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Low-Fare & Regional Airlines
Vol 37 No 1 February/March 2020
www.laranews.net
Mitsubishi’s SpaceJet
To infinity and beyond
Jazeera widens its focus
Kuwait’s low-fare
success story
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IN THIS ISSUE
3
COVER 20 KLM UK ENGINEERING
Long-range view: Jazeera Airlines CEO Rohit Making MRO the cool choice
Ramachandran talks to LARA about the airline’s The Norwich Airport-based MRO, KLM UK Engineering, also runs an onsite technical training college
plans to connect Kuwait across the Middle East that is delivering the next generation of EASA-standard aircraft engineers and technicians through an
and beyond. innovative training approach. Glenn Sands went back to school.
NEWS & FEATURES
4 COMMENT 30 REGIONAL FOCUS 51 SUPPLY CHAIN, PARTS AND LOGISTICS
Thinking positive and planning ahead… Where the action is – Asia Maintaining strong links
Boeing takes a patient approach to the Asia is a region that offers huge potential Waiting for a spare part costs money.
ongoing MAX grounding. for those airlines or start-ups prepared Airlines, MRO providers and logistics
to take a gamble. But is it a land of companies are working together to
6 NEWS opportunity or threat? prevent this from happening.
All the latest news and developments in
the low-fare and regional airline industry. 34 SPACEJET 58 GROUND HANDLING OPERATIONS
Two Steps Forward... The passenger plane pit-stop
12 NEWS ANALYSIS – FLYBE David Willis reports on the complex Michael Doran reports on the efforts being
Glenn Sands takes a closer look at the development and changing requirements made to ensure turnaround times are kept
extraordinary events surrounding Flybe’s impacting Japan’s first steps into the to a minimum.
rescue by the UK government. competitive world of the regional jet market.
63 FIVE QUESTIONS TO…
14 JAZEERA AIRWAYS … Gary Vickers, CEO at Aerogility
Blue skies ahead
Jazeera Airways has been rapidly 64 AERO-TECH TRENDS
expanding its network over the course of Anomalous; Boxever; Collins Aerospace
the past year, Kimberley Young reports. Systems; HiETA Technologies; Meggitt;
Norwegian Air Shuttle.
26 CRANFIELD UNIVERSITY & PROJECT
FRESSON 66 NEW APPOINTMENTS & EVENTS DIARY
Seventy years creating cutting-edge 40 SEATING AirAsia; Association of Asia Pacific Airlines;
solutions Sitting tight Burrana; CDB Aviation; FLYdocs; Infare;
Cranfield University and its commercial Kimberley Young looks at the innovations Norwegian Air Shuttle; Pattonair; Regional
arm, Cranfield Aerospace Solutions, is enhancing comfort in high-density seating. Airline Association; Spirit Airlines.
quietly leading the way forward in
aircraft development. 46 FLIGHT PLANNING OPS IN THE NEXT ISSUE
Smooth Running l Training Special
Michael Doran examines the positive l Data & AI Airline Solutions
impact of three different flight planning l Aircraft & Engine Leasing
systems. l IT in MRO
laranews.net February/March 2020 LARA
4
COMMENT
Thinking positive and planning ahead…
There’s nothing like being optimistic and after the year Boeing had,
the only way can be up. It has been telling customers and suppliers
EDITORIAL
that its 737 MAX will not start flying regular operations again until
tel: +44 1252 545993 mid-2020, based on the aircraft manufacturer’s “experience with the
Editor: Glenn Sands certification process”.
glenn@hmgaerospace.com
Boeing also stated this estimate is subject to ongoing attempts to
Senior Reporter: Kimberley Young address “known schedule risks” and warned further developments
kimberley@hmgaerospace.com
might arise that could affect the re-certification process.
