UAE seeks investments in aviation to meet demand

ABU DHABI — The UAE on Tuesday called for more investments in aircraft, airports and new aviation facilities to help cater the growing number of passengers in the region.

The call was made by Minister of Economy Sultan bin Saeed Al Mansouri at the first meeting of the Directors General of Civil Aviation in the Middle East hosted by the UAE General Civil Aviation Authority (GCAA), in cooperation with theInternational Civil Aviation Organisation (ICAO).

The minister pointed out that the current stage required a shift in focus to keep pace with the current changes and emerging challenges with demand for air transport is growing rapidly.

The ICAO estimates that the number of passengers will grow at a yearly rate of 4.6 per cent until 2030, which means that the number of passengers, currently 2.3 billion, could double to 5 billion, and it will definitely be higher by 2050.

“We need more investments in aircrafts, airports and new aviation facilities in order to cater to the hundreds of millions of additional passengers. This means that several hundred thousand of air aviation staff members need to be trained on managing and operating complex systems and technologies yet to be invented.

“This also requires close cooperation with other countries and other stakeholders in the industry, including passengers, to maintain an integrated global air transport system and facilitate its growth in order to meet the unprecedented growth in demand for air transport.”

The three-day meeting is attended by many directors general and officials of civil aviation authorities in the region.

Al Mansouri stressed that a united vision was essential for the effective implementation of the aviation safety and security system worldwide, and that inefficiency in any part of the system would threaten the whole 
global network.

“Therefore, countries are collectively responsible for the implementation and maintenance of an efficient safety and security system. Regional cooperation and coordination is necessary to ensure proper safety and security mechanisms are in place to enhance regional dialogue and sharing information in order to protect and develop aviation interests in the region,” he added.

The minister further emphasised the necessity to adopt open sky policy in the region saying that some countries are slow when it comes to adopting open sky policies despite all efforts made by the ICAO in encouraging all contracted countries to adopt the free policy, and that still some countries are committed to hold onto protective restrictions.

Raymond Benjamin, the Secretary General of ICAO, said in his speech the global air transport system is arguably as safe as it has ever been, and that ICAO has completed the development of a global safety information exchange mechanism and system.

He said that at the last ICOA assembly meeting, member states adopted a resolution which made ICAO the first United Nations agency to lead a sector in the establishment of a globally harmonised agreement for addressing its CO2 emissions.

“The Resolution includes a global goal of 2 per cent annual fuel efficiency improvement up the year 2050,” Benjamin added. Saif Mohammed Al Suwaidi, Director General, GCAA said: “The meeting discussed a number of topics and issues related to the development of the civil aviation sector. Points of view varied, but all aimed at achieving this goal in the light of the many changes in the region, which call for intensive efforts to reach an advanced level of bilateral and regional cooperation in all fields of interest to all stakeholders in line with the future outlook of the sector.”

Crashed plane had no flight recorder

Investigators trying to piece together the cause of a plane crash in the UAE that killed four people are facing delays over a lack of any data recording device on the plane.

The news emerged yesterday as the UAE General Civil Aviation Authority (GCAA) released details of a preliminary report into the fatal accident.

All four people on board were killed when the American Grumman G-21 amphibious aircraft crashed on February 17 at Al Ain Airport about 4pm.

The report said that shortly after take-off, the aircraft veered to the left and crashed at taxiway K, which is parallel to the runway.

“The marks that were left by the aircraft at the taxiway exhibited that it had impacted the ground in nose down and left bank attitude,” the GCAA said in a statement. “No signs of inflight break-up or pre-impact fire were observed in the vicinity of the accident site.” It said that the aircraft had been modified some time before entering the UAE last August, however investigators are trying to get more details on the modifications from the American National Transport Safety Board.

The GCAA added that the investigation was being slowed down as, under Federal Aviation Regulations of the United States, the aircraft was not required to be equipped with flight recorders.

The aviation body said it is using alternative methods to unravel what happened, such as forensic examinations of the wreckage.

Wing and a prayer

Gulf carriers are ruling the world of aviation, and they have no plans to rest on their laurels

The roots of Middle Eastern aviation can be traced back to 1937, when an air agreement was signed to allow flying boats to use Dubai as a base. It was not until 1960 that a runway – made of compacted sand – was built, and that runway is now less than the length of the terminal buildings at the current Dubai International Airport. By any measure, the growth of the aviation industry in the Gulf has been exceptional.

Helped by its strategic location as an ideal location in which to refuel intercontinental flights, the big European carriers selected the Gulf as an ideal stopping-off point, but local authorities soon realised that this was a potentially massive revenue stream. First came Gulf Air – which was originally owned by Qatar, Bahrain, the UAE and Oman – followed by Emirates, launched in 1985. In its 25 years of operation, Emirates has grown to become an international powerhouse, led by chairman and CEO Sheikh Ahmed Bin Saeed Al Maktoum, who ranks fourth on our list.

