AfBAA announces date for annual symposium to be held in Addis Ababa

The African Business Aviation Association (AfBAA) announced the confirmed dates for the Association's next annual symposium.

The third in the series will be held over two days on 24 and 25 September 2015 in Ethiopia’s capital, Addis Ababa at the Sheraton Addis hotel. AfBAA selected the location owing to the significant part the city plays in the African political landscape as the home city of the African Union of Nations. This will be the first AfBAA symposium held in East Africa and it is anticipated the location will encourage a greater number of Business Aviation stakeholders from this part of the continent to attend the meeting. 

The symposium will provide a platform to update topics initiated at the 2014 Symposium held in South Africa, in addition to introducing new themes that will be generated by varying AfBAA events through the year. These include the AfBAA Rendezvous in Luanda, Angola in February, AfBAA’s EBACE attendance at Europe’s largest Business Aviation convention to be held in May, and talking points generated by the ongoing African Business Aviation research being conducted by JetNetIQ. 

The event is already receiving interest from a number of corporate sponsors, which recognise the momentum, and influence that has been gained from the AfBAA meetings. Industry experts have already been invited to speak and an announcement about the line up will be made at the EBACE event in May.   

The Symposium will discuss all elements of Business Aviation in Africa but will have a special focus on the development of Business Aviation in the Central and Eastern African region recognising the specific challenges this area presents. It is expected that with the African Union’s headquarters based in Addis the meeting will attract a high number of government officials and regulatory bodies, in addition to business aircraft operators, OEMS, airports, law firms, trip planners, finance companies as well as all aviation professionals with an interest in the current and future development of the region. 

“We have already seen how popular, and more importantly influential, these meetings are. Progress is actually made as a result of the annual conference, which is the whole reason for arranging these events. Since we held our first meeting in Morocco in September 2013, the OEM’s have improved their support networks across the continent, an in-depth research study collating valuable data for the sector has begun, and we have formulated a number of agreements with industry leaders to support elements identified as crucial to sector success e.g. financing, maintenance, and SMS.  We’ve also noted member numbers increase after each symposium. Combined this demonstrates the value of these meetings and we will encourage even wider participation this year,” commented Tarek Ragheb, Chairman and Founder of AfBAA about the series of symposia. 

“We are aware that each country and region has its own issues and we are dedicated to advocating on their behalf. By holding our third annual Symposium in Addis Ababa we hope to debate key themes that are particularly pertinent for this area and its future economic development,” added Rady Fahmy, Executive Director of AfBAA. “We are looking forward to welcoming a wider cross section of Africa’s delegates and anticipate they will value the networking opportunity.” 

The event will be held over two days and will finish with a gala dinner for the final round of networking. For the first time AfBAA will also be arranging the opportunity for delegates to take in some of the host country’s spectacular sites with a third day of informal activities.   Sponsorship opportunities will be available for those wishing to support the event.

Africa on the path to recovery says ACI

According to Airport Council International (ACI) African air transport demand is on the path to recovery with annualized growth of 3.2% in passenger traffic.

Despite the adverse effects of the Ebola crisis on air transport in western parts of the African continent, Northern Africa has rebounded after a bleak period in passenger numbers for 2012 and 2013, a report from ACI said. 

From the eve of the Egyptian army-led overthrow of President Morsi to its aftermath, the tourist economy was crippled as passenger traffic dropped significantly in 2013. Cairo (CAI), North Africa's busiest airport and gateway to popular tourist destinations, saw passenger traffic jump back by 6.5% in 2014 as compared to the previous year. 

Other Northern African airports such as Algiers (ALG) and Casablanca (CMN) experienced strong growth of 9.1% and 5.4% respectively for the year. Johannesburg (JNB), Africa's busiest airport, ended the year with 1.3% gains in passenger numbers in 2014.

Ethiopian Airlines plans on placing 20 wide body aircraft order

Ethiopian Airlines is going to place orders for 20 wide body aircraft, reports The Reporter.

