15 June 2015 .pdf

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IATA Calls for Greater Partnership with Governments

The International Air Transport Association (IATA) has advocated for

greater partnership with governments based on global standards in the

critical areas of safety, infrastructure, security, regulation, and

environment in other to enhance safer air transport in the world. IATAs Director General and CEO, Tony Tyler made the call in a report on the Air Transport Industry to the 71st IATA Annual General Meeting and

World Air Transport Summit, which was held in Miami, Florida, United

States. Aviation is built on partnerships and the relationship with governments is key. Airlines and governments are well-aligned on safety. But in other

areas of government responsibilityinfrastructure, security, regulation, and environmentthere are opportunities for a deeper partnership, said Tyler. He said this year, some 3.5 billion people and 55 million tonnes of cargo

would travel safety by air over a global network of 51,000 routes, noting

that airlines directly employ 2.5 million people and support another 56

million jobs in the industrys value chain. Its role as a catalyst of economic growth is evident as some $6 trillion of goods find their way to

global markets via air transport. For nations, connectivity is much more than a competitive advantage. It is an economic necessity. And aviations intangible benefits make it a force for good in the world. So there is a tremendous common interest

with governments to support safe, efficient, and sustainable global

connectivity that only air transport can provide, said Tyler. On safety, Tyler said it is a tragic paradox that in 2014 aviation recorded

its safest year ever (with one jet hull loss for every 4.4 million flights) yet

it remained constantly in recent world headlines over safety issues. He said working with governments through the International Civil

Aviation Organization (ICAO), significant progress was made with issues

raised as a result of the (Malaysian Airlines) MH 370 and MH 17

tragedies. A 15-minute position reporting standard is being developed

and governments are working together to share security information

more effectively.

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We will not be satisfied until the outrage of MH 17 is fully addressed in a global convention to control the design, manufacture, sale and

deployment of weapons with anti-aircraft capability, said Tyler. He also said the findings of the full investigation on the German airline,

Germanwings 9525 tragedy will see regulators and industry looking at the balance needed to monitor the mental health of crew in an

environment aligned with the non-punitive Just Culture that drives

safety forward, said Tyler. On 24 March 2015, the Germanwings aircraft, an Airbus A320-200,

crashed 100 kilometres (62 mi) northwest of Nice, in the French Alps,

after a constant descent that began one minute after the last routine

contact with air traffic control and shortly after the aircraft had reached

its assigned cruise altitude. All 144 passengers and six crew members were killed. Tyler warned against a rush to judgment or regulation in the immediate

aftermath of accidents, even in an age where news is unbridled and

ubiquitous. We must not allow anything to undermine the well-established accident investigation standards and processes, which lead to findings

that improve safety, said Tyler. On infrastructure, Tyler said aviation can only deliver its significant

social and economic benefits if it has adequate, cost-efficient

infrastructure capacity to meet growing demand. We seek to work in partnership with governments based on the global principles that they have agreed through ICAO. Transparency and

consultation will ensure that what is built matches business needs at a

price that is affordable and mutually beneficial, said Tyler. He noted several critical infrastructure challenges where more

alignment is needed, including finding a solution to expand airport

capacity in the Southeast of the UK, addressing the high cost of fuel in

Brazil and Africa, keeping costs at Hong Kong International Airport

competitive as it funds construction of a third runway, and improving

efficiency in Chinese air traffic management


yler expressed the industrys longstanding frustration at the slow pace of progress on the Single European Sky (SES). The initiative languishes. States are paralysed by self-interested national organisations, which show no regard for the impact of their

inefficiency on economies or consumers, said Tyler. Tyler noted industry support for initiatives to reform the funding of the

air traffic management organisation in the United States. There is finally a growing recognition that funding such an essential service as air navigation should not be held hostage to a game of

political brinkmanship in the setting of the national budget. The discussion about the corporatization of air traffic management is a

welcome development, he said. Speaking on security and facilitation, the IATA Director-General and

