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The air transport sector in the Middle East is undergoing a rapid transformation as passenger traffic begins to surge in the region, primarily because of the swift expansion of airlines such as Emirates, Etihad and Qatar Airways. Meanwhile, the Dubai, Abu Dhabi and Doha airports have launched massive expansion projects to match future traffic forecasts. They will have a combined capacity of 340 million passengers a year by 2020. Passenger traffic at the three hubs continues to grow by leaps and bounds, regardless of regional disruptions that affected traffic in the Middle East last year. Much of this is testament to the strength of their home carriers, the development policies pursued at each of the airports and local governments visions to transform their cities into major aviation centres. Qatar Today puts the spotlight on Hamad International Airport, the latest entrant to the competition, to find out how it will affect the other hubs in the region. By Sindhu Nair

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The sky is the limit

Check-in counters at the Passenger Terminal

HIA: A new era in

The silence as we walk into the Passenger Terminal Complex is interrupted only by the gentle echo of a water body. The fact that the huge premises have still not opened their doors and begun their anticipated undertaking contributes to the almost eerie peace. But I presume it has more to do with the architecture of the large space than with the absence of activity. Inside the humongous passenger terminal of the Hamad International Airport (HIA) for an exclusive premiere of the facilities before it opens its doors next month to 12 airlines, I feel I am part of a landmark moment a moment that is sure to rewrite the history of air transport in Qatar. Not everyone might agree with this, given the

passenger travel
umpteen delays and bad press that the construction of the airport has gone through before it finally raises its curtains. The architects of HIA, though, have kept their promise of a space that dazzles and of a mission that goes well beyond that of an ordinary airport. This fact is corroborated by Bernardo Gogna, Director of the New Doha International Airport Steering Committee and an architect who is reluctant to be in focus but desires that the edifice itself takes the limelight. The sense of space, with the sunlight streaming in through the beautiful skylights, the signage that is functional without being conspicuous, technology that is the best available all this

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Landmark Features:
HIA stretches across and includes multi-concourse Terminal 1 (opening next month), the Emiri terminal, a mosque, a second passenger terminal (future expansion), vehicle rental and car facilities, cargo, a maintenance hangar and catering facilities.

29 square kilometres

brings the passenger experience far beyond what constitutes an airport, he says. Gogna goes a step further and calls the HIA a luxurious resort, with lounges and services that will make it seem like one, he says. Artfully designed There is one aspect of the airport that truly classifies it a notch above other airports in the world. There is no airport, not that I know of, which has a museum within its premises. And HIA will have a museum space with art that will engage passengers and remain with them forever, he says. The retail space is also artfully designed. But the fact that there is a delicate balance between all these facilities without being overly ambitious on any one of these features is what makes the HIA a benchmark in airport design, says Gogna. Reflecting on the concept of the design, Gogna says: The inspiration for the airport was from the fact that we were situated on the edge of the water body. The notion of the water concept begins from this and is carried forward in the wave-like structure of the roofs of the terminals. The wave is especially prominent on the departure terminals, replicating the notion of departure, of the movement of people from one destination to another, something that is a constant in an airport. The movement of the roof also follows with the movement of the passenger. There is a transition of the functionalities, and then there is the plaza where all the passengers come to. From destination passengers to transit passengers (who constitute 70% of the total movement), everyone moves through a huge space called the plaza. It is utilised as a medium to portray the social fabric and cultural happenings of the country. This is not advertising, which is typical of the Times Square model. This is more

Bernardo Gogna
Director of the New Doha International Airport steering committee

like a methodology to let the world know what is happening in Qatar, says Gogna. This is one of the reasons why the project is so important, he explains, because the airport becomes much more than what it typically should be it serves as a highly-evolved public facility that puts art, architecture and culture together. The museum concept, which was also introduced in airports for the first time in HIA, is not for decoration, insists Gogna, it is integration. Hong Kong Airport and Singapores

Changi Airport are believed to be the best airport designs in the world. And while the HIA has imbibed features from the best designs, it has also tried to improve on them, according to Gogna. In the end, the deciding factor for any architectural project of this scale is the client, and how many of the ideas get translated into breathtaking architecture. A project is only as good as the client, says Gogna, The Steering Committee of the project was adamant on creating a masterpiece. The project was a challenge for us

(cont on pg. 48)