Asia-Pacific Correspondent: Emma Kelly
emmajkelly@bigpond.com
“It also accounts for the rigorous scrutiny that regulatory authorities
tel: +61 8 9291 9089 are rightly applying at every step of their review of the 737 MAX’s flight control system and
Contributors: Bernie Baldwin, Michael Doran, John Persinos
the Joint Operations Evaluation Board process determines pilot training requirements,” the
and David Willis. company said in a statement on Tuesday.
ADVERTISING SALES & MARKETING
“As we have emphasised, the FAA and other global regulators will determine when the
tel: +44 1252 545993 737 MAX returns to service. However, in order to help our customers and suppliers plan their
Sales Manager: Toby Walton operations, we periodically provide them with our best estimate of when regulators will begin
toby@hmgaerospace.com
to authorise the ungrounding of the 737 MAX.
Media Sales Executive: Richard Prescott “Returning the MAX safely to service is our number one priority, and we are confident that
richard@hmgaerospace.com
will happen. We acknowledge and regret continued difficulties that the grounding of the 737
Marketing and Communications Specialist: Emma Walker
emma@hmgaerospace.com
MAX has presented to our customers, our regulators, our suppliers and the flying public.”
The three major US operators of the MAX – American, United and Southwest Airlines – have
PRODUCTION & DESIGN
tel: +44 1252 545993
changed their schedules a number of times to reflect the return-to-service date being no earlier
Production and Design Editor: Steve Lodewyke than July.
steve@hmgaerospace.com While the commercial aviation world waits patiently for regular MAX services to resume,
Graphic Designer: Paul Firth what has to be remembered is the massive logistical and supplier back-up that is currently on
paul@hmgaerospace.com hold. Boeing’s MAX aircraft are racked and stacked waiting to be delivered to their customers
CIRCULATION who are now reducing or cancelling future orders. There are 400 completed aircraft stored in
Subscription Enquiries: Washington State and Texas, all of which need to be paid for, because airline customers pay the
subscriptions@hmgaerospace.com
tel: +44 1252 545993 bulk of what’s owed upon delivery. This situation has seen Boeing temporarily halt production
MANAGEMENT
of the type.
publishing@hmgaerospace.com Of course, the type will get back into widespread service but Boeing and operators are
Managing Director: Mark Howells ignoring the offers by MROs and others to continue to teach, train and keep staff current on the
Director: Becky Howells
MAX. It could be a very, very busy summer for Boeing and MAX operators once again.
LARA is published six times per year – in February/March, April/May,
June/July, August/September, October/November and December/
January – by HMG Aerospace Ltd. Distribution of LARA is carefully
controlled for industry-related individuals.
Glenn Sands – Editor
Non-qualifiers can subscribe annually for £100.
Articles and information contained in this publication are the
copyright of HMG Aerospace Ltd and may not be reproduced in any
form without the written permission of the publishers.
Member of: Strategic partner:
© HMG Aerospace Ltd 2020 ISSN 1753-0598
HMG Aerospace Ltd
The Hub, Fowler Avenue, celebrating
Farnborough Business Park,
Farnborough, GU14 7JF years
United Kingdom
Tel: +44 1252 545993
www.hmgaerospace.com
LARA February/March 2020 @LARA_Editor
6
NEWS
LOT parent group
acquires Condor
The Polish Aviation Group (PGL), owner The purchase of Condor will mean the employees, customers and partners
of LOT Polish Airlines, has purchased carrier can repay the bridging loan it was stability and a great perspective. We want
German carrier Condor. Previously, granted by the German government last year. to further develop the traditional Condor
owned by the Thomas Cook Group, The transaction for purchasing Condor is brand in Germany and introduce it to
Condor survived the collapse of the expected to be completed in April, subject to other European markets.”
travel group in September 2019. all the necessary approvals Condor’s CEO, Ralf Teckentrup, said
When Thomas Cook collapsed, the German PGL’s CEO, Rafał Milczarski, said that that the new ownership will “secure the
subsidiary was granted a loan by the German Condor is a perfect match for the Polish future of our business” and suggested
government, allowing the carrier to continue Aviation Group’s strategy. Additionally, it that, “together we will serve twice as
operating in the interim period. The news of seems that Condor will keep its branding. He many passengers, thus forming one of the
the acquisition by PGL was announced in commented: “The purchase secures the largest aviation groups and the leading
Frankfurt on 24 January. future of Condor and thus offers its leisure airline group in Europe.”