Emirates is now the world’s third-biggest airline by capacity, and its biggest in terms of international scheduled passenger kilometres flown. By 2020, the airline will be operating around 250 aircraft, boosted by around 70 A380 ‘superjumbo’ aircraft.
Aside from Dubai International Airport, Emirates is likely to move to its new home in the next 15 years or so, out in the desert near Jebel Ali. Al Maktoum International Airport is part of the $33bn Dubai World Central project, and is set to be the world’s largest airport.

But Emirates is not the only carrier to take advantage. Qatar Airways – led by CEO Akbar Al Baker (ranked  at No.24 on our list) has built a brand based on luxury and affordability. Like Emirates, it is investing hugely in infrastructure, with its landmark New Doha International Airport set to open next year. The UAE’s flag-carrier, Etihad, also has significant growth plans, and is set to break even for the first time this year.

All three airlines have sucked intercontinental traffic through the Gulf’s hubs, raising hackles at more traditional carriers in the process. But if British Airways, Lufthansa and the like are worried now, they are likely to be even more concerned over the next decade or so, if the Gulf’s aviation plans amount to fruition.

Thales says near agreement on UAE offsets

(Reuters) - France's Thales (TCFP.PA) said on Friday it was close to agreement with the United Arab Emirates on the offset rules in possible arms contracts after a diplomatic row was disclosed by a French newspaper.

La Tribune daily reported that French diplomats had warned Thales that French interests were at risk over the company's stand on offsets, or counter-trade, as France campaigns to sell Rafale warplanes to the Emirates. [ID:nLDE72N2B0]

"This negotiation has been going on for several months and like all negotiations has experienced some highs and lows. We are currently in a state of convergence," a Thales spokesman said, adding the company was surprised about the leak.

"The negotiation should be completed in coming weeks."

Thales makes radar for the French warplane, which is built by Dassault Aviation (AVMD.PA).

UAE seeks investments in aviation to meet demand

ABU DHABI — The UAE on Tuesday called for more investments in aircraft, airports and new aviation facilities to help cater the growing number of passengers in the region.

The call was made by Minister of Economy Sultan bin Saeed Al Mansouri at the first meeting of the Directors General of Civil Aviation in the Middle East hosted by the UAE General Civil Aviation Authority (GCAA), in cooperation with theInternational Civil Aviation Organisation (ICAO).

The minister pointed out that the current stage required a shift in focus to keep pace with the current changes and emerging challenges with demand for air transport is growing rapidly.

The ICAO estimates that the number of passengers will grow at a yearly rate of 4.6 per cent until 2030, which means that the number of passengers, currently 2.3 billion, could double to 5 billion, and it will definitely be higher by 2050.

“We need more investments in aircrafts, airports and new aviation facilities in order to cater to the hundreds of millions of additional passengers. This means that several hundred thousand of air aviation staff members need to be trained on managing and operating complex systems and technologies yet to be invented.

“This also requires close cooperation with other countries and other stakeholders in the industry, including passengers, to maintain an integrated global air transport system and facilitate its growth in order to meet the unprecedented growth in demand for air transport.”

The three-day meeting is attended by many directors general and officials of civil aviation authorities in the region.

Al Mansouri stressed that a united vision was essential for the effective implementation of the aviation safety and security system worldwide, and that inefficiency in any part of the system would threaten the whole 
global network.

“Therefore, countries are collectively responsible for the implementation and maintenance of an efficient safety and security system. Regional cooperation and coordination is necessary to ensure proper safety and security mechanisms are in place to enhance regional dialogue and sharing information in order to protect and develop aviation interests in the region,” he added.

The minister further emphasised the necessity to adopt open sky policy in the region saying that some countries are slow when it comes to adopting open sky policies despite all efforts made by the ICAO in encouraging all contracted countries to adopt the free policy, and that still some countries are committed to hold onto protective restrictions.

Raymond Benjamin, the Secretary General of ICAO, said in his speech the global air transport system is arguably as safe as it has ever been, and that ICAO has completed the development of a global safety information exchange mechanism and system.

He said that at the last ICOA assembly meeting, member states adopted a resolution which made ICAO the first United Nations agency to lead a sector in the establishment of a globally harmonised agreement for addressing its CO2 emissions.

“The Resolution includes a global goal of 2 per cent annual fuel efficiency improvement up the year 2050,” Benjamin added. Saif Mohammed Al Suwaidi, Director General, GCAA said: “The meeting discussed a number of topics and issues related to the development of the civil aviation sector. Points of view varied, but all aimed at achieving this goal in the light of the many changes in the region, which call for intensive efforts to reach an advanced level of bilateral and regional cooperation in all fields of interest to all stakeholders in line with the future outlook of the sector.”

