and countries in southeast Asia to try to support the

European aviation sector

Such agreements now often done on a bilateral basis by individual

governments would set out where and how often foreign airlines could

fly into the EU and vice versa

But the initiative has been eyed with suspicion by Gulf carriers such as

Emirates Etihad and Qatar Airways who have faced accusations of

receiving unfair state subsidies from European legacy airlines notably

Lufthansa and Air France KLM as well as major US ones The Gulf

airlines have firmly rejected the allegations

―It is in the view of Emirates that we have more in the current agreements

than we anticipate the mandate giving us Emirates president Tim Clark

told Reuters

He added that he had not seen the mandate and therefore could be

wrong ―but we have a very high bar and I guess the government and the

airlines would be interested to know how the mandate would improve

that

1

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 28: Egyptair news 6 july 2016

An EU source has said that the flying rights in the mandates for Qatar

and the UAE are more restrictive than those for the Association of

Southeast Asian Nations (ASEAN)

Europersquos aviation industry has been bitten by the rapid expansion of

carriers from the Gulf region as well as shifting traffic flows to Asia

France and Germany have led the charge for EU-level agreements as a

way to ensure fair competition on the European market but some see

that as thinly veiled protectionism

―We get a parade of ministers asking us from various states within the

EU to extend our operations to countries beyond their countries Mr

Clark said

―So wersquore a little bit perplexed as to why you would try to change this

and introduce levels of complexity but it is for the government of UAE to

respond

Mr Clark said he was worried that Brexit might hit demand following

Britainrsquos historic vote to leave the 28-nation bloc compounding

heightened security fears since suicide bombing attacks on airports in

Brussels and Istanbul

―What yoursquore seeing is consumer confidence constantly being eroded

This predated Brexit but Brexit hasnrsquot helped he said

―We have $120-150 billion worth of aircraft coming down the lines Irsquod

like to think that Irsquom going to be able to take all those airplanes and get

some stability in the market and get demand kick-started

2

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 29: Egyptair news 6 july 2016

httpaircargoworldcom

IATA WATS Top five carrier ranks unchanged despite slow year

The annual IATA World Air Transport Statistics (WATS) report released today revealed a

16 percentage-point decrease in the worldwide freight load factor to 474 percent

IATArsquos industry performance statistics for 2015 were based on a total of 2142 billion

freight tonne kilometers (FTKs) ndash up 23 percent year-over-year ndash against a capacity of

2542 billion available FTKs (a 58 percent increase) flown over the course of the year

These statistics add to a growing body of evidence that air cargo is in the doldrums

Ranked by total freight tonnes carried FedEx was the clear market leader with 71

million tonnes carried last year The integrator held onto its top spot despite a 14

percent decrease in demand to 158 billion scheduled FTKs In a distant second place

UPS carried 45 million tonnes Emirates Airlines carried the third-largest total cargo at

25 million tonnes followed by Cathay Pacific Airlines at 16 million tonnes and

Korean Air with 15 million tonnes

The major freight routes in 2015 largely serviced markets in the Northern Hemisphere

The North America-Asia route saw the most FTKs constituting 212 percent of the

global market Europe-Asia was another busy route accounting for a close-second

199 percent of air cargo in 2015 Another major route was the transatlantic Europe-

North America route at 101 percent

While the top-five air cargo carriers all held on to the positions that they held in 2014

there were interesting moves elsewhere in the rankings Qatar Airways Polar Air Cargo

and AirBridgeCargo Airlines were big winners moving up two seven and five points

respectively in the top-25 rankings for FTKs flown

Qatar Airways which moved into the number-six spot increased its FTKs by more than

16 billion flying 76 billion in 2015 Polar Air Cargo and AirBridgeCargo Airlines also

both added more than a billion FTKs to their books flying 418 billion and 406 billion

respectively

British Airways however was a major loser in the rankings falling 3 percentage points

63 percent y-o-y EVA Air also fell four spots with an FTK decrease of 62 percent Air