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The sky is the limit

From one plane a month to hundreds of aircraft movements

The history of air transport in qatar goes back to the 1950s when the oil companies needed transportation for their personnel and equipment. One man who has seen it all the humongous growth of the sector from one plane using the facilities per month to a hub with thousands of movement is the Chairman of Qatar Civil Aviation Authority (QCAA), HE Abdul Aziz Al-NOAimi. In an exclusive interview with Qatar Today , he takes a trip down memory lane commenting on the sustainable path to be adopted by aviation hubs.
The combination of a well-oiled and efficient national carrier and a technologically advanced facility gives Qatar the edge, says HE Al-Noaimi. Without a national carrier the facilities would cater for foreign airlines, which would reduce profit within the country. Without the facilities within the country the airline would have to outsource facilities, he says. It has been a huge journey for the country, for a facility that in the 1950s was used for one plane monthly to be catering for 28 million passengers per year. For someone who has witnessed this growth, share with us your memories. The need for the air transport sector appeared in the 1950s, when oil companies required transportation for their personnel and equipment. The first runway was established in the western part of the country, followed by two others, one south of Umm Said and another east of Doha, for commercial air transportation, which used to operate one plane per month. HE Abdul Aziz Al-NOAimi Over the years, as economic and social Chairman of Qatar Civil Aviation Authority (QCAA) development in the region progressed, Qatar wisely invested in its own aviation and cargo services and has today estab- international standards of aviation safety benefit and for the wellbeing of the people. The significance of seeing one plane per lished a new aviation hub the Hamad and security. The remarkable vision of HH Sheikh month was indeed a sight to remember International Airport (HIA) that will not only support the incredible growth Hamad bin Khalifa Al Thani, Emir of the and an occasion! The irony now is seeing of our national carrier, Qatar Airways, Qatar, in planning, suggesting, guiding and hundreds of aircraft movements daily, and but will also meet the increasing pas- watching all projects closely has motivat- taking that to be the norm and business as senger traffic without compromising on ed the country to lead and develop for its usual.

Mosque
The water-droplet-inspired structure of the mosque has a glass shell with a gently domed roof, and can accommodate 500 worshippers.

35 m

Minaret

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What will be the challenges for the QCAA with the new airport launch? The main challenges will be to manage a facility of that size efficiently and to ensure the integration of commercial, corporate, and other organisations that operate in the airport. Since HIA is equipped with stateof-the-art technology, it needs constant vigilance against hackers and malfunctioning; other elements include updating software and annual maintenance of all equipment. Another challenge will be implementing the necessary training system for all departments to communicate, interact and relay messages and work as a team. What makes Qatar the perfect aviation hub in the region? Qatars strategic location in the Middle East region makes it a natural geographic link between the global East and West. As a result it is emerging as an attractive location for many political, economic and intellectual groups and is also the venue for political forums, international conferences, world-class conventions, and cultural as well as international festivals. The period of great expansion and accelerated growth that Qatar is undergoing contributes to the country becoming a focal point for culture, knowledge and business for the 21st century. In addition, our national carrier Qatar Airways travels to over 100 destinations, which opens up more opportunities and increases the number of passengers passing through Doha. The HIA is fully geared to be an aviation hub that will be able to cater for 50 million passengers per year (at full capacity), with both runways allowing for a traffic capacity of 100 aircraft movements per hour.

Does it matter that there are other hubs in close proximity? How does it affect competition? The GCC region has recorded investment to the tune of QR328 billion ($90 billion) in the setting up, refurbishment and expansion of airport infrastructure. Every country in the region is in the process of expanding its air, road and sea transport and cargo handling facilities, as demand grows for goods and services from across the world. According to this fact, we will witness a number of world-class airports competing to provide the highest level of services related to the aviation industry, retail business, travelling standards and cargo facilities. Will the QCAA look at encouraging more private entities within the Airport? The QCAA certainly looks at encouraging more private entities within the airport, according to the framework and standards set by the Council of Ministers. The Middle East cargo market has remained relatively robust, growing 8.2% during 2011 and more than 15% in 2012. How do you think having the new facilities will help improve this market? Across the Middle East region there is an increase in investment in various infrastructure projects. The Emirs National Vision 2030 has outlined the ambitious plans for Qatar. In addition, there is a growing focus on manufacturing in the region. These developments have a significant impact on the growth of the cargo market. Qatar has carefully studied this growth and planned for the cargo facilities at the new airport accordingly. The opening capacity of the Cargo Terminal is 1.4 million metric tonnes per year, with full capacity set to increase to 2.5 million metric tonnes.

Abu Dhabi Airports Company (ADAC), the operator of Abu Dhabis five airports, revealed that Abu Dhabi Duty Free retail revenue reached AED809.5 million in 2012, an increase of 24% over 2011. How will Doha compete with this? We very much admire the UAEs unique and long experience in the domain of developing duty free retail. The equation is governed by the percentage of passengers who use airports duty free markets and the way it is presented and promoted. The experience of Qatar in this field has come a long way and it is growing rapidly. When the aviation sector is going through a lean phase globally, how is it that all the Middle East airlines post positive results. What is the reasoning and do you think this is a sustainable growth for all the hubs? The growth rate in the Middle East has been affected to a large extent by the world crisis, but it did not stop. Positive or negative growth is influenced by both the situation of world markets as well as the political stability of each country. I think that the growth rate will match the increased needs of these markets. There has been an allegation by a private entity that operates within the Doha International Terminal that its growth is being hampered by the Authority. How do you respond to that allegation? The QCAA is responsible for regulating aviation operations and managing the aviation hubs in the State of Qatar has the right and the full authority to take the appropriate action in case any airline company operating within the Doha International Airport breaks rules and regulations.