Ethiopian Airlines Group CEO, Tewolde Gebremariam, said management is evaluating the Boeing's new aircraft under development B777X and the Airbus A350-1000. The number of aircraft could be 15-20. 

Analyst Saj Ahmad said: “Ethiopian Airlines' continued expansion puts it right at the top of leading African airlines and its selection of a new widebody jet will solidify its position as Africa's fastest growing airline. 

“Ethiopian had early expressed a preference previously for the bigger 777-9X, given that it has more range and carries more passengers than the competing A350-1000, but with Ethiopian Airlines also inducting the first of 14 A350-900s next year, there is ample room for either a split deal between Airbus and Boeing as well as a "winner takes all" outcome.” 

Ahamad added: “The biggest challenge for both Airbus and Boeing is that while the A350-1000 and 777X are both years away from entering service, the performance metrics devised by both manufacturers will have to conform Ethiopian Airlines' stringent payload needs as they utilise many of the long haul jets to the fullest, with both passenger and cargo loads. 

“This would favour the 777-9X given the commonality with the 777-300ER and 787-8 fleets as well as its range superiority over the A350-1000, but the complexity of winning such a lucrative deal means both Airbus and Boeing will have to pull out all the stops to win this campaign.” 

The evaluation started last month and will be finalised within the next

- See more at: http://www.africanaerospace.aero/ethiopian-airlines-plans-on-placing-20-wide-body-aircraft-order.html#sthash.M5mfiYmc.dpuf

Air Zimbabwe calls for cash to bring airline back in line

In submissions made to the Parliamentary Portfolio Committee on Transport and Infrastructure Development in Harare, Air Zimbabwe acting board chairman Eric Harid said the airline needs $331.97 million to lease or purchase aircraft, $11.4 million for human resources recapitalisation and $10.6 million for plant and equipment upgrades.  Additional costs include $7.5 million for the construction of new office infrastructure and $2.1 million to clear up debts owed to the IATA. The airline also owes serving and forcibly retrenched workers $302 million in salary and terminal benefits arrears. It is presently paying workers only 40 percent of their monthly salaries, thereby accruing 60 percent in monthly salary arrears.  “We are currently paying human resources 40% and accruing 60% debts every month through our staff. Our staff and creditors have been suing us and as a board we hope we are able to tackle that,” Harid said. He added that the airline, which last made profit in 2003, recorded a loss of $44, 77 million in 2013 due to short routes, high fuel costs and the continued use of aged and ageing equipment.  The highest operating costs on the company accrued from the fuel bill as the company was using fuel-intensive Boeing 737 planes for one and a half hours flights when they are meant to fly continuously for six hours.  According to Harid, the national airline has a total of 10 aircraft including three 160-seater Boeing 737, two 200-seater Boeing 767s, two Airbus A-320 each with a capacity of 160 people and at least three aging, Chinese-made MA 60 medium haul jets and a few smaller aircraft.  Only one of the Boeing 737-200s is functional while the other two are in a state of disrepair. The airline operates a total of three functional aircraft – two Boeings and one MA-60. The two leased Airbus A-320 aircraft are due for re-delivery to Harare soon after spending six months undergoing special maintenance in South Africa.  “Our core business is in three models, passengers, cargo and mail, but our greatest asset is people. The airline has got the following fleet: two Boeing 767 2RER which seats about 197 passengers and these are owned by Air Zimbabwe. Only one is operational while the second is undergoing final C-checks at a regional aircraft maintenance factory.  “Two leased Airbus A-320 aircraft, each with a capacity of 156 are both undergoing maintenance in South Africa. “Of the three MA-60s, two are grounded while the only operational one is presently servicing the Victoria Falls-Kariba- Harare route which we re-opened in August last year," Harid said.  Despite spirited attempts, Air Zimbabwe has failed to attract joint-venture partners and financiers because it is heavily indebted while accusations of corruption and reports of financial scandals involving the company's former board members have forced potential funders to adopt a wait and see attitude as the new board settles down to work.  The airline flies to only one regional destination - Johannesburg - with flights originating from Bulawayo, Harare and Victoria Falls. It also operates three regular domestic flights on the Bulawayo-Harare, Harare-Bulawayo-Victoria Falls and the Harare-Kariba-Victoria Falls routes.  Despite the bad state of its finances, Air Zimbabwe recently announced that it is negotiating with Canadian business jet manufacturer Bombardier for the acquisition of an undisclosed number of low-cost twin-engined, medium range, turbo-prop Bombardier Q-400 regional jets. Bombardier sales director for Africa and Middle East, Sameer Adam said the company will be happy to do business with the ailing Zimbabwean national flag carrier:  "We have seen that Zimbabwe is a market full of opportunities and we hope that if we manage to strike a deal with Air Zimbabwe we will be able to supply and introduce the latest technology in this market. We have over 110 Q Series aircraft in Africa and we would be happy to offer our services to Zimbabwe,” Adam told local media in Harare after the  Bombardier Q-400 jet made a maiden Zimbabwean test-flight from Harare to the resort town of Kariba and back.  Commenting on the ongoing negotiations with Bombardier Aerospace, Transport and Infrastructural Development Minister Obert Mpofu said Air Zimbabwe should seize the opportunity and take advantage of the high technology offered by Bombardier to rebuild its fleet back to a world class civil aviation service.  “Air Zimbabwe must take advantage of new technology being offered by Bombardier and select the most suitable aircraft for the local environment. Many companies have approached us with proposals for us to buy their planes and we are still considering them,” Mpofu said.   According to its strategic business re-development model for the 2014-2016 period, Air Zimbabwe presently needs at least two more aircraft, of which one will be dedicated to service the domestic market while the other will be dedicated to regional destinations.  Mpofu said Air Zimbabwe will deploy the two Airbus A-320s set to be re-delivered shortly from the South Africa, to service flights on key regional routes which include Nairobi in Kenya, Lilongwe in Malawi and Kinshasa in the Democratic Republic of Congo (DRC). “We will soon be adding the two Airbus A-320s to the fleet. They can accommodate the routes that we have not been able to service as a result of the limitations on our fleet. The old fleet will also be brought in. “We have been doing our best to look for funding to get all those aircraft flying to give Air Zimbabwe an edge in terms of competition,” minister Mpofu said 