France also took a hit with a 107 percent reduction in demand to 34 billion FTK

Tags air cargo airbridgecargo airlines British Airways World Cargo europe FedEx

Express global economy IATA Qatar Airways Cargo

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 30: Egyptair news 6 july 2016

httpwwwdailymailcouk

Bad weather holds up Indian Ocean search for missing Malaysia

MH370 aircraft

SYDNEY July 6 (Reuters) - Adverse weather has caused a delay of up to

eight weeks in the Indian Ocean search for missing Malaysia Airlines

flight MH370 search officials said on Wednesday pushing the hunt well

beyond an expected conclusion date of mid-2016

The jet carrying 239 passengers and crew disappeared enroute from

Kuala Lumpur to Beijing on March 8 2014 in one of aviations great

mysteries A wing part known as a flaperon washed up on the French

island of Reunion in July 2015

Crash investigators have otherwise confirmed no other trace of the

plane An undersea search of the southern Indian Ocean historys

costliest such effort has turned up nothing

Poor weather conditions have severely impacted search operations

the Joint Agency Coordination Centre in charge of the search said in a

statement

Progress has slowed with only a minimal area searched since the start

of the southern hemisphere winter it added

The search has covered 110000 sq km (42000 sq miles) of ocean floor

leaving just 10000 sq km (3800 sq miles) unchecked said the agency

which represents the Australian Malaysian and Chinese authorities

spearheading the effort

The poor weather will permit some use of deep tow equipment but an

autonomous underwater vehicle that surveys the most difficult stretches

can only be launched in the calmer conditions of spring and summer the

agency added

If the weather remains hostile or equipment fails the search may

continue well beyond the winter months it said

The agency had originally expected to wrap up its search of about

120000 sq km (46000 sq miles) of ocean floor in mid-2016 (Reporting by

Byron Kaye Editing by Clarence Fernandez)

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 31: Egyptair news 6 july 2016

httpsglobalhandelsblattcom

When Lufthansa launched Eurowings last year it had high hopes for its

new low-cost subsidiary

It will ―become Europersquos third-largest discount carrier and successfully

face the growing competition Lufthansa chief executive Carsten Spohr

exulted as recently as last month at the annual International Air Transport

Association meeting in Dublin

Germanyrsquos largest airline started rolling out Eurowings last fall to compete

against budget carriers such as Ryanair and EasyJet in Europe and state-

backed Gulf airlines including Etihad and Emirates It was supposed to

finally provide lethargic Lufthansa with tempo and a spirit of positive

change mdash and at the same time boost growth through ventures with other

airlines

Trying to turn the low-cost subsidiary into Europersquos third-

largest budget carrier is proving harder than parent Lufthansa

expected Chief executive Carsten Spohr nevertheless sticks to

the airlines profit target

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 32: Egyptair news 6 july 2016

httpwwwstattimescom

Kenya Airways appoints Jan de Vegt as new COO

July 05 2016 Kenya Airways has appointed Jan de Vegt as the airlinersquos

chief operating officer from August 1 2016

He replaces Yves Guibert who will leave the business at the end of July

2016 Jan joins the airline from Cobalt Ground Solutions in the UK where he

is currently the managing director

He has been at the senior managerial level for the last 22 years

Jan has held positions in cargo operations at the Air France-KLM Group

including being regional director operations Benelux UK and Ireland

regional director South East Asia and Australia vice president Asia for Air

France KLM Cargo and Martinair Cargo

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 33: Egyptair news 6 july 2016