Passenger Terminal Complex

600,000 sq m 41
terminal contact gates

central utility plants

3 29 ha
lagoon

car parking SPACES

3,450 6,900 sq mt
transportation facility

limousine staging CAPACITY

passenger loading bridges

100 88

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The sky is the limit

Transport

There will be extra focus on an efficient street and public transport network that will serve to promote energy efficiency and mitigate excessive travel times and distances. This comes within the Airport City that is part of the master plan of the HIA and will be completed in the next phase. The transport hub created by the Terminal 2 Complex will attract travellers, and the development area will be commercially attractive. Rail, metro, bus and extensive road network linking to the Business District will create an interface between this area of HIA Airport City and the centre of Doha. The three functional zones of the terminal are the rail concourse and business centre; Terminal two; and the Terminal 2 Plaza, which connects the air and rail functions of the development. The terminal will be an airsidelandside link and an area where local and international business will converge. In the levels beneath the air terminal, the Metro (Red Line) and LDR rail links stations provide links for passengers to greater Doha and future rail services to Saudi Arabia, Bahrain and the UAE.

Interior view of the Passenger Terminal

Art Programme
sites within and around the terminal regional and internationally acclaimed artists
(cont from pg. 45)
as the pressure and complexity of the requirement was high, but on the other hand the result was the building. The continuous interface between the Steering Committee and the project team made sure that the features and architecture remained very competitive in comparison with the best. Airport City Another revolutionary project is the HIA Airport City, a project spanning 10sq km, where 200,000 people will work and live. According to Rem Koolhaas, the concept architect of the city, it is perhaps the first serious effort anywhere in the world to interface between an international airport and the city it serves. Downtown Doha will be within five kilometres of the airport, linked to the new urban fabric of Airport City and its new transport connections. The master plan has been conceived as a series of four circular districts, connected by what is called a Green Spine running parallel to HIAs second runway. HIA Airport City is intended to provide infrastructure to maximise the commercial functionality of the growing airport.

28 14

gates with Hold Rooms

20

Concourses A & B

Seats per Hold Room

270

Departures Hall
column-free space

first class check-in booths

Business class check-in desks

25,000 sq m 24m 150 14 16

high ceiling check-in stations

The typology of Airport City is in response to the growth of air travel, requiring the expansion of the existing airport and its encroaching into the fabric of the city. The city is thus targeted for optimised development of the transport hub of an airport and its surrounding airside and landside supporting functions, says Gogna. Because the city is close to the airport, HIA Airport City makes a unique case and an opportunity to create a buffer zone of development. It is planned to serve the best interests of both the airport and airside functions and the city, he explains. The development connects, but also separates, the city from the airport, he says. HIA Airport City will have established zones: the business district, the aviation campus, the logistics district and, meeting a newly-constructed marina, a residential district. The 30-year master plan of the HIA project that substantial parts of the business district and all of the aviation campus will be developed within 10 years.

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We dont rely on any particular market

As the airport operator and main airline user of HIA, Qatar Airways CEO Akbar Al-Baker always dreams big. Qatar Airways (QA) is also known as the aggressive player in the aviation sector, expanding destinations and buying new aeroplanes. Steering this growth is Al-Baker, who is said to have an eye for detail and in his own words, is never complacent. He speaks exclusively to Qatar Today on the aviation sector and the new member in the Qatar Airways family, the Hamad International Airport.
seems like the aggressive airline is continuing to increase its destinations as Al-Baker says: By the end of 2015, we expect to be flying a fleet of 170 aircraft to 170 destinations worldwide. This compares with the current fleet of 119 aircraft (as of end of February 2013) and 125 global destinations. The first phase of the QR56.4 billion ($15.5 billion) airport project involves a select few international passenger airlines becoming the launch carriers of the new facility. The new facility is a global showpiece, which will accommodate 28 million passengers annually when it opens this year, increasing to 50 million passengers beyond 2015. One can expect a truly worldclass experience at the newest aviation hub, reiterating QAs commitment to creating a superior travel experience, he says. The aviation sector is a very volatile sector. It is affected by fuel prices, the global economy and by events such as natural calamities and disease outbreaks. How true is this for QA? Its been just over 16 years since QA relaunched and you can imagine that there have definitely been some ups and downs along the way. What is crucial is to have a solid business model in place and a clear vision not to lose sight of our strategic objectives, set out in 1997 at the time of our relaunch. While other airlines were shrinking their operations, cutting capacity, reducing staffing levels and parking aircraft, QA actually expanded relentlessly, growing its route map, fleet size and staff numbers. QA currently flies a modern fleet of 119 aircraft to 125 key business and leisure destinations Akbar Al-Baker
CEO, Qatar Airways

it

across Europe, the Middle East, Africa, Asia-Pacific and the Americas with the aggressive expansion continuing into 2013. Our business model is such that we dont rely on any particular market. We have a diverse market mix and diverse network, and we are able to easily shift capacity around according to market needs in good or bad times. With the aviation sector globally just pulling through, how have Middle East carriers managed to keep their heads above water? Is it only from government support or is the region proving itself above the volatile conditions that affect airlines as such?