Denel Recognises Young Achievers Who Excel In Maths And Science

Top engineering students with bursaries from Denel that study at universities across the country were honoured at an awards function in Tshwane, South Africa, today. They were joined by high school learners who benefitted from Denel's enrichment programmes and achieved distinctions in maths and science in the 2014 matric exams.

Speaking at the Denel Young Achievers event the Deputy Minister of Public Enterprises, Bulelani Magwanishe, said South Africans should value academic achievers on an equal basis with top sports people, musicians and entertainers.

He commended Denel for creating a culture in which “finding engineering solutions to bring water to rural communities are valued equally with the ability to pass a ball with pin-point precision; where the designers of next generation aeroplanes, satellites and unmanned aerial vehicles are as well-known as pop idols; and where scientists and artisans receive the same recognition as fast bowlers and goalkeepers.”

The Group CEO of Denel, Riaz Saloojee said the company is attracting some of the brightest students in the country with bursaries for engineering studies and internships at Denel.

The company is committed to invest in the training of young engineers, scientists and artisans at tertiary level and promote the teaching of maths, science and technology among high school learners.

Denel is responsible for the teaching of enrichment classes for Grade 10, 11 and 12 learners in Gauteng, Limpopo, Mpumalanga, the Free State and the North West. Denel Dynamics has a partnership with two high schools in its vicinity, Steve Tshwete and Olievenhoutbosch whose learners receive additional tuition in maths and science from Denel employees over weekends and during school holidays.

Both Denel Aviation and Denel Aerostructures have similar programmes in place to support schools in the vicinity of their campus in Ekurhuleni, including at the Rafedile Academy in Springs and the Etwatwa Secondary School in Benoni.