httpwwwwswsorg

Lufthansa flight attendants union accepts arbitration agreement

The Independent Flight Attendants Organisation (UFO) announced last

Friday it had reached agreement with Lufthansa in an arbitration deal

covering 19000 cabin crew The arbitration was led by former

Brandenburg state premier Matthies Platzeck (Social Democratic Party

SPD) The media celebrated the fact that the danger of a new strike in

the peak holiday season had now been avoided

In reality the agreement is declaration of war on flight attendants and all

other air travel employees At a decisive moment UFO has stabbed its

members in the back For weeks Lufthansa management has been

conducting a massive attack on the rights and achievements of pilots

cabin crew air traffic controllers and ground staff

The arbitration award had been negotiated in strict secrecy since

January with the UFO leadership of Nicolas Baublies cynically saying

their motto was ―arbitrate and keep silent The contents of the deal are

due to be revealed at a press conference this afternoon

Matthias Platzeck was also the arbitrator in last yearrsquos train driversrsquo

strike and ensured the GDL union signed a five-year standstill

agreement which will remain in force until 2020

The danger is acute that behind the cover of a few superficial

―successes UFO has agreed to a new contract that makes similar

wide-ranging concessions ―As you know more than 20 different themes

were worked on and negotiated the UFO leadership told its

members who will now vote on the arbitration award

In reality UFO agreed a framework for the negotiations in January that

presupposes concessions on pensions UFO has thus abandoned

pensions the most important issue prompting flight attendants strike in

December UFO has agreed that in future it is the employees and not the

company that will have to bear the risk of interest rate movements

affecting their pensions

1

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 34: Egyptair news 6 july 2016

This was of particular importance for Lufthansa because of the present

low interest rates Since the 2008 financial crisis it is no longer

worthwhile allowing older crew members to take early retirement at 55

as was previously the case and replace them with lower paid younger

workers

For airside staff such changes will have a devastating impact since

the guaranteed company pension was an indispensable achievement

Like pilots flight attendants are only rarely able to withstand the

constant stress of air travel until they reach the official retirement age

Lufthansa is not offering them a job on the ground

For ground staff the service sector union Verdi had already made

significant concessions in this direction in December 2015

Accordingly new hires will only receive fixed annuity supplements but

not a guaranteed pension Existing workers also have to make a

personal contribution to their company pension At the same time

Verdi agreed not to call any strike action before the end of 2017

The Lufthansa board have been attacking ground staff for weeks In

December CEO Carsten Spohr announced the goal of reducing costs

by half a billion euros annually by the end of 2018 Since then

management have been pushing through spinoffs wage dumping and

downsizing

At Lufthansa Cargo the company intends to cut up to 800 full-time

posts As Lufthansa Cargo CEO Peter Gerber announced on June 10

personnel and service costs are to be reduced in the cargo subsidiary

alone by euro80 million annually

At Lufthansa Technik cutbacks are also the order of the day In

Hamburg Lufthansa Technik employees confront layoffs and drastic

wage cuts In addition Lufthansa wants to reduce staffing in its

catering subsidiary LSG Sky Chefs by up to 2400 jobs and cut the

number of its locations in Europe from 23 to seven

2

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 35: Egyptair news 6 july 2016

On May 13 the Lufthansa board announced the unilateral termination

of the ―collective agreement protection for ground staff which had

been in place for decades This had ensured that long-serving

employees received equivalent replacement jobs in case of any

spinoffs

Just the fact that UFO has reached agreement with management in a

tense situation in which thousands of Lufthansa employeesmdashnot to

speak of those working in the supply chainmdashare faced with job cuts

outsourcing and wage cuts casts a harsh light on the role of the union

Many flight attendants had joined the UFO sector union in recent years

because they had completely lost confidence in the umbrella union

Verdi For years Verdi has cozied up to Lufthansa management

collaborating closely with them in restructuring the company As is

now clear UFO is no different

Six months ago UFO participated in the ―Lufthansa Jobs Summit

which was aimed at involving all the relevant unions in the company

restructuring One of the summitrsquos co-organizers was Christine Behle

a member of the Verdi federal executive and deputy chair of the

Lufthansa supervisory board

The Verdi leadership does not support the interests of the international

working class but of the German aviation corporations which it

defends against their global rivals In April in a press statement by the

works council representatives covering German airports Verdi

functionaries said their most important goal was ―strengthening

Germany as a location for the air traffic industry and the maintenance

of its competitiveness

UFO shares this perspective As a sign of the unionrsquos willingness to

collaborate with Lufthansa it called off its strike by cabin crew last

December so that it could participate in the ―Jobs Summit The

strike which had begun in November 2015 was considered one of the

toughest labour disputes in Lufthansarsquos history Flight attendants went

on strike for six days in a row grounding nearly 5000 flights Since

then the air travel unions Verdi UFO and the pilotsrsquo union Cockpit

(VC) have put all industrial action on hold

3

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 36: Egyptair news 6 july 2016