CEO remarked that the aviation industry and governments are partners

in aviation security. We have a common interest in keeping our passengers, crew, and cargo secure with efficient and respectful processes built around

global standards. While there has been tremendous progress over the

last few years, our customers still see security and border controls as

big pain points in their journeys. We must join forces to encourage governments to align on a risk-based approach, adopt global best practices, recognise equivalent

measures by other governments, stop wasteful and paper-based

processes, and make full use of available technology, said Tyler. IATA identified three key areas for urgent action by governments and

these include known traveler programs: Linking these programs across

borders; Advance Passenger Information: Harmonising requirements

around ICAO standards and aligning processes to eliminate redundant

paper documentation and reduce queuing times and Cargo security:

Driving efficiency through harmonised processes facilitated by global

standards created through cooperation between IATA, ICAO and the

World Customs Organisation.


On regulation, IATA advocated for smarter regulation aligned with global standards. Our message is that regulation needs to be smarter. To start, the benefits of any regulation must outweigh its costs. It should be consistent with global standards,

proportional, well-targeted, fair, and clear about what is expected. These common

sense principles are best achieved through a process of rigorous consultation that

includes a focus on keeping the compliance burden to a minimum, said Tyler. Tyler noted four priority areas where progress is critical which include ratification of

the Montreal Convention 1999 (MC99), consumer protection and new distribution

capability. He said some 112 countries have signed MC99, which established a

globally harmonised liability regime and is a pre-requisite for countries to accept

electronic documentation critical for the modernisation of cargo processes (e-

freight). Thailand, Indonesia, and Russia are among the key countries that IATA is

urging to ratify the convention. On consumer protection, Tyler said, Governments appear to be losing faith in a basic principle of commercethat businesses become successful by pleasing customers. Many regulators are adopting passenger rights regimessome of which come close to dictating product design and marketing. Worse, there is no

international coordination. When things go wrong, passenger need clarity, not

confusion, said Tyler and urged governments to align consumer protection initiatives with principles being developed through ICAO. On New Distribution Capability (NDC), he said in the light of imminent innovation in

the distribution of air travel products as a result of the US Department of

Transportation (DOT) approval of the NDC foundational standard, Tyler called on the

DOT to abandon provisions in its Consumer Rule Three that would force airlines to

display some ancillary products through third party distribution channels not

necessarily of an airlines choosing. It would be a step backwards when we are set for a giant leap forwards on transparency, said Tyler. Lastly, Tyler urged governments and industry to stay focused on global solutions to

manage aviations carbon footprint in the run-up to the ICAO Assembly next year. Weve always understood that our common interests and those of the environment are best served by a united industry position and a global approach. We are at the

forefront of industries addressing climate change with clear targets to improve fuel

efficiency by 1.5% annually to 2020, to cap net emissions with carbon-neutral growth

from 2020, and to cut net emissions in half by 2050 compared with 2005, said Tyler. These goals are being pursued with a four-pillar strategy based on improved

technology, more efficient operations, better infrastructure, and an effective, global

market-based measure.


Etihad Airways and Hong Kong Airlines

expand codeshare with enhanced

connectivity to Abu Dhabi and Europe

Etihad Airways, the national airline of the United Arab Emirates, has

expanded its codeshare agreement with Hong Kong Airlines, an

internationally-acclaimed Skytrax 4-star airline, to provide travellers

with enhanced connections between Asia, the Middle East, and

Europe. Under the expanded codeshare agreement, Hong Kong Airlines will

place its HX flight code on Etihad Airways flights between Hong Kong, the worlds third most important financial centre, and Abu Dhabi, the capital city of the UAE. Etihad Airways will commence a

daily frequency on the route from 15 June 2015,offering 3,620 seats

per week with an Airbus A330-200 aircraft. In addition, Hong Kong Airlines will codeshare on Etihad Airways new service between Abu Dhabi and Madrid, the capital and largest

city in Spain. The route, which was launched in March 2015, is

operated four times per week and offers2,096 seats per week with a

two class Airbus A330-200. Kevin Knight, Chief Strategy and Planning Officer at Etihad Airways,

said: Our codeshare agreement with Hong Kong Airlines was initiated last year with a primary focus on enhanced connectivity

between Asia and the Middle East. The expanded codeshare will

result in further commercial success for both airlines, and more

importantly unleash the true benefits of the partnership by offering

business and leisure travellers enhanced connections and a more

frequent service between Asia, the Middle East and Europe.