Matriculants who participated in the programme scored a combined total of 66 distinctions in physical science and maths in the 2014 year-end exams. Among the top achievers were John Nyatshamo and Lwazi Selatole from Geluksdal Secondary School in Brakpan and Thabang Tshabalala from M.O.M Seboni High School in Nigel who all three scored more than 90% in both subjects.

Deputy Minister Magwanishe said Denel’s programmes and bursaries enable students to bridge the gap between the school environment and tertiary education. The company also provides continued support to deserving students through internships, mentoring and eventual full-time employment.

New data quantifies 179,800 new jobs of Heathrow expansion

Heathrow expansion is the best option on jobs and GDP gains for every part of the UK, as the Airports Commission’s consultation deadline nears.

New figures released today quantify for the first time how an expanded Heathrow will benefit every UK nation and region. The findings prove that Heathrow is the best option for both jobs and economic growth in all parts of the country.

With the Airports Commission’s consultation coming to a close next week, the data sheds new light on the aviation debate.

The independent report by QUOD, commissioned by Heathrow, confirms over half the gains from forecasted economic benefits and job creation will be made outside of London and the South East, a fact that is further endorsed by the public support Heathrow has already received from 26 Chambers of Commerce across the UK.

Regional employment benefits as a result of foreign investment and trade could total 179,800 new jobs across the UK in 2050, as long haul connections and increased freight capacity at an expanded Heathrow bring more business to the UK.

Trade is likely to play a big part in economic growth, with towns and cities across the rest of the country currently benefitting from nine times more employment from foreign investment in manufacturing than those in London and the South East. Scotland, Wales and Northern Ireland are expected to lead the way in research and development and the digital technology field, experiencing the greatest benefits from increased employment in these sectors.

Source and image: Heathrow Airport

MRO warfare in the NextGen widebodies battlefield

To date, Airbus has secured orders for more than 3 500 new wide-body aircraft. Meanwhile, the world’s latest generation wide-body, Airbus A350XWB, has been recently delivered for Qatar Airways, after an 11-day demonstration tour around Asia, and successfully finished its flight from Frankfurt to Doha. On the one hand, powered by Roll-Royce Trent engines, A350XWB promises the industry a further increase in cost effectiveness. On the other hand, the NextGen widebodies will definitely require suitable MROsolutions as well. In addition, the early indications suggest that the demand for new wide-body aircraft will result in substantial investments and rising labour costs to support the new comprehensive aircraft MRO systems. With this in mind, what are the challenges for MRO’s in the upcoming future?

Understandably, many experts report that the MRO development for NextGen widebodies will result in a fierce competition, requiring expert knowledge, geographical expansion and, as a consequence, demanding more investment not only for OEMs, but for independent providers as well.

Asia vs. North America

To begin with, there are predictions that some of the US air carriers will stop using maintenance services overseas and shift back to USA‘s MRO. Due to increasing cost, more and more operators realise that outsourcing is not as efficient as it was before. Growing maintenance costs also alert about the change in the scope of heavy maintenance outsourcing, thereby increasing the pressure on local providers. For example, according to AAR, these trends served as a reason for it to open a $15+ million MRO facility in Illinois, designed specifically to accommodate newer wide-body types.

“When we looked at the global market and zeroed in on the U.S. market, we saw a need for maintenance hangars that are capable of managing these new generation aircraft” - says David Storch, CEO of AAR.

One way to keep up with the growing competition is to provide tailored MRO solutions, as done by Boeing. The company’s strategy is to tie its manufacturing and maintenance businesses. Thus, apart from delivering orders, Boeing provides essential support for Malaysia Airlines (100 737 aircraft), BOC Aviation (50 737 MAX 8s, 30 Next-Generation 737-800s and two 777-300ERs) and Emirates (150 777Xs).

In the meantime, the changing situation may create new possibilities for MROs in Asia, which are not expected to give up without a battle and try to retain their place under the sun, even though it will not be a simple task. The capital cost of such an expansion is indeed challenging.