Negotiations between Lufthansa and VC have been running for over two

years and the pilots have already stopped work 13 times

Pilots and flight attendants are faced with the fact that Lufthansa

intends to expand its low-cost subsidiary Euro Wings Europe GmbH

The German labour contract does not apply in Austria where Euro

Wings is based and consequently its employees face considerably

worse conditions than at Lufthansa in Germany Lufthansa is

systematically increasing its Euro Wings personnel and plans to hire

600 new flight attendants and pilots there within two years With Euro

Wings Lufthansa wants to go ―toe to toe with its Irish budget rival

Ryanair as Euro Wings CEO Karl Ulrich Garnadt has stated

Lufthansa pilots also confront the issues of their company pensions

salaries and job security But Cockpit also supports the nationalist and

profit-oriented course of the other unions at Lufthansa A year ago in

July 2015 VC declared its loyalty to the Alliance for Growth and Jobs

and agreed in advance to accept harsh cuts in pilotsrsquo salaries and

pensions It also accepted the principle of less favourable treatment for

Euro Wings pilots

According to the flight industry web site airlinersde an agreement

between Lufthansa and VC is expected by July 31 The site quoted a

member of the VC bargaining committee saying ―If you donrsquot hear from

us this is a good sign

The German airline trade union struck its deal just a few days before

pilots in Italy took strike action against cuts to employee benefits and

the slashing of routes On Tuesday Alitalia announced the cancellation

of 142 flights In line with their perspective of ―strengthening German

competitiveness the German airline unions in common with their

European counterparts that share the same nationalist perspective are

firmly opposed to any joint action to oppose attacks on airline workers

4

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 37: Egyptair news 6 july 2016

httpwwwbloombergcom

Singapore Airlines to Allow Passengers to Bid for Seat Upgrades

Singapore Airlines Ltd has introduced a system that would allow a few

select passengers to bid online for a seat upgrade a few days before their

departure

The city-statersquos flag carrier at its discretion will invite fliers who have

booked economy class seven days in advance to bid for its premium

economy class which offers relatively more comfortable seats according

to the companyrsquos website Results of the auction will be known 40 hours

before the scheduled takeoff

―Invitations are made at Singapore Airlinesrsquo sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website The system may be extended to other classes

at a later stage said Harry Chu a spokesman

Asiarsquos premium carriers including Singapore Airlines and Cathay Pacific

Airways Ltd are facing intense competition from regional low-cost

carriers as well as major rivals based in the Middle East The fight to lure

customers has eroded the revenue earned from a passenger for flying

one kilometer or yields to a six-year low at Singapore Air according to

data compiled by Bloomberg

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 38: Egyptair news 6 july 2016

httpwwwstraitstimescom

Singapore Airlines introduces upgrade bidding system for invited

travellers

SINGAPORE - Singapore Airlines (SIA) has introduced a new bidding

system for seat upgrades which will be available to invited customers the

airline said this week

Customers who have booked tickets in Economy class can get an

invitation to bid for an upgrade to Premium Economy Class

The new system called mySQupgrade will be gradually introduced

across the network SIA said in its email to members of its loyalty

programme Krisflyer

Such bidding systems have been adopted by more airlines in recent

years More than 30 airlines around the world offer these auctions The

Wall Street Journal reported in January

Air New Zealand and Virgin Atlantic were among the first airlines to

introduce it five years ago in partnership with Plusgrade an online

auction company the Business Times said

How the upgrades are offered varies depending on each airline Some

may prioritise frequent fliers others may prioritise passengers travelling

alone

SIA said that it will notify eligible customers seven days before their

departure Bids must lie within a preset range it said

Travellers can change their bids up to 50 hours before departure

Payment will only be made if the bid is successful Sucessful bidders will

be informed about 48 hours before their flight

Invitations are made at Singapore Airlines sole discretion based on

certain criteria and combination of factors which are dynamic the

airline said on its website

SIA also said that while only one passenger in a group may receive an

invitation these guests can submit a bid on behalf of other passengers

with whom they are travelling

Factors that affect the outcome of a bid can include the value of the bid

the value of other bids and the number of Premium Economy seats

available SIA said

It will prioritise redemption booking confirmations over upgrade bids

through mySQupgrade the airline said

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 39: Egyptair news 6 july 2016