The Middle East, despite the global economic slowdown, has proven to be one of the fastest-growing and robust aviation markets in the world. I believe that the Middle East will continue to outperform the rest of the world in the levels of service offered. We cater for such a multicultural passenger mix. By following the hub-andspoke operation model we carry passengers from around the world with a value-formoney offering and excellent in-flight experience. Our fleet is modern and our service is impeccable, which is why we garner awards, exceeding customers expectations. Todays customers want value-for-money and quality of service. We offer both, unlike many airlines around the world.

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The sky is the limit

The Cargo Terminal at the Hamad International Airport

In a recent study by the Germany-based Jet Airliner Crash Data Evaluation Centre, Finnair was rated the safest airline, while China Air was 60th out of the 60 surveyed. QA was mid-table with Emirates and Etihad in the top 10. What makes an airline especially safe to travel with? Safety is always a high priority for us. The airline made history in 2003 when it became the first airline in the world to pass IATAs new, stringent IOSA safety audit with 100% compliance and we have continued to pass the audit with full compliance ever since. Audits are carried out regularly, and we at QA take great pride in ensuring we have 100% compliance with safety and security procedures. What is Qatar Airways stand on Boeing 787, given the fact that you have ordered 55 of them? Will you be going ahead with the order? Safety remains the number one priority for QA. We ensure all our aircraft meet the most stringent safety standards and this

will not be compromised in any way. We are actively working with Boeing and the regulators to restore full customer confidence in the 787. Qatar Airways will resume 787 operations when we are clear that the aircraft meets the full requirements of the airworthiness directive. So we are not flying the aircraft until such time as this is achieved. The Dreamliner is a wonderful state-ofthe-art aircraft, with a revolutionary design and environmental credentials, and we are confident that once the issues are resolved we will continue to operate the aircraft. With three hubs in close proximity, what will make customers favour QA and HIA over the others? Do you believe in following the numbers game? We do not believe in the numbers game, but truly strive to offer the best levels of worldclass service to our customers. As the airport operator and main airline user of HIA, Qatar Airways will ensure that the airport experience surpasses expectations in operational excellence and customer experience, and strive to be the best aviation hub in the world. This is a world-class, iconic

airport that is set to open, creating great new benchmarks in design, structure and experience. We look forward to welcoming the world through this wonderful new gateway. Today, the airline has orders for over 250 aircraft worth more than QR182 billion ($50 billion). What are its procurement plans for the next couple of years? We continue to grow with clear strategic objectives. Right now, we are looking forward to moving operations to a brand new airport, and we look forward to taking delivery of a brand new fleet of aircraft that includes the Airbus A380 superjumbo from next year, and developing our route and aircraft numbers even more. You have stated that only 18% of your customers are local. Does that mean they will be at a disadvantage? Qatar Airways and most airlines from the Middle East follow the hub-and-spoke business model for their route networks. With a relatively small population base in our

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respective markets, it is essential as part of our business model to fly passengers from around the world to destinations around the world using Doha as a key hub. Our central geographic position gives us significant advantage as we are located at the crossroads of East and West. Our operations are designed to provide convenient connections for travellers transiting through to onward destinations. This does not mean that our local customers are at a disadvantage. Like all our passengers worldwide, the local population is offered the award-winning world-class service and in-flight experience that we are known for, taking them to over 120 destinations spreading across six continents. Is it true that the service is disparate across sectors at QA ? This is not true. As a testimony to our successful operations, in a short span of just 16 years, QA remains one of the fastest-growing airlines in the world. Due to the continued support of our passengers and with the hard work and commitment of our employees, we have been awarded, for two consecutive years, Worlds Best Airline at the annual Skytrax awards. This is an incredible achievement for a young airline in todays highly competitive global aviation industry. We take great pride in our service, our high standards, our employees and the people we serve our passengers. What would your prime aim be as the operator of HIA? Comfort, class or over-the-top-luxury? Our primary aim is to make HIA the best airport in the world. This can only be done through the dedication and commitment of airport users, be they airlines or employees, to making the passenger experience as comfortable and hassle-free as possible. We will continue to drive high operational standards, high quality and great efficiency in the running of the airport and hope to reaffirm Dohas position as a premium global hub with the opening of Hamad International Airport this year. There will be an incredible number of great features within the airport luxury lounges, a monorail transport system within the terminal complex, and fine finishes. Doha International Airport claimed to have the strongest traffic in 2011, but this year Dubai International has be-

Our primary aim is to make HIA the best airport in the World. This can only be done through the dedication and commitment of airport users, be they airlines or employees, to making the passenger experience as comfortable and hassle-free as possible.