Lübeck Air will connect north Germany
Lübeck Airport in north Germany “We are creating an offer that many
has established a new regional people don’t even know anymore,” Chief
airline which will operate scheduled Pilot Tobias Oberschäfer commented.
services to Munich and Stuttgart Each ticket includes one piece of baggage
from its launch in June 2020. and hand luggage, a small meal onboard and
The airport last saw commercial a seat pitch of 89cm.
services in 2016 following a filing “As the Lübeck Air plane surprises with
for insolvency in 2014. After gaining seating for only 60 passengers – all of them
a new operator, the airport is now window or aisle seats,” Oberschäfer
in the process of modernising its continued.
terminal and plans to resume The airline’s website describes it as a
scheduled and charter traffic. “private aviation company… operated in
The new carrier Lübeck Air will collaboration with Air Alsie of Denmark and
provide scheduled, nonstop closely affiliated with Lübeck Airport. We are
services for the city operated with looking forward to linking the Baltic Sea
an ATR 72-500 turboprop, which coast, home to beautiful resorts and Lübeck,
the company suggests: “has proven a UNESCO World Heritage Site, with the south
itself for regional traffic”. of Germany from spring 2020.”
LARA February/March 2020 @news_LARA
7
NEWS
Airbus establishes Skytra for revenue risk management
Airbus has launched a new venture called long-term and make the investments
Skytra which aims to support aviation’s risk necessary to sustainable growth.
management of its revenues by developing Drawing on research of how other
highly regulated financial instruments and industries approach risk management, Skytra
infrastructure. is developing indices and platforms to ensure
Discussing Skytra at the Airfinance Journal that air travel industry has its own class of
Dublin event in January, the team behind derivatives to manage ticket price volatility.
Skytra saw that the industry faces volatility in “Airbus recognises that the air travel
costs and revenues. This includes changes in industry could see substantial value in being
airline ticket prices due to a variety of external able to control its revenue risk,” Airbus Chief
factors (including politics or economic Commercial Officer, Christian Scherer, said.
uncertainty) as well as last minute revenues; “Financial predictability is beneficial to the
with the vast majority of airline tickets sold in whole value chain – from passengers to
the last five weeks before take-off. airlines, airports, lessors and aircraft
Skytra aims to address this need through manufacturers – enabling the industry to
the development of a family of global and invest in reducing our carbon footprint.”
regional indices which track the daily changes In the year ahead, Skytra is seeking
in the price of air travel in each geographic Scherer: “Financial predictability is beneficial to the approval from the UK’s Financial Conduct
whole value chain.”
market. The indices will be used to price Authority (FCA) to become a regulated
standardised futures and options contracts to (such as fuel prices) – the team found there Benchmark Administrator for its air travel
be offered on a regulated derivatives trading are no existing instruments enabling them to indices with the aim of making these
venue that Skytra is developing. manage air travel revenue volatility available in late 2020. It is also applying to the
While airlines are currently able to hedge effectively. This makes airlines financially FCA for a licence to operate a Multilateral
their cost base using derivative contracts vulnerable and affects the ability to plan Trading Facility (MTF).
