Dubai airport visualize traffic growth

Dubai Airports announced its January traffic results for Dubai International today reporting a 10 per cent increase in year-on-year passenger numbers and a 3.9 per cent rise in international freight volumes.January passenger numbers topped 4.25 million, an increase of 10 per cent compared to 3.87 million recorded during the same month in 2010 as the airport crossed the four million passenger mark for the fifth time in seven months.

Aircraft movements for the month totalled 27, 385 up 7.3 per cent from 25,522 recorded during the same period last year. The largest increases in total passenger numbers in January were recorded on routes to and from GCC (+96,462 passengers), the Indian subcontinent (+60,757 passengers), Western Europe (+56,879) and Asia (+34,018 passengers).

In terms of percentage growth, Eastern Europe again topped the list of strong growing regions up 230 per cent year-on-year, albeit from a low base. Traffic volumes to/from North America rose 24.9 per cent in January primarily due to the increase of Emirates airline frequencies to Houston and Los Angeles from one to two flights daily each.

Russia and CIS passenger traffic was up 23.3 per cent thanks largely to flydubai’s ongoing expansion into that region, which spurred traffic growth to Yerevan, Yekaterinburg and Samara. Dubai International handled 178,199 tonnes of international air freight in January, up 3.9 per cent from the 171,453 tonnes recorded during the same period in 2010.

Passengers are lined up in queue at the Immigration section of Dubai International Airport terminal 2 for passport and security check.
January’s cargo figures reflect the anticipated moderation in air cargo growth compared to robust double-digit increases recorded by the industry last year following the dramatic global air freight traffic declines caused by the economic crisis in 2009. “We have enjoyed an auspicious start to 2011,” said Paul Griffiths, CEO of Dubai Airports.

“Passenger traffic growth is continuing at an impressive rate. January’s numbers are in line with our projections for an 11 per cent increase during 2011 to a total of 52.2 million passengers.

In fact the latest rankings from Airports Council International show that Dubai International is now the fourth business airport in the world for international passenger traffic.

Service levels are also on the rise as Dubai International recently claimed the Best Airport and Best Improvement awards for the Middle East at ACI’s Airport Service Quality Awards for 2010. Our goal is to continue to match industry leading growth with top flight service.

ADAC releases tender for Abu Dhabi Airport Midfield Terminal Building

Abu Dhabi Airports Company (ADAC) has announced the release of the General Contractor Tender for the Midfield Terminal Building (MTB), moving into the next phase of delivering Abu Dhabi International Airport with its iconic new terminal that will cater to the airport's dynamic passenger growth and support the Plan Abu Dhabi 2030.

The design and engineering of the building has been carried out with the utmost due-diligence. Following a rigorous peer review with 6 world-leading airports, and a consultation with all involved stakeholders, ADAC finalised the design of the MTB to ensure that the utility of the building delivers the required state-of-the-art and top-quality facility in an efficient and financially viable framework.

These reviews resulted in a complete design, as well as a detailed and comprehensive tender package that provides for the timely and efficient execution of the project. Following the award of the tender by the end of the year, the dates of the construction completion and the operational commencement will be announced.

ADAC issued yesterday the tender to a list of pre-qualified firms for the construction of the 700,000 square metre main terminal building, which will have an initial capacity of 27-30 million passengers per year. The building will be one of the world’s largest and most architecturally iconic structures.

In parallel to the tender for the MTB, Abu Dhabi Airports Company has been executing since 2010 a capacity enhancement program (CEP) which will allow Abu Dhabi International Airport to handle an additional 7 million passengers. Furthermore, ADAC is currently in the last stages of the Terminal 1 refurbishment, further upgrading the world-class airport services offered to its passengers.

His Excellency Khalifa Al Mazrouei, Chairman of Abu Dhabi Airports Company (ADAC) said: “Abu Dhabi Airports Company is pleased to announce the release of the MTB tender which is a key milestone in the development of Abu Dhabi’s International airport and a significant component in delivering Plan Abu Dhabi 2030. We are investing to ensure our growing customer base experiences the highest level of service available, in a distinctive facility that has been designed and is being constructed in a sustainable and environmentally conscious manner.”

Currently, the piling works for the MTB have been completed, with a total of 7,425 piles, and the grading works for the East Midfield are underway which will house the various support facilities for the new Midfield Terminal Building.

IATA issues gloomy forecast for global aviation

Airlines can expect to generate profits of $8.6 billion in 2011 according to the International Air Transport Association (IATA), significantly less than originally forecast.

As late as December IATA – which represents some 230 airlines – was arguing carriers around the world would make $9.1 billion in profits.

