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IATA say strategic aviation investment can benefit world economies

IATA say strategic aviation investment can benefit world economiesThe International Air Transport Association (IATA) has urged policy-makers to use aviation as a strategic asset, advocating the “wide-ranging” benefits of a good relationship between the industry and government.

Tony Tyler, IATA’s Director General and CEO said: “When the relationship between industry and government works, the results are brilliant. Policies that support aviation’s competitiveness deliver wide-ranging benefits across economies by connecting business to markets.”

The IATA say that aviation is a key economic contributor. According to Oxford Economics studies commissioned by IATA, the aviation industry contributes 119,000 quality jobs and 5.4% of GDP in Singapore.

“The connectivity that aviation provides to Singapore has enabled it to develop as a successful regional hub for sectors as diverse as finance, healthcare, culture and education,” said Tyler in a keynote address to the Singapore Airshow Aviation Leadership Summit.

Tyler indicated India as one market that is missing out on aviation’s potential as a result of a policy framework that does not support aviation’s competitiveness, yet outlined Asia as an area driving growth.

IATA say that aviation’s centre of gravity is shifting eastward as a result of this growth. In 2010, around 33% of passengers travelled on Asia-Pacific routes, whilst around 31% of passengers travelled on North America and Europe routes.

By 2015, IATA’s passenger forecast anticipates that Asia-Pacific will represent 37%, whilst traffic associated with Europe and North America will fall to 29%.

In the same period, an additional 877 million passengers are expected to be generated – 212 million of which are expected to fly on routes associated with China.

Tyler pointed out that one challenge the growth of aviation presents is security. He said: . “Security is a top priority that must not be compromised. But everybody hopes for an early evolution from an airport checkpoint experience defined by queuing, unpacking, removing clothing, separating certain items and possibly invasive searches.

“The system works, but it is struggling to cope with today’s volumes. Growth will only make the challenge bigger. One of my priorities is to build global consensus that will see the Checkpoint of the Future improve the quality and convenience of airport security.”

The Checkpoint of the Future envisages using passenger data collected for immigration authorities to differentiate airport screening. Secondly, it incorporates technology expected to be available in a seven to 10 year time frame to enable passengers to walk through checkpoints without stopping or unpacking.

Tyler also called for cooperative policies to help reduce the price of sustainable biofuels to allow them to move into general usage and help the aviation industry rach its climate change targets.

Tyler said: “Positive economic measures such as emissions trading are a necessary, if temporary, bridge to reach aviation’s climate change targets. To be effective and avoid market distortions, these measures must be globally coordinated. Europe deserves credit for pushing this issue up the international agenda and it is at the forefront on emissions trading. But its unilateral approach must change.”

Photo: James Cridland

Etihad Airways operates first biofuel powered delivery flight

Etihad Airways operates first biofuel powered delivery flight 1Etihad Airways have operated the first sustainable biofuel powered delivery flight in the Gulf.

The 14-hour flight from Seattle to Abu Dhabi was the delivery flight of Etihad’s newest Boeing 777-300ER and arrived yesterday (24 January 2012).

James Hogan, Etihad Airways’ President and Chief Executive Officer, said: “This flight marks a significant milestone in our efforts to  support and drive the commercialisation of sustainable aviation fuel in Abu Dhabi, the region, and globally.”

The delivery flight of the airline’s newest and most efficient long haul aircraft was operated using a combination of traditional jet fuel and plant-based jet fuel, which is fully certified for use as commercial jet fuel.

James Hogan continued: “The use of a presently available biofuel is just one part of a more comprehensive long-term biofuel strategy to ensure that we are able to use biofuels to decarbonise substantially an entire industry sector in the long term.”

SkyNRG, an Amsterdam-based sustainable jet fuel provider, supplied the fuel, which is based on recycled vegetable cooking oil. As a plant-based source that has been used already for cooking purposes, it qualifies as a bio-based waste stream with a high sustainability value.

Dirk Kronemeijer, SkyNRG’s Managing Director, said: “We think the Middle East has great potential to give a critical boost towards making a market for sustainable jet fuel that is affordable.  With this flight Etihad Airways has taken a fantastic step, particularly in increasing awareness within the region. There is a lot more to come in this continent and we are determined to be there when that happens.”

Boeing also supported this initiative by supplying their ‘fly-away’ fuel, provided for every new delivery, as a biofuel blend.

Etihad Airways, as a member of the global Sustainable Aviation Fuel Users Group, has committed to a stringent set of sustainability principles when looking at opportunities for biofuel development and use. This includes ensuring that feedstock is non-competitive with food sources and does not jeopardise drinking water supplies.