‘Green Financed’ ATR 72-600 lands at BRA
ATR delivered the first ever ‘Green Financed’ existing fleet of regional jets with ATR 72-600 commercial aviation and lead the way in terms
aircraft to Swedish regional airline Braathens aircraft we will emit 7,500 fewer tonnes of CO2 of innovation and sustainable regional
Regional Airlines, leased from Avation and per aircraft, per year.” aviation,” also suggesting “it is only natural that
financed by Deutsche Bank. The project to replace ageing regional jets the first Green Financing deal for a commercial
The aircraft is part of a new order for five with new ATR 72-600 aircraft was deemed by aircraft would involve an ATR and BRA.”
72-600s and on completion of the order in Vigeo Eiris, an agency providing Environmental, “As a lessor, it is essential for us to progress
early 2020, the airline will operate an entirely Social and Governance (ESG) ratings, as our fleet into new technology low carbon
ATR fleet, comprised of 15 ATR 72-600 aircraft. aligned with the Green Loan Principles created emission aircraft such as the ATR 72-600 which
BRA CEO Geir Stormorken said the ATR is an by the Loan Market Association in 2018. maintain their value over a long period,” added
“essential” part of the airline’s environmental Stefano Bortoli, CEO of ATR, commented: Jeff Chatfield, Executive Chairman of Avation,
strategy, adding: “By replacing parts of our “We are proud to launch Green Financing in the Singapore-based leasing company.
laranews.net February/March 2020 LARA
8
NEWS – AIRFINANCE JOURNAL DUBLIN 2020
Airline CFOs: Consolidation must
be allowed to happen
The Airfinance Journal Dublin event (21–23
January) brought together industry executives
from across the leasing, aviation finance and
airline sectors to look at some of the
anticipated hurdles ahead and reflect on how
the industry has changed – particularly looking
back over the past four decades as the
publication celebrated its 40-year anniversary.
With the ongoing cessation of Boeing 737
MAX services, discussions on the impact of the
grounding and when the aircraft might be back
in the air were high on the agenda, along with
the trending topic of sustainability. CFOs in discussion: (From far left) Steve Gunning, Chief Financial Officer, British Airways; Raffael Quintas Alves,
Chief Financial Officer, TAP Air Portugal; Iain Wetherall, Chief Financial Officer, Wizz Air; Torbjorn Wist, Chief
LET THE MARKET DECIDE Financial Officer, SAS Airlines; Steven Udvar-Hazy, Executive Chairman, Air Lease Corporation (moderating).
Following a year that saw over 20 carriers
cease operations, with Flybmi, WOW Air and “Quite frankly, one should do the merciful the ones making any significant profit and
Thomas Cook all closing their check-in desks thing and let them go out of business and let within that the top five or six are making the
for the final time, airline CFOs highlighted that others come in and take it up,” Wist continued. vast majority of the profit.”
consolidation in the European market “needs Wizz Air’s CFO Iain Wetherall agreed, “Things that have held that back are that
to happen”. pointing out that there are double the number we’ve had a long positive cycle – in 2016 the
Responding to an audience question on of airlines in Europe than there are in the US, fuel price reduction breathed life into airlines
how the CFOs see consolidation in the year with “90% of the profits from a select few”. that maybe would have gone by the board,
ahead, Torbjorn Wist, CFO for SAS Airlines, Discussing his own Hungarian airline’s role and artificial life isn’t the right way forward.”
said it is needed: “So far it is happening within this environment, he explained: “We’re This comes as IAG’s outgoing CEO Willie
through survival of the fittest, through airlines in a market that’s evolving, and we like slow Walsh condemned the UK government’s
going out of business and others going to pick dying dinosaurs… The further East you look rescue deal of troubled regional airline, Flybe,
up the pieces.” this issue is going to get more pronounced.” announced in mid-January. Along with other
He argued that capacity in Europe is “The industry is ripe for consolidation, but it airline executives including Ryanair’s Michael
extremely fragmented and adds that this isn’t needs to be allowed to happen,” Steve O’Leary, Walsh criticised the move, calling it a
helped by “artificial life support for state Gunning, CFO of IAG, added to the debate. “If “misuse of public funds”. Find out more about
airlines that don’t have the right to life”. you look at the 100-odd airlines, the top 12 are Flybe’s recent rescue agreement (pg 12).