However, global instability, particularly in the MENA region, has pushed up oil prices, with profits likely to fall as a result.

British Airways was the latest airline to introduce a fuel surcharge to cover rising costs, alongside tour operator Thomas Cook.

On expected industry revenues of $594 billion, the $8.6 billion 2011 profit equates to a net profit margin of just 1.4 per cent.

This is a 46 per cent fall in net profits compared to the $16 billion (revised from $15.1 billion) earned by the industry in 2010.

“Political unrest in the Middle East has sent oil over $100 per barrel,” explained Giovanni Bisignani, IATA’s director general.

“That is significantly higher than the $84 per barrel that was the assumption in December.

“At the same time the global economy is now forecast to grow by 3.1 per cent this year — a full 0.5 percentage point better than predicted just three months ago.

Airlines can expect to make $8.6bn in profit in 2011

Economies

Growing economies give airlines the opportunity to recover some of these added costs with additional revenues.

For example, since early 2009, rising oil prices added 25 per cent to unit costs while average fares (excluding surcharges) rose 20 per cent.

But in 2011 higher revenues are not expected to be sufficient to prevent the rise in oil prices from causing profits to shrink by 46 per cent from 2010 levels.

Air Passenger Duty

IATA also highlighted the risk of increasing taxation, particularly in price sensitive leisure markets.

In 2010, the industry saw new and increased taxes in the range of three-to-five per cent of ticket prices in the UK, Germany and Austria.

Recently, Iceland, India and South Africa have joined with plans for additional taxation.

“This is a price sensitive business. Aviation has the power to stimulate economies,” added Bisignani.

“But that ability is being compromised by adding taxes at a time when we are struggling to cope with high fuel prices just to maintain anemic margins.”

End of the Affair; JAL decommissions Boeing 747s

Japan Airlines International (JAL) has confirmed it will decommission its last two remaining Boeing 747 jumbojets, ending over 40 years of affinity with the aircraft.

Two Boeing 747s were greeted by crowds as they arrived at Narita airport late yesterday, with staff on board wearing uniforms from a bygone era.

Flight 75 had returned from Honolulu and Flight 3098 flew back from Naha in Okinawa Prefecture, as JAL became just the latest carrier to move toward newer, more fuel efficient, planes.

JAL rival ANA, for example, is set to become the launch customer of the Boeing Dreamliner when it takes to the skies later this year.

Boeing will not let the 747 depart quietly, however, with a new model – branded the 747-8 International – launched earlier this year.

In a three-class configuration, the newest 747 can seat about 470 passengers—as many as some variants of the current 777.

It is smaller than the double-decker Airbus A380, which can seat 525 or as many as 850 depending on the configuration.Jumbojet

JAL was an early customer of the 747, receiving its aircraft in 1970.

Over the next 40 years, the airline would own and operate 112 of the planes, with approximately 80 of the jumbojets in service at the peak between 1994 and 2001.

However, JAL accelerated its plans to retire its inefficient 747s in January 2010, after the carrier entered bankruptcy protection.

The 747 had been the mainstay of the JAL long-haul fleet for newly two decades – covering largely trans-Pacific and trans-Atlantic flights – until it was eclipsed by the 777 in the late 1990s.

Only two US carriers - United Airlines and Delta Air Lines - still fly the 747 on regular commercial service, but it is still in wide use globally.

Iberia

JAL has also confirmed a codeshare with Iberia – a fellow oneworld member – as it seeks to boost its position in Europe.

The airline will now offer codeshare on flights operated by Iberia between Madrid and two destinations in Europe - London and Frankfurt.

Up until October last year, JAL offered customers a connection from Tokyo (Narita) to Madrid via Amsterdam, by placing the JL flight code on Iberia flights between Amsterdam and Madrid.

The codeshare arrangement was however suspended when JAL terminated its non-stop service to Amsterdam in October.

Thomas Cook to add fuel surcharge

Unrest in the Middle East and North Africa has seen oil prices rocket in recent weeks, with Thomas Cook the latest to feel the heat.

With Brent Crude oil presently trading at approximately $115 a barrel – up from under $100 at the start of February – the tour operator has added a fuel surcharge of £15 to short-haul flights, £25 to medium haul and £40 to long-haul departures.

All brands – including Thomas Cook, Airtours and Club 18-30 – will be hit by the rise in prices.

British Airways introduced a surcharge in February as political unrest in the oil producing Middle East saw speculators push prices higher.

However, this the first time Thomas Cook has introduced fuel surcharges for two years.

It is likely the charge will be maintained into the 2011-12 winter season.

All products are covered, including package trips and flight-only holidays, and the surcharge applies to holidays booked through the tour operator itself or through travel agencies.