It is not our business to comment on competitors. We operate in a competitive business aviation environment with impressive players across the region. Qatar Executive truly demonstrates that it is a cut above the rest with its superior in-flight experience offering. As a person who has been instrumental in steering QA to its heights, what are your dreams about the company? What were your biggest challenges? I am never complacent and do not rest on my laurels. I firmly believe in further growing our international network and continuing to provide our passengers with the best levels of service and the best available inflight product that they so deserve. QA is known for two key features: dynamic growth and a constant focus on topquality service, where the customer is at the heart of everything we do. Listening to what the customer wants and delivering it is our top priority through good times and also through challenging phases. We have faced challenges in the form of rising fuel costs and political unrest in parts of the Middle East. But we remain focused on doing our job and rising to the challenges. Another big challenge we have been facing is that the current Doha International Airport is running at full capacity, unable to withstand the airlines rapid growth. This challenge is shortly going to be overcome with the opening of HIA this year. Do you ever relax, let your guard down? And what is the one piece of advice that you would give young Qataris looking to move ahead in their careers? I never let my guard down. I am a focused individual. I cannot stress enough the importance that education plays in our lives, which helps shape our future. Qatari youth should take pride in our beloved nation, which is why so much resource and faith is being put into the youth of today as the leaders of tomorrow by many Qatari organisations, including QA. My advice is to make informed decisions about the type of career you want to pursue. At QA we have a career path that is second to none, with a record number of 150 places on offer for Qatari graduates and undergraduates in various capacities at the national airline from the beginning of the 2013 academic year.

come the third-busiest airport in the world in terms of international passenger numbers, according to the airports figures. How do you fare against the competition? From 17 million passengers in 2011, Doha International Airport handled approximately 20 million passengers in 2012. In 2013, we are estimating the total number of passengers to exceed 24 million. With the dramatic growth of QA, Doha International Airport is becoming too small to handle the surge in air travel to and from Qatar. In line with the mission of QA to be the worlds best, our newest family member, HIA, is positioned as an international icon that promises to make waves on the global stage through its sheer size, masterpiece design and innovative features. The preparations are well under way for the April 1 opening. How will you build the retail arm of the HIA, what will be the focus from here on? HIA will have more than 40,000 square metres of retail facilities and passenger lounges. QAs subsidiary Qatar Duty Free will be the operator of the retail facilities, featuring exclusive branded boutiques and products to cater for passengers from all walks of life. It promises to be an unrivalled airport shopping experience. How well is Qatar Executive faring? There have been allegations from Rizon Jet that QCAA is interfering in its regular business, making it difficult for the company to operate its services. What is your reaction to that?

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The sky is the limit

Dubai Airports

Always a step ahead

Cynics arent impressed BY Dubai announcing projects that WILL either be the worlds tallest or longest or one that is the first ever built, but the fact is that with tourists pouring into the country, the Dubai model does seem to be successful. Dubai Airport has moved ahead of Hong Kong Airport TO becomE the third-busiest airport in the world, according to AirportS Council International figures in 2012.
keep up with the flow of tourists, Dubai Airports announced last year that HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has endorsed its QR28.4 billion ($7.8 billion) airport and airspace expansion programme, which will boost capacity at Dubai International from 60 million to 90 million passengers per year by 2018. The plan is designed to deliver aviation infrastructure that will support the continuation of the sectors impressive growth, facilitate Dubais economic expansion and generate 22% of total employment and 32% of the emirates GDP by 2020. It is responding to a ten-year traffic forecast for Dubai International (DXB) and Dubai World Central (DWC) that projects that international passenger and cargo traffic will increase at an average annual rate of 7.2% and 6.7% respectively. Anita Mehra, Vice President of Marketing and Corporate Communications for Dubai Airports, tells us how Dubai flies so high. How many passengers went through Dubai Airport in 2012? How much growth is this against previous years? What percentage of these passengers were in transit? In 2012, Dubai International handled a total of 57.68 million passengers, an increase of 13.2% from 50.97 million in 2011. Transit passengers constituted 57% of the total traffic. How many flights go in and out of Dubai airport each week? How much growth is this against previous years? What