httpeditioncnncom

Pilot Did a fire not terror cause EgyptAir crash

(CNN) It appears that EgyptAir 804 which crashed into the Mediterranean

Sea on May 19 killing all 66 people on board may have suffered a

significant smoke and fire event

Although the transcript of the cockpit voice recorder or CVR has not

been publicly revealed EgyptAir sources have released information that

indicates from cockpit conversation that one of the pilots may have

been attempting to extinguish a fire or eliminate smoke

In addition according to earlier details from the Egyptian Accident

Investigation Committee recovered wreckage from the forward section

of the A-320 shows evidence of thick black smoke and heat damage

Why is this significant Simply stated the crash of EgyptAir 804 may not

have occurred as a result of terrorism While investigators still dont know

exactly what caused the crash both the CVR information and the

wreckage evidence lend credence to the theory that a mechanical

problem may have created a fire or overheat problem

It would seem that the source of the event originated from the electronics

bay or the cockpit

o recap Before the crash the messages transmitted to the Aircraft

Communications Addressing and Reporting System Aircraft or ACARS a

data link for sending messages between planes and ground facilities

indicated a fault warning for the copilots side window anti-ice heater

which always remains on throughout any flight

The next two faults in the sequence involved sensors that detect a

cockpit window being opened an impossible task for an airplane

pressurized at an altitude of 37000 feet And then a warning was sent

indicating that smoke was detected both in the forward lavatory and the

electronics bay The electronics bay is just below the cockpit

1

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 40: Egyptair news 6 july 2016

Finally the last two messages transmitted a fault in the autopilot system

and then a fault in a portion of the flight controls

What does all the new evidence imply Again we dont know all the facts

yet but it is possible that a mechanical malfunction within the A-320s

systems may have begun as an overheat situation and erupted into a fire

inside the confines of the electronics bay

The electronics bay is the brains of the airplane The bay contains the

flight management computers that direct almost every aspect of airplane

operation communications flight control movement environmental

systems and more

Unlike the two cargo compartments no fire suppressant system is

designed into the electronics bay of the Airbus because fire retardant

material releases particles that infiltrate the functionality of sensitive

electronics and could cause havoc Instead a venting system is utilized

that theoretically evacuates smoke

On a fly-by-wire airplane controlled by a computer system a fire could

potentially disable the crews ability to adequately control the airplane

The pilots oxygen system utilized in the event of a depressurization

event is also in the electronics bay If fire or extreme heat compromised

the hoses connected to the cockpit pure oxygen has the potential to

ignite rapidly andor explode

Based on the facts conveyed so far we can speculate that the faults

transmitted by ACARS occurred as a result of electronic circuitry

nearest the source of the overheatfire being affected first And then at

some point everything in the electronics bay could have succumbed to

the event Forward lavatory smoke would certainly be indicative of a fire

or overheat condition coming from below the floor where the electronics

bay is located

2

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 41: Egyptair news 6 july 2016

It is also plausible that the first fault indication the copilots side

window having an anti-ice heating issue may have resulted in a

catastrophic failure that involved a cracked interior pane caused by a

fire in the heating element sandwiched in-between the glass A pilots

immediate reaction other than to flinch is to shut off the power to the

offending window And then if a fire were evident someone would

have used the portable cockpit Halon fire-extinguishing bottle

Although cockpit window cracking can be an alarming and spectacular

event seldom is the situation serious enough to completely

compromise the integrity of the offending window There are two thick

panes of glass Something else would have to have occurred for the

pilots to lose complete control of the airplane

Is a terrorism-planted explosive device still a possibility Sure But

this new information makes it less likely Regardless where there is

smoke there is high probability that there is fire

3

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 42: Egyptair news 6 july 2016