Industry view
John Plueger, Chief Executive Officer and President, Air Lease Corporation
“The advent of LCC and ULCC… has been the single biggest game changer I believe that has led to the growth of traffic,
aviation and the implementation of new aircraft types. The ability to travel to secondary, tertiary city pairs at cheap airfares
has been a huge game changer, and I would say it is the single reason why commercial air transportation has become the world’s
form of mass transportation today for anything over 500nm.”
LARA February/March 2020 LARA magazine
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10
NEWS
Social Media
@news_LARA
@LARA_editor
Boeing/Embraer strategic partnership: “I think Embraer has done a terrific job, but it has never competed with Airbus.”
Navigating new skies
With Boeing’s issues over the MAX and a good you are as an independent company, I
recent change of leadership, speakers at believe you are handicapped if you are going
Airfinance Journal Dublin were asked to to be marketing aircraft in that same
comment on whether they thought the space. I think Embraer has done a terrific
manufacturer might still want to go ahead job, but it has never competed with Airbus.”
with its strategic partnership with Embraer, Taking a slightly different approach,
first announced in summer 2018. meanwhile, Domnhal Slattery, CEO of aircraft
“We’ve never had a time before like we lessor Avolon, commented that he thought
have now, where one of the two behemoths – the deal would be “imperative” for
Boeing and Airbus – now owning the former Boeing “because we’re seeing the power
C-Series (A220). That is a huge game of the Airbus/Bombardier C-Series link-up.
changer,” said Air Lease Corporation’s John It is transformational and has been a game
Plueger, CEO and President. “No matter how changer for the aircraft.”
Magnetic MRO launches
leasing arm
Magnetic MRO and Crestline Investments have
launched a joint venture company, Magnetic
Leasing, to focus on long- and short-term
aviation asset management and leasing.
The JV will specialise in mid-life Airbus A320
Family and Boeing 737 CL/NG aircraft, along
with engines and landing gear systems for
narrowbody aircraft.
By the end of 2020, Magnetic Leasing
expects to have a portfolio with $100 million
Vella: Diversification strategy.
under its management, and in five years the
company expects to manage at least 30 asset management activities, and teaming
narrowbody aircraft and 20 engines. with Crestline Investments as our partners in
The Chief Operations Officer at Magnetic this endeavour, created Magnetic Leasing.”
Leasing, Alex Vella, commented: “As 2020 was The company has already signed a deal
approaching, there was a strategic decision with Ryanair for a landing gear lease through
made to continue diversifying our business in an agreement covering an eight-month lease
order to ensure further growth in the next period during which the landing gear will be
decade. Thus, we decided that, among other used on different aircraft based on the
business objectives, we need to expand our airline’s demand.
LARA February/March 2020 @news_LARATRANSFORM YOUR REALITY
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© 2020 TRU Simulation + Training Inc. All Rights Reserved.Shedding light on Flybe deal
Non-denial denials and a hurriedly The year was barely a few weeks old when on possible collapse, replied to media reporters in
worked-out “time-to-pay” 12 January a tweet appeared on Flybe’s a similar tone to the officially released
account, stating: “Flybe continues to provide a statement, but added that his leadership team
arrangement: Glenn Sands takes a
great service and connectivity for our customers “was very focused on continuing to turn Flybe,
closer look at the extraordinary while ensuring they continue to travel as soon to be Virgin Connect, around”. He asked
events surrounding Flybe’s rescue planned. We don’t comment on speculation.” employees not to be distracted by the
by the UK government. It was clear that, despite the airline’s rather “unhelpful and unproductive” speculation and
non-committal statement, the speculation that “to continue to work and support each other
had surfaced just hours earlier across social as a team to deliver what we know we can do”.