As stated by Mr William Kircher, Vice President at Pratt & Whitney Singapore Overhaul & Repair, Pratt & Whitney is continually investing in global partnership network to offer customers choice and flexibility. Doing business across the globe allows Pratt & Whitney to remain competitive with the right work in the right places, yet remain in close proximity to many customers.

„Established for more than 30 years, our footprint in Asia Pacific has also grown to allow us to remain well-positioned to benefit from future growth in this market. Singapore is home to Pratt & Whitney's most comprehensive aftermarket presence in a single location. Complementing our existing MRO capabilities in Singapore, Pratt & Whitney Eagle Services Asia is currently our global center of excellence for PW4000 large commercial engine overhauls, and will be one of the five Pratt & Whitney engine overhaul centers for the PurePower® engine family when it enters into service beginning this year”- shares Mr William Kircher, Vice President at Pratt & Whitney Singapore Overhaul & Repair, President at UTC Aerospace Singapore.

According to MTU Maintenance, the company is also continuously investing in new and state-of-the-art machinery, as well as further capabilities in China. As such, MTU Maintenance Zhuhai is permanently working on extending its capabilities and improving its service level, and only recently has introduced MRO capabilities for the CFM56-7BE engine variant. MTU Maintenance established the location with the aim to increase its presence in emerging markets and to offer its innovative services portfolio locally as well. Today, the company is China’s market leader for engine MRO and one of the top players in Asia.

“Taking into consideration the fact that some providers already have joint ventures in Asia, it is very likely that these shops will provide engine MRO for next generation wide-body engines as well. At the same time, strong orders from Middle East airlines for widebodies may impact the equation, and engine MRO for wide-body engines could shift from Asia to the Middle East in future. MTU Maintenance is continuously reviewing and improving its workflow and flexibility in order to better fulfil changing market requirements, as a confirmation that we are on the right track and a well-recognized competitive player – not only in Asia, but worldwide.” – shares MTU Maintenance management.

Independent MRO vs. OEM

To continue, the warfare between providers may not only occur for the location, but for the production. It is not a secret that the new technologies will allow original equipment manufacturers (OEMs) to hold a stronger position in the market of MRO, thereby surpassing the independent players at the expense of owning a unique knowledge of maintenance and limited access to relevant certificates. The situation is best described in the engine segment as original equipment manufacturers (OEM‘s) are dominating present MRO and will, most probably, hold their position for the NextGen widebodies. And if OEM’s are controlling 85% of engine MRO market, it is hard to imagine how independent MRO’s are going to develop technical maintenance hubs.

“Given the increasing OEM coverage for engine maintenance, it is very likely that MRO for next generation widebody engines will be to an even greater extent performed either in OEM shops or within the OEM partner network. As a result, it will be the decision of the OEMs which airlines they will license and/or whether they will develop regionally” – continues MTU Maintenance.

Nevertheless, it is not the right time to panic, because in terms of globalisation, every player of the market is interconnected and needs each other. For example, according to Zilvinas Lapinskas, CEO of FL Technics, despite the competition between independent MRO’s and OEM’s in the engine maintenance for NextGen widebodies, there are cooperation possibilities for players in the airframe maintenance. Original manufacturers benefit from cooperation with independent MROs, as it extends OEMs service network. And, respectively, MROs benefit from cooperation with OEMs, because it is very difficult to get the expensive maintenance license for individual technical operator.

In any case, competition and cooperation between both OEMs and MROs – is a long-term trend, which has become an integral part of the existing MRO market. Will the balance between MRO markets in Asia and North America be achieved? Probably, the answer to that question will come after decade or more. One thing is for sure - Asia grew rapidly in the recent years, but the crisis is over, and the North American aviation market as well has actively begun to return its power. Yes, it is expected that in the 2030 Asia will be the largest aircraft operator. But whether it will be the largest MRO market? Quite possibly, but not due to the maintenance of the NextGen widebodies. This niche can possibly belong to North America.