httpwwwobserverorgsz

YAMOUSSOUKRO DECISION IMPLEMENTATION ON THE CARDS

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

THE country is currently working on implementing the Yamoussoukro

Decision to enable full liberalisation of air transport services in terms of

access capacity frequency and tariffs

Swaziland Civil Aviation Authority (SWACAA) Director General Solomon

Dube said this would result in increased trade both regional and

intercontinental which is critical for economic development

However he said the agreement was yet to be properly ratified as it has

to first go through the required regulatory enacting processes

Africa head of states and governments endorsed the Yamoussoukro

Decision in 2000 and it became fully binding in 2002

Specifically the Decision calls for full liberalisation of intra-African air

transport services in terms of access capacity frequency and tariffs

Free exercise of first second third fourth and fifth freedom rights for

passenger and freight air services by eligible airlines liberalised tariffs

and fair competition and compliance with established International Civil

Aviation Organization (ICAO) safety standards and recommended

practices

―The agreement also promotes open skies which is a major advantage

as we have currently signed agreements with other states on basis of

open skies which basically means that our agreements allows their

airlines to fly between any point in the country and that will be the same

case with the countryrsquos airlines he said

Dube said this was essential to link the country with the African and

global economy

―It is also important in supporting the industry value chain because

increased traffic will consequently result in increased activity in other

services like transport hotels and other support services he said

objective

1

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 43: Egyptair news 6 july 2016

SWACAAs immediate objective is to ensure that Swaziland complies

with all laid down industry standards The Authority is also busy

attracting air transport business into Swaziland for tourism trade and

investment

Meanwhile the Common Market for Eastern and Southern Africa

)COMESA( has called upon member states governmentsrsquo to fast-track

the process of establishing legal regulatory and institutional regional

frameworks to guide the open skies initiative in the region to boost

connectivity and trade across the region

Speaking during a recent held two-day COMESA consultative meeting

on navigation surveillance air traffic management legal and regulatory

framework Director for Infrastructure and Logistics Dr Abu Sufian

Dafalla encouraged governments to form partnerships saying bilateral

engagements were the primary tools that would help improve the

continentrsquos aviation industry

―Enabling aircraft navigate seamless will boost airline business on the

continent We therefore need to setup the base on cross-border

airspace navigations to facilitate movement and trade he said

COMESA has even put in place a steering committee to establish how

members can harmonise their airspace to ease air travel cut costs and

hence boost economic growth in the region

Dafalla also called on governments to invest heavily in aviation

infrastructure and skills development to support the industry

Part of the countryrsquos aviation infrastructure development was the King

Mswati III International Airport which has been operating since

September 2014

During his 201617 budget speech Minister of Finance Martin Dlamini

said efforts would be now made to ensure that the airport is well

marketed to attract more passengers and airlines

He said the planned revival of Royal Swaziland Airways Corporation as

a fully-fledged airline is also expected to give impetus to the viability

and success of the Airport

2

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 44: Egyptair news 6 july 2016

httpfinanceyahoocom

Airline Stock Roundup United Continentals Flight Attendants

Deal on Track Delta Traffic in Focus

The past week which was a day short of trading as Independence Day

was observed on Jul 4 saw United Continental Holdings UAL the parent

company of United Airlines revealing encouraging news on the labor

front

Shares of the carrier gained following the news that the leadership of the

union representing its 25000+ flight attendants has accepted the

tentative deal pertaining to pay and other financial details To become

operational the agreement will now have to be ratified United

Continental was also in the news owing to its decision to initiate flights

to Auckland

Apart from the above update the past week saw the Atlanta GA-based

Delta Air Lines DAL announcing the traffic numbers for June Similar to

May load factor ( of seats filled with passengers) declined in June too

as traffic growth was outpaced by capacity expansion The carrier also

unveiled a bearish guidance for the second quarter

European low-cost carrier Ryanair Holdings plc RYAAY also grabbed

headlines by virtue of its impressive traffic numbers for June despite

the multiple challenges The past week also saw updates from Alaska Air

Group ALK and JetBlue Airways JBLU

On the price front the NYSE ARCA Airline index gained 263 to $8291

over the past week as stocks recovered from the lows following the

Brexit vote

1

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 45: Egyptair news 6 july 2016

Recap of the Past Weekrsquos Most Important Stories

1 United Continental inked a tentative pay-related deal with the labor

union (Association of Flight Attendants or AFA) representing its

flight attendants The agreement aims to bring the carrierrsquos flight

attendants under a single work group Apparently this is the first

contract pertaining to the cabin crew members since 2010 when

United Airlines and Continental Airlines merged resulting in the

formation of United Continental Holdings (read more United

Continental Gains on Tentative Labor Deal with AFA)