To

Anita Mehra
Vice President, Marketing and Corporate Communications, Dubai Airports

percentage of these are with Emirates? Total aircraft movements for 2012 reached 344,245 (an average of approximately 6,600 movements per week), up 5.5% from the 326,318 movements recorded in 2011. Emirates is the single largest contributor to activity at Dubai International and accounts for approximately 60% of total passenger traffic. Dubai International Airport is the third busiest airport in the world. What has propelled the airport to such a position? How important is your geographical location, and what makes Dubais airports stand out against others? Dubais geo-centric location is a major ad-

vantage, and coupled with our aviation model which is a direct result of the grand vision of the political leadership and revolves around a liberal regulatory climate the key factors in our growth story are a tax-free business environment, a customercentric focus that provides value for money, and close coordination and collaboration within the sector. Thanks to Dubais open skies policy the airport is connected to 260 destinations across six continents, through more than 140 airlines, and continues to attract more carriers. The combination of a successful tourism industry, Dubais proximity to the emerging economies of the East, and the emirates established role as a trading hub linking economies in the Far East, Europe, Africa and North America will drive growth and further consolidate Dubais status as a global centre for trade, tourism and commerce. The success of Dubais flagship carrier, Emirates, and the meteoric rise of our low-cost carrier, Fly Dubai, will also remain a major factor in our future growth story. Dubais progressive approach to aviation is the key difference. The success is attributed to a model that is consensus-based, highly competitive and consumer-centric. This generates significant economic benefits for Dubai and the countries it connects. How do you market the airport, with Dohas Hamad International Airport and Abu Dhabi International Airport in close proximity? We position Dubai International as a hub that provides top airport infrastructure, the highest connectivity for international passengers, a competitive tax-free environment, a 50-year track record of high traffic growth and a promising future in terms of the projected growth of the sector.

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Gulf Air

Flight plans
While its two neighbouring national carriers are reaping gold, Bahrains airlines are struggling. Bahrain Air the privately-owned low-cost carrier has shut down citing political unrest in the island kingdom to be the reason.
Air, the 63-year-old former flag carrier of Bahrain, Qatar, the United Arab Emirates (UAE) and Oman, has declined steadily since three of its member states broke away to establish independent carriers. Gulf Air has faced challenges in recent times, in common with other global carriers, but it says that combinations of unprecedented regional and economic factors have made business increasingly difficult. Given this, Gulf Air, its shareholder Mumtalakat and the government, both through the cabinet and parliament, are all working towards a common goal - to secure Gulf Airs long-term sustainability and to actively address the airlines loss-making position. Just before we went to print, Gulf Air sent another statement regarding the belttightening measures adopted which stated: Despite a difficult operating environment, restructuring measures have started yielding results and the strategy remains on track to achieve overall cost savings of 24% by the end of 2013. In January 2013, through the implementation of prudent cost saving measures and an aggressive efficiency drive, the airline reduced its overall losses by over 34% compared with January 2012, posted a 9.6% increase in passenger revenue against its budgeted revenue and, increased its yields by over 8%. The airline also cut its expenditure significantly through reductions in aircraft lease fees, flight-related charges and staff expenses and the closure of four loss-making routes. Based on current progress and the estimated forecasts, the restructuring plan is on track to achieve its cost-savings target by the end of 2013. Indications are also strong that the revenue per available seat kilometre (RSK) will achieve the targeted 9% in-

gulf

Maher Salman AlMusallam

Acting CEO, Gulf Air

crease in 2013 through the establishment of robust performance frameworks designed to deliver greater efficiencies. When asked about the strategic steps taken by Gulf Air to ensure it is competing with the larger airlines in the region, Maher Salman AlMusallam, Acting CEO, Gulf Air says, Gulf Airs business model is different from that of the larger regional carriers. As part of the current Gulf Air restructuring process, the airline is optimising its fleet and network by strengthening its core services in the MENA markets and concentrating on high-demand and high-yield point-to-point routes to connect Bahraini businesses with regional markets. As such, the airline operates one of the largest networks in the Middle East and operates flights to regional capitals including Amman, Baghdad, Beirut, Cairo, Khartoum and Sanaa. It also operates multiple daily flights to its entire GCC network including Kuwait, Doha, Abu Dhabi, Dubai, Muscat, Jeddah, Riyadh, Medina and Dammam. The airline is focused on four key areas fleet, network, product and cost to offer

passengers more value for money, a network reflecting customer demand as well as new and improved products. In addition, the airline is continuing to strengthen its Middle East network, retaining Gulf Airs position as the largest regional network carrier while connecting key global markets with Bahrain, he says. Gulf Airs restructuring strategy is aimed at taking the airline on a path towards sustainability. The main challenge for the airlines in the next five years, according to Maher Salman AlMusallam, is fuel prices, which continue to be a major challenge for the entire aviation industry. Gulf Air, like other airlines, is impacted by the global economy in addition to the growing competition both regionally and globally, he says. The optimised fleet and network will see Gulf Air operating a mix of wide, and narrow body aircraft with one of the youngest fleets in the region (a little more than four years) offering best-in-class products and services, he says.