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Li Dianchun, Commercial Director of Hong Kong Airlines, said: We are glad to strengthen the partnership with Etihad Airways through a

codeshare expansion. There is an increasingly strong demand in Asia for

travel to the GCC region, Europe, Africa and South America. The

enhanced connectivity will enable our passengers to enjoy a wider range

of choices while experiencing the world-class services and products

offered by both airlines. Etihad Airways and Hong Kong Airlines initiated their a codeshare

agreement in December 2014, allowing Etihad Airways to place its EY code on Hong Kong Airlines flights between Hong Kong and Bangkok, and on flights between Hong Kong and Okinawa, while Hong Kong

Airlines placed its HX code on Etihad Airways service between Abu Dhabi and Bangkok. Etihad Airways will increase the frequency of its Bangkok service from

three to four flights a day from 1 July 2015, with Hong Kong Airlines also

codesharing on the additional fligh

Route Flight No. Departur

e Arrival Frequency

Abu Dhabi (AUH) - Hong Kong (HKG)

EY 8134 / HX 1880

21:45 09:45

+1 Daily*

Hong Kong (HKG) - Abu Dhabi (AUH)

EY 833 / HX 1881

18:55 23:25 Daily*

Abu Dhabi (AUH) - Madrid (MAD)

EY 075 / HX1881

02:35 08:45

Mon, Wed, Fri &

Sat

Madrid (MAD) - Abu Dhabi (AUH)

EY 076 / HX1880

10:05 19:25

Mon, Wed, Fri &

Sat

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Open skies with GCC crucial for US

senior Boeing official economy Three US carriers are calling for an end

to the US open skies agreement with the UAE and Qatar over a subsidies row

Open skies is crucial for the airline industry and for the US economy, a senior Boeing official has said. We truly believe in open skies. Its good for the consumer, its good for economic development and we are very supportive

of it, said Marty Bentrott, SVP, International Sales, Boeing. His comments come as three major US carriers American Airlines, United and Delta Air Lines accuse Emirates, Etihad

and Qatar Airways of receiving unfair government subsidies worth $42bn. The US airlines have demanded an end to the

countrys open skies agreement with the UAE and Qatar. The GCC carriers have aggressively denied the charges and

allege that the US carriers are losing marketshare because of

inferior service standards. Refusing to take sides, Bentrott stressed that the US-based

aircraft manufacturer stands by open skies.

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We are not going to take sides in terms of the debate with respect to who is right and who is wrong. All we want to do is to

provide data and facts about the value of open skies of our business activity with customers in GCC, he said. All the three major GCC carriers and others such as flydubai

have a healthy pipeline of aircraft orders with Boeing. Open

skies also creates jobs for Boeing and its partners,

acknowledged Bentrott. The US was a major proponent of establishing this whole thought process around open skies so that airlines could fly to

where their passengers wanted to go. And its been a very important factor in continuing to grow commercial aviation

globally. Today we can fly from Seattle to Dubai directly, while five years ago that wasnt a possibility. This is good for me personally and good for a lot of people in this part of the US, he added. Currently, Emirates offers flights to 10 destinations in the US,

Qatar Airways to seven and Etihad to six. On the other hand,

United serves three GCC destinations while Delta and American

dont offer direct flights to the Gulf region. The GCC airlines also argue that they offer better connectivity

to markets in Asia and Africa, underserved by US carriers. If you delve into the topic [of cancelling open skies], it will affect airlines around the globe. When you start straining open

skies, it will not just be about the GCC carriers, it will have a

global impact, said Bentrott. However he added: We also believe that there needs to be fair competition on a global basis.

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15 June 2015 .pdf