On a separate note United Continental in a customer friendly move

launched non-stop flights connecting its premier Pacific gateway at San

Francisco International Airport and Auckland By launching its first

service to Auckland the Chicago-based carrier as officially started its

joint venture revenue sharing agreement with Air New Zealand

2 Delta announced a 31 increase in revenue passenger miles (RPMs

a measure of traffic) and 35 rise in average seat miles (ASMs a

measure of capacity) for the month of June Load factor decreased 40

basis points to 877 in the month

The company witnessed a 5 drop in PRASM in the month mainly due

to volatile foreign currency exchange rates and soft passenger yields

from domestic markets The metric is expected to decline approximately

5 in the second quarter (the previous guidance had called for a

decline of around 45)

Delta expects operating margin to be around 17 in the second quarter

(the previous guidance had projected the metric around 21) Average

fuel price per gallon is expected in the band of $195 to $200 System

capacity is projected to increase approximately 3

2

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 46: Egyptair news 6 july 2016

3 Alaska Airlines a wholly owned subsidiary of Alaska Air Group

announced that it intends to introduce flights between Seattle and San

Luis Obispo CA from Apr 13 2017 The daily and non-stop flight

between these destinations aims to meet the surge in traffic on this

popular route (read more Alaska Airlines to Fly Between Seattle and

San Luis Obispo)

On a separate note Alaska Air Group reported a 109 increase in June

traffic Capacity too increased 117 while load factor declined 70 basis

points to 86 At the end of the first six months of 2016 Alaska Air

generated RPMs of 18 billion (up 111 year over year) and ASMs of

215 billion (up 12) Load factor declined 70 basis points to 835

4 Ireland-based Ryanair Holdings reported solid traffic data for the

month of June on the back of its customer friendly ―Always Getting

Better scheme The carrierrsquos traffic climbed 11 to 106 million in the

month Load factor (percentage of seats filled by passengers) rose to

94 from 93 a year ago

5 In a customer-friendly move low-cost carrier JetBlue Airways

announced that it would cover Transportation Security Administration

(TSA) Pre enrollment cost for its Mosaic TrueBlue members the

carrierrsquos most frequent fliers The airline has introduced this limited

time offer to cut down TSA screening checkpoint wait times Frequent

fliers who attained Mosaic status before Jun 30 2016 are eligible for

this offer The offer comes at an appropriate time as the ongoing

summer has been predicted by the Airlines for America to be the

busiest one for US carriers

3

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 47: Egyptair news 6 july 2016

The table shows that all airline stocks traded in the green over the past

week as stocks recovered from the Brexit tremors Shares of American

Airlines Group AAL appreciated the most (588)

Over the past six months the majority of the airline stocks lost value

leading to a 091 decline in the NYSE ARCA Airline index American

Airlines was the primary laggard with shares depreciating 2831 over

the same period

Whats Next in the Airline Space

We expect airline heavyweights like Southwest Airlines Co LUV and

American Airlines Group to report their June traffic numbers in the

coming days

4

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 48: Egyptair news 6 july 2016