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The sky is the limit

Flying Digital
In a highly competitive market, airlines are increasingly embracing technology as A means to develop their brand and keep up with evolving consumer expectations.
By Damian Radcliffe
aviation industry is a notoriously tough business. Capital outlay, repairs, taxes, high fuel costs, regulations and competition all contribute to creating an expensive and challenging environment in which to operate. As a result, history is filled with high-profile examples, from Pan Am to Laker Airways, of carriers who ultimately vanished from our departure boards. Over the years, strategies to redress the challenging economics of our skies have included code-sharing, alliances and full-on mergers, such as the 2011 union between Spanish national carrier Iberia and British Airways. Other solutions have been more creative. American Airlines famously once realised it could save QR218,400 a year by removing the olive from the salads they served in First Class. As Southwest Airlines Herb Kelleher once quipped: If the Wright Brothers were alive today, Wilbur would have to fire Orville to reduce costs. In the digital age these pre-existing financial challenges are heightened by increased consumer literacy. Many of us take for granted online tools like price comparison websites or forums where we can discuss and compare seat pitches, inflight entertainment systems and food options. Yet a decade ago, these (now mainstream) information outlets either didnt exist or were still in their infancy. The explosion of social networks and smartphones in the last four to five years has added a further information layer. The net effect is that the average airline customer is now better informed, and better able to share their views and experiences, than at any time since Kitty Hawk took to the air in 1903. Responding to this new age of connectiv-

The

examples of local engagement via the two biggest social networks,

as of February 19, 2013

Twitter followers

Facebook Likes

Qatar Airways Emirates Etihad Gulf Air Fly Dubai

63,288. Updates: 8,466 @qatarairways 51, 142. Updates: 402 @Flying_Emirates 15,305. Updates 4,215 @EtihadAirways 14,976. Updates: 3,095 @GulfAir 1,351. Updates: 0 (Site not active) @flydubai

706,454 1,293,872 341,905 51,012 6,270

Mainstream pre-flight consumer tools we now take for granted

Booking online both direct with the airline or through third parties like Expedia Price comparison tools like Kayak or Skyscanner Choosing the best seat, or avoiding the worst ones, via SeatGuru Forums like FlyerTalk dedicated to deals, frequent flyer schemes and other tips

ity is a challenge, not just for airlines but for any customer-facing service organisation. In 2010 RightNow, a cloud-based customer service provider, commissioned a study to investigate how social networks were changing consumer expectations. Its report showed that consumers increasingly expect interaction via social channels and that the social web is often their first port of call in the event of a problem.

However, the study also found that these consumer expectations frequently outstripped businesses willingness, or ability, to engage with these emerging channels. As a result, companies increasingly risked losing control of the conversation. Clearly, this remains a risk. But writing in Airline Passenger Experience in late 2011, Shashank Nigam noted that whilst the social era may be frightening for an industry that has traditionally held firm control over marketing and operations, but it has also given airlines the unique opportunity to understand what drives customer actions better than ever before. Subsequently, after spending much of the past decade on the digital back foot, many airlines are going social harnessing networks like Facebook and Twitter, as well as putting out e-mail newsletters to drive customer loyalty, engage with new consumers, and garner feedback from service users. The most obvious example of this sort of digital activity has been the provision of highly reactive customer support and timesensitive social-media-only deals. But airlines are increasingly being creative too.

M a r c h 2 0 1 3 | Qatar Today

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Air New Zealands quirky in-flight safety video, #richroll, has had nearly 2.8 million views on YouTube [http:// youtube/3iaTEgoezNQ], surely a somewhat secondary audience, but one which projects the image of the carrier as fun and creative. Watch it, and I defy you not to smile! On a simpler but promotionally no less effective level, the Uruguayan carrier Pluna Airlines offers bonus frequent flyer points if you share your booking details with friends across a number of social networks. And when Virgin America opened its new terminal at San Francisco International Airport it ran a virtual scavenger hunt, encouraging participants to check in on Foursquare so they could win online badges that could be turned into real-world prizes. In each of these instances the financial cost to the airline is pretty small. But by encouraging users to share their experience with their own social networks they are able to enjoy a far greater and potentially

Examples of digital experiences we now often take for granted

Online check-in QR codes and electronic boarding passes In-flight Wi-Fi and mobile reception Personalised at-seat entertainment services Engagement via social channels

more effective reach than through traditional digital marketing. After all, such social sharing is the new word of mouth. And thats the most trusted advertising medium there has ever been. If some of these ideas seem like gimmicks, its worth considering the size of some of these audiences. They may be bigger and more influential than you think.

Last October, when Emirates celebrated its 27th birthday by launching an official Google Plus account, it attracted nearly 100,000 followers in a week. At the same time, a post on Emirates Facebook page announcing this new social channel received 10,000 likes in one day. Although Middle East based carriers like Emirates are starting to really engage in this space, theyre arguably still behind in terms of the digital audiences enjoyed by some of their US-based counterparts. JetBlue, for example, currently has 1.7 million Twitter followers, considerably more than all the MENA carriers combined. And for those who say that size isnt everything, its worth looking at American Airlines. It has a smaller Twitter audience than JetBlue and a number of other airlines, but it is very digitally engaged, having sent 145,000 tweets to date. These figures dwarf the level of activity (see chart below) for carriers in our own region.