With new regulations now being imposed on aviation carbon emissions, the commercial viability of biofuel is gaining even more importance. Starting this year, the EU emissions trading scheme (ETS) will require all airlines to pay for emissions and this is likely to lead to other such schemes around the world. Biofuel is considered  ‘carbon neutral’ as the plant biomass takes in carbon as it grows and releases it again during the combustion process, and this means that the use of biofuel as part of the EU ETS would be considered exempt.

Outlook for the aviation industry in 2012

Aviation Job Search Outlook for the aviation industry in 2012In order to prepare you as best we can for the year ahead we’re taking a look at some of the emerging trends we believe will be big this year in aviation and the impact they will have on hiring.

Last year was a somewhat turbulent year for the aviation industry, and as you would expect, there were both positive and negative trends evident for those in the sector.

At the end of December 2011, The International Air Transport Association (IATA) reported that global traffic results for both passenger and cargo markets were softening.

Tony Tyler, IATA’s Director General and CEO, said of the 2011 figures: “Weak global economic performance is being reflected in air transport markets. Freight markets have contracted some 4% compared to January. Although passenger markets have had some growth relative to the beginning of the year – about 2% – the trend has been both soft and volatile. Continuing economic uncertainty will likely mean market shortcomings deepening as we enter 2012.”

However, it wasn’t all bad news at the end of 2011. The world’s principal provider of data, analytics and advisory services to investors in aerospace, Ascend, announced that 2011 was the safest year on record, with fatal accidents and passenger fatality rates at their lowest.

There was a marked regional difference to passenger numbers across the globe. While carriers in North America saw a decline in traffic, the aviation industry in the Middle East and Latin America experienced increases of 10.1% and 9.0% respectively, according to the December 2011 IATA figures.

The success of Middle Eastern and Latin American aviation is a trend that is likely to continue into 2012, thanks to robust trade activity (Latin America), and gains in market share on long-haul markets through price competitive products (Middle East).

Despite the aviation industry suffering because of economic uncertainty, IATA believe that the aviation industry itself can be a catalyst for growth.

Tyler said: “The story of aviation’s importance is even more compelling as governments around the world seek solutions to economic uncertainty. Economic growth is the only durable solution. Aviation can be a catalyst for that growth. But that depends on governments allowing airlines to get on with the business of providing global connectivity. The New Year’s resolution for every government with respect to aviation should be to stop over-taxation of mis-regulation of this vital economic driver.”

Reducing carbon emissions
One of the key influential factors on the aviation industry in 2012 is the environmental impact the industry has – and how to control this. The CAA states that aviation will only be able to fully realise its economic potential through tackling its environmental impact. In January 2012, the CAA set out four goals for its work, including to contribute to a cleaner and quieter aviation industry and to improve airspace design through new operational measures.

The development of lightweight, composite components is becoming increasingly important as the aerospace industry strives to reduce fuel consumption and emissions, and it is likely that people with skills and experience in this area will be in demand in 2012.

This is exemplified by the January 2012 opening of a new aero-engine facility on the Isle of Wight. The £14.8m facility, a joint venture between Rolls-Royce and GKN Aerospace, will employ 70 skilled engineers and has been supported with £7.4m in funding from the UK government.

Business Minister Mark Prisk, who opened the facility, said: “It is ventures like this that are helping to place Britain as a world leader in the growth area of low carbon solutions, while affirming our commitment to providing the technological needs of the future.”

London 2012 Olympics
The London 2012 Olympic Games will have a profound impact on the aviation industry in 2012, particularly in the UK. Upwards of half a million international visitors are expected for the 2012 Olympic Games, the majority of which will be travelling by air.

Many will travel on scheduled flights but some 700 extra charter flights and some 10,000 business jet movements are expected during the Olympics period.

This will mean that those working in London airports and in parts of the aviation industry connected with London airspace, as well as pilots, cabin crew and security staff, will have to adjust their procedures to cope with the extra demand to ensure safety and avoid congestion and delays.

The Department for Transport (DfT) is working with the Civil Aviation Authority (CAA), the en-route air navigation services provider (NATS), the Ministry of Defence (MOD), the Borders Agency (UKBA) and aviation industry stakeholders to meet the challenge posed by the London 2012 Olympics.

London Olympics Pilot Briefing Event
In particular, pilots looking for help to prepare for flying in the south east of England during the 2012 Olympics may wish to attend a free briefing day in London on Saturday 10 March 2012. The event, hosted by the Royal Institute of Navigation (RIN) and the CAA, will offer information how pilots will be affected by the Olympics and how to deal with the changes. For more information, visit the Airspace and Safety Initiative website.

Photo: xlibber

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