httpwwweinnewscom

ICAO Secretary General partnership and investment crucial to

sustainable aviation development in Africa

Significant contributions towards safe and secure air transport and the

prosperity and sustainability of African communities could be achieved if

sufficient investment is made towards the development of Africarsquos civil

aviation capacities including infrastructure and skilled human

resources remarked ICAOrsquos Secretary General during the Third ICAO

Africa and Indian Ocean (AFI) Aviation Week in Malabo Equatorial

Guinea which concluded last week

―I am a firm believer in partnerships and Africa is one of aviationrsquos

greatest examples today of what cooperation and commitment can

deliver in terms of concrete civil aviation progress Dr Liu highlighted

―ICAO has been working very hard to foster this type of cooperation in

every world region and we are tremendously grateful that these

comprehensive AFI Week events have now established themselves as an

essential instrument for Africa-wide civil aviation progress

The 2016 AFI Aviation Week was hosted by the Republic of Equatorial

Guinea at the African Union Conference Center in Malabo The wide

ranging series of events convened included the Third Africa-Indian

Ocean (AFI) Aviation Safety and Security Symposium the Second Human

Resources Development Fund (HRDF) for Africa Meeting the

Seventeenth Comprehensive Regional Implementation Plan for Aviation

Safety in Africa (AFI Plan) Steering Committee Meeting and the Third

Comprehensive Regional Implementation Plan for Aviation Security and

Facilitation in Africa (AFI SECFAL Plan) Steering Committee Meeting

A key agenda item saw the many senior officials in attendance taking

stock of the progress and status of regional safety targets set by the

African Ministers of Transport in 2012 Respective participants also

reviewed the status of implementation of ongoing initiatives and plans

guiding effective cooperation on aviation safety security and human

resources development discussed the related outcomes from recent

African high-level meetings and Declarations and heard proposals on

how the specific work programmes under each area could be further

improved in light of latest data and developments

1

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 49: Egyptair news 6 july 2016

―The successful implementation of current Safety and Security priorities

are directly linked to States having the necessary human resources at

their disposal inclusive of the required qualifications competencies and

experience to address their responsibilities Dr Liu noted ―These issues

are particularly crucial for African States which are now experiencing

significant traffic growth whether due to increased international or

domestic operations

Dr Liu recognized some key States which have been important early

contributors and champions regarding the ICAO Human Resources

Development Fund and she also took time to highlight how valuable

ICAOrsquos many partnerships on the African continent have been to the

achievement of practical and sustainable civil aviation development

commenting that ―in supporting African States to meet their obligations

under the Chicago Convention the African Union Commission and the

AU specialized agency the African Civil Aviation Commission (AFCAC)

as well as Regional Economic Communities are sparing no effort as we

continue to jointly assist national governments in meeting global and

regional targets in line with ICAOrsquos Strategic Objectives Their support

and collaboration are greatly appreciated

The AFI Aviation Week setting also provided ICAO with an opportunity to

congratulate representatives of several States present for their improved

level of compliance with ICAOrsquos Standards and Recommended Practices

)SARPs( ―We are seeing an increasing number of States with ICAO

Universal Safety Oversight Audit Programme Effective Implementation

rates over 60 percent and a diminishing number of outstanding

Significant Safety Concerns These are indeed very positive trends but

they must continue to be improved upon Dr Liu said

2

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 50: Egyptair news 6 july 2016

Since taking office Secretary General Liu has been advocating tirelessly

with ICAO Member States UN system agencies the donor community

and all relevant stakeholders on aviationrsquos relationship to successful

sustainable development planning and the attainment of the United

Nations Agenda 2030 Sustainable Development Goals ―Effectively

resourced and administered civil aviation systems in States are essential

to establishing air transportrsquos global connectivity which in turn serves

as a key catalyst for sustainable economic and social development she

commented adding that a fundamental prerequisite for gaining access

to air transportrsquos global connectivity and opening up access to

international markets and trade flows is a safe and secure air transport

system through effectively implementing SARPs and policies

As part of the events the Steering Committees of the AFI Plan and AFI

SECFAL Plan adopted a project- based approach to implementation of

these plans and endorsed the outcomes of the Third AFI Week Symposia

for the enhancement of aviation safety as well as security and facilitation

in Africa

During Dr Liursquos courtesy call to President Obiang Nguema Mbasogo the

Head of State of Equatorial Guinea pledged to make a financial

contribution of $200000 to the Human Resources Development Fund

(HRDF) for the African civil aviation sector

Side meetings were held with various States on on-going ICAO

assistance activities aimed at improving safety and security oversight

The occasion was also used to release the Second Edition of the Annual

Safety Report of the RASG-AFI signing of the project document for

membership of the African Flight Procedure Programmes (AFPP) by two

States aimed at fostering PBN implementation and of an ICAO Technical

Cooperation Bureau project agreement on safety and security

assistance with Equatorial Guinea

3

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران

Page 51: Egyptair news 6 july 2016

الشركة القابضة -ادارة العالقات العامة

لمصر للطيران