Egyptair news 6 july 2016
description
Transcript of 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
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
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
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
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
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
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
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
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
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
―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
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
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
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
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
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
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
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
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
―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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
―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
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
الشركة القابضة -ادارة العالقات العامة
لمصر للطيران