RANK

BRAND 3 1 35 2 2 1 .... 0 .... 0 .... 0 4

73,557 views 62,950 fans 97,164 views 16,912 fans 356 followers 38,901 fans 947 views 39.009 fans 80,822 views 25,255 fans 21,160 views 23,609 fans 14,467 views 16,912 fans 835 views 22,627 fans 24,328 views 22,979 fans 3,524 views 4,631 fans

AGGREGATED NET INCREASE THIS WEEEK

680 followers 90,410 fans 3,058 followers 36,518 fans

ENGAGEMENT INDEX

1 2 3 4 5 6 7 8 9 10

EMIRATES

51% 4% 100%

BRITISH AIRWAYS

ALITALIA

AZUL

2,218 followers 8,537 fans 6,551 followers 1,953 fans 808 followers 2,213 fans 3,058 followers 36,518 fans 35 followers 36,518 fans 628 fans 1,521 fans

28% 26% 24% 27% 30% 7% 6%

Seina Weibo

KLM

Air FRANCE

TURKISH AIRLINES

LAN AIRLINES

2,539 followers

DELTA AIRLINES

GOL

954 followers 8,733 fans

Social Network Key YouTube Twitter

Facebook

Google Plus

VK

RenRen

Tencent Weibo

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The sky is the limit

Importantly, they use Twitter as a twoway communication channel, not simply a broadcasting mechanism (this is an important characteristic of social media success). Many of Americans tweets therefore are in response to direct questions, complaints or comments from users. Jonathan Pierce, Americans Director of Social Media Communications, recently revealed that they receive 1,200 [mentions or direct messages] every day, often from customers in transit seeking a quick response to a query. For these consumers social media is a helpline. And theyre more likely to seek an answer via these channels than through the airlines helpline. As a result, American Airlines currently employs six staff to look after Twitter alone, with another nine employees looking after their other social feeds. (And unlike many of their competitors, these services are manned 24/7, as befits the round-the-clock nature of their business.) So, what happens next? Evidence (see graphic) suggests that social media spending is, in most cases, going to increase. For most airlines, the digital case has been made. And won. The challenge now is to address key questions around resourcing, HR policy and return on investment (ROI). Theres an opportunity, too. If airlines have started to get the benefits of going digital in supporting the pre-and post-flight experience, then surely the next step is to do so when passengers are in-flight. This is particularly the case as Wi-Fi becomes ever more prevalent on board, creating opportunities for enhanced customer engagement even whilst the plane is in the air. So if a passenger comments about an experience good or bad on Facebook or Twitter, theres an opportunity to respond to it there and then. Expect to see more of this sort of activity in your social feeds in 2013. That aside, the digital challenges the sector faces, as with the need to go social in the first place, will be familiar to most management teams, whatever their sector. In terms of resourcing, there is a perennial question of whether to set up dedicated social media teams or to embed these skills across different parts of the organisation. Theres also the challenge of responding to an ever-expanding range of digital outlets, apps and devices. Engagement via channels such as Facebook, Twitter and YouTube may now be fairly mainstream, but to what extent should you also have a presence on new platforms like Instagram, Google Plus

Plans to Increase budget for social media next year

Likely to increase but amount unknown Likely to increase budget by less than 25% Likely to increase budget by 25 %- 50% no increase

13.8% 6.9% 6.9% 6.9% 3.4% 62.1%

Likely to decrease unsure

Case in point

or Pinterest? Such engagement may well gain you kudos with the digerati, but their numbers are small compared with the big three networks. Whatever your digital battleground, many of your staff will already be active on these networks in their own right. So having a social media policy for your workforce may well be essential. After all, your employees can play a great role in developing your brand and providing it with a human face. But they can also potentially damage it. Witness the speed with which Tatiana Kozlenko, a flight attendant with Russian airline Aeroflot, was sacked after a photo she posted of a staff member giving passengers the finger went viral. This was not the kind of image the airline wished to project. And finally, underpinning all of this, is the question of ROI. Does all of this digital

activity make a difference, or are consumers still driven by the bottom line, with brand loyalty all too quickly abandoned in the face of a good deal? ROI may not translate to driving traditional income streams (yet), but digital reach and engagement may prevent them from haemorrhaging. Arguably the best way to see digital channels is not as isolated services, but part of the wider business plan. The CEO of the South African carrier Mango Airlines recently attributed 50% of its revenue growth to social media, with its Bucket List campaign in which consumers submitted their travel wishlists being harnessed to add value to its new tagline, Why not today?. Its a good question. Whichever way you look at it, the use of social media and digital technologies by airlines looks like it is really starting to take off