Dubai World signs final debt restructuring deal

Dubai: Dubai World has signed the final agreement on its debt restructuring plans with all 80 creditors, signifying an end to approximately 12 months of negotiations.

"We appreciate the cooperation of all the bodies for the completion of the restructuring agreement," Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and CEO of Emirates airline and Group, announced in a statement released by the Dubai Government Media Office and the Dubai World board of directors.

"We are very optimistic in Dubai World's capability to overcome the repercussions of the global financial crisis and all its challenges," he said.

The deal to restructure its nearly $25 billion debt has been divided into two phases. In the first phase, $4.4 billion will be paid over five years and in the second phase $10.3 billion will be paid over eight years at a fixed interest rate of 2.4 per cent. The amount includes debt held by the banks while the remaining debt is held by the Dubai government.

"The announcement has been largely expected since September but now it's been finalised there is more confidence that the restructuring plans of other entities will happen. There are other similar structured entities with the similar creditors. One detail we didn't know before was the exact interest rate. Now that it has been announced it gives you a blue print for future restructuring plans," Joe Kawkabani, managing director of equities asset management at Algebra Capital told Gulf News.

Dubai World's main lenders include Royal Bank of Scotland Group, HSBC Holdings, Lloyds Banking Group, Standard Chartered, Bank of Tokyo-Mitsubishi UFJ, Abu Dhabi Commercial Bank and Emirates NBD who, according to Dubai World have offered their full support to the restructuring plan.

"Standard Chartered welcomes the agreement and we remain confident about the prospects of the UAE, which is the largest business for us in the region," a spokesperson from Standard Chartered said.

Ensuring fairness

Mohammad Al Shaibani, director general of the Dubai Ruler's Court and a Dubai World board member, said the terms of the deal were set up to ensure fairness. The conglomerate will now continue with its operations and focus on its development and growth goals in the next phase.

"We are determined to take this organisation to a new phase of growth to help it continue its role along other prominent Dubai organisations in consolidating a strong and highly developed economic base that takes into account the highest standards of integrity and transparency," said Shaikh Ahmad.

The statement added that the value of Dubai World assets in various parts of Dubai World have recorded very good growth in the past few months. DP World which published its results today has announced a 35 per cent profit in 2010.

State-owned Dubai World shocked the financial world when it first announced in November 2009 that it would delay payments on its debt worth $23.8 billion. This was followed by the formation of a three-member Supreme Committee chaired by Shaikh Ahmad to oversee the company and its restructuriong plans.

Emirates confident of Vienna flights

Emirates Airline says it is confident plans to almost double its flights to Vienna will go ahead despite a disagreement with authorities in Austria.

The claim follows a series of disputes over landing rights in countries including Germany, as flag carriers try to fight off competition from the Dubai airline.

Emirates is aiming to increase its number of flights to the Austrian capital from Dubai by six to 13 a week from next Sunday.

"Talks continue with the Austrian authorities to resolve a technical disagreement concerning the air services agreement between the UAE and Austria, and our additional flights [for] which passengers have booked [and] Emirates has invested in promoting and hired new staff for," Emirates said.

The additional services would help the Austrian economy, the airline added. "Emirates is a strong partner for Austria, supporting business, trade, exports and tourism - not only within Austria but throughout our network of destinations," it said. "Key stakeholders in Austria agree the additional flights will be an important boost to the Austrian economy."

The carrier said it had decided to launch the extra services in response to strong demand, as it had flown more than 1 million passengers to Vienna since its flights to the city started in 2004.

The Austrian civil aviation authority declined to comment, but confirmed negotiations were taking place between the two parties.

Peter Malanik, the co-chairman of Austrian Airlines, which is owned by Lufthansa has spoken out against Emirates in the country's press, accusing the airline of expanding without concern for profitability and claiming Austrian had to scrap services to Mauritius and Australia because of competition from Emirates.

The airline has faced a number of obstacles as it expands its fleet and network. Emirates also clashed with Lufthansa this year after the German carrier tried to prevent it from being granted landing rights at an airport in Berlin that is due to open next year. Lufthansa said it was concerned that Emirates had an unfair advantage, with the carrier flying to four airports in Germany, while it flies only to Dubai International Airport.

Last year, Air France tried to block Emirates and Etihad Airways from expanding their services to French cities.

But in January the airlines were given the green light by French aviation authorities for plans to increase flights to cities including Paris.

Emirates has also had attempts to increase its flights to Canada blocked, despite years of talks, resulting in a diplomatic row.