Ian Ailles of Thomas Cook said: “We have worked hard to keep the impact of the rising fuel costs on our holidaymakers to a minimum but the fuel levy is an unavoidable result of the rising price of oil.”

Middle East Airlines joins SkyTeam

Middle East Airlines – Air Liban, the flag carrier of Lebanon, signs agreement to join SkyTeam in 2012. MEA will be the alliance’s second member from the Middle East, a strategic growth market for SkyTeam.

SkyTeam is actively working to strengthen its presence in the Middle East, one of the world’s most important and rapidly growing economic regions. The addition of MEA to the alliance network will enable SkyTeam to compete more efficiently, not only within the Middle East, but also to and from Western Africa. SkyTeam in return offers MEA a complementary global network. MEA customers will be able to connect to the world through traffic flows from the SkyTeam hubs in Europe, Africa, Asia and the Americas.

MEA has continued to improve its products and services to customers ever since it successfully concluded a thorough restructuring plan, intended to modernize and restructure the airline. Key elements of this plan included fleet renewal and rationalization, increasing the density of the carrier’s European, Middle East and West African network and improving product quality and consistency.

MEA Chairman - Director General Mohamad El-Hout stated: ”By joining SkyTeam, MEA being relatively a small airline, will now be able to provide its customers an extensive global network covering Europe, Asia, Africa and the Americas. MEA customers will benefit from SkyTeam members’ loyalty program as well as ST members lounges at all airports worldwide.”

Pierre-Henri Gourgeon, CEO of Air France-KLM declared: “We are extremely pleased that MEA will be joining SkyTeam, as it will strengthen the links already established with Air France over the past 12 years and will offer customers in the Middle East access to Air France, KLM and SkyTeam’s powerful global network.” SkyTeam Chairman Leo van Wijk said: “Today marks yet another confirmation of SkyTeam’s growing global family. The Middle East is a strategic market for our alliance as we continue to extend the SkyTeam network to all corners of the globe. The region has seen an impressive growth in traffic over the past decade and we want to engage actively in this expansion. I am convinced that MEA will develop into a significant and valuable player in Middle East aviation.”

SkyTeam Managing Director, Marie-Joseph Malé, illustrates the alliance’s continuing global expansion: “This year China Airlines and China Eastern with its daughter company Shanghai Airlines will effectively join us, according to plan. Garuda Indonesia, Aerolíneas Argentinas and Saudi Arabian Airlines have all confirmed their membership effective in 2012. We will continue to work on further expansion of our global network by looking for partners from India and Latin America.”

Check-in with Singapore Airlines check-out with Paypal

Singapore Airlines customers in the US, Singapore and five other Asia Pacific countries and territories1 can now pay for their flights with PayPal on singaporeair.com. This facility will progressively be made available to the Airline’s customers in up to 17 countries, making this the largest collaboration between PayPal and an Asian carrier to date.
After booking Singapore Airlines flights online, travellers can now pay for tickets using their PayPal account in as few as three clicks and without the need to retype their credit card or financial details.

A year-long global marketing campaign will be launched to celebrate the collaboration between Singapore Airlines and PayPal. The first marketing promotion allows travellers in the initial launch markets who pay for their Singapore Airlines flight with PayPal the chance to win back the price of their flight (up to S$2,000). One lucky winner will be selected daily from 7 March 2011 to 6 April 2011. For more details of this marketing promotion, please visit www.paypal.com/sg/sia.

“In our continuous search for more payment options for our customers, we are very happy to be able to add PayPal to our offerings. With PayPal, our customers will be able to benefit from another secure payment option and enjoy a hassle-free express checkout experience,” said Mr Tan Chik Quee, Singapore Airlines’ Senior Vice-President Marketing.

Mr Tan continued: “Matching the global nature of our business, PayPal’s online payment platform with over 94 million active users in 190 markets and 24 currencies will enable us to reach out to more travellers on all six continents in our network.”

“We’re so excited to add Singapore Airlines, one of the most admired carriers in the world, to our growing stable of airlines in the region that are leveraging on our global e-commerce platform to expand their reach to travellers worldwide,” said Mr Farhad Irani, Vice-President and General Manager of PayPal Asia Pacific. Mr Irani commented further: “Our two global companies share the same goal for faster and safer ways to pay for tickets online, thus our collaboration is another manifestation of delivering choice, convenience and value to consumers across Asia Pacific and the world.”

Besides using their online balance, PayPal users can pay for their Singapore Airlines flights from their bank accounts, credit cards or debit cards that are linked to their PayPal account2. In addition, PayPal never shares its users’ financial information, thereby increasing the security of the online transaction and protecting the privacy of its users.