I
t was a chaotic 72 hours that followed the media, that the UK’s largest regional carrier was Flybe was bought out in February 2019 by a
Sunday night news announcement that in financial trouble, had substance. It emerged consortium called Connect Airways for £2.8
Flybe – the UK’s largest regional carrier – that the airline had been in secret talks with two million led by Virgin Atlantic. Also in the
was on the brink of collapse. As the media government departments – the Department of consortium were the Stobart Group and New
were quick to lead with the story on Monday Transport and the Department for Business, York hedge fund Cyrus Capital Partners. Cyrus
morning, it emerged discussions with the UK Energy and Industrial Strategy – to determine Capital Partners owns a 40% share of Connect
government were already taking place. By whether the UK government could provide Airways, while the other partners – Virgin and
Wednesday, a deal had been reached. It was emergency financing to keep the airline afloat. Stobart – each own 30%. The airline is due to
fast and furious on social media, but then In the early hours of the crisis, Flybe’s CEO, launch as Virgin Connect later this year. The
came the fallout. Mark Anderson, when asked about the new owners have committed to injecting funds
“Prior to the acquisition of Flybe by the
“It’s in breach of competition rules, it’s in
consortium which includes Virgin/Delta,
breach of state-aid rules, which is why the
Flybe argued for taxpayers to fund its
government are covering up the deal. They
operations by subsidising regional routes.
won’t publish it... The government can’t keep
Virgin/Delta now want the taxpayer to pick up the
lending a non-viable airline £100m every three months to
tab for their mismanagement of the airline. This is a blatant
keep non-essential services available.
misuse of public funds.”
“If Flybe folds, as it inevitably will, in exactly the same way
Willie Walsh, the outgoing Chief Executive of IAG, wrote to
as we did after Thomas Cook and after Monarch, Ryanair,
Transport Secretary Grant Shapps, criticising the
easyJet, BA, Norwegian and others will step in... There will
government’s involvement in its rescue of Flybe. IAG has
be no loss of regional services.”
now made a state-aid complaint to the European
Michael O’Leary, Chief Executive of Ryanair
Commission to overturn the decision.NEWS ANALYSIS – FLYBE
13
in the turnaround and to build the with the support received from the
40-year-old airline into “Europe’s government and the positive outcome for our
most loved and successful regional people, our customers and the UK.”
airline,” under its new brand name. It has proved to be a chaotic 72 hours
The airline was also expected to serve within the UK’s regional airline market. From
as a feeder for Virgin Atlantic’s long- the initial denials, to confidential discussions
haul services, particularly at that had been going on before the news broke,
Manchester Airport and London Heathrow, even it demonstrated just how fragile the UK’s
though the regional airline had just a handful of domestic regional airline market is, and
slots at London’s main airport. brought to everyone’s attention the UK’s APD
Within a few hours of the first tweet, official government announced that they had reached system; an area of taxation that is in dire need
confirmation by Flybe that it was seeking UK an agreement on a deal to keep Europe’s of reform.
government assistance emerged. Unions largest regional carrier operating. Although Flybe’s financial difficulties can be linked to
reacted with anger and disbelief that, yet specific details are still to emerge over the the APD. The Chief Executive of Airlines UK, a
another UK airline was on the brink of collapse terms agreed, what has been revealed is a trade group, asserted that Brexit creates the
and talks had been in progress without any of request by the carrier’s shareholders to receive possibility to shelve or lower the passenger tax
its union members being contacted. an extended period of time to pay the airline on domestic flights. Under EU rules, member
“According to reports, the airline could have passenger duty (APD) on its domestic services states may not differentiate between domestic
collapsed over the weekend, which would for three years – a total that is estimated to be flights and flights between EU countries
have been devastating. This is an appalling around £100 million. because it considers the bloc one single airline
state of affairs and we demand that the The government has since stated that it’s to market. By applying a lower rate for domestic
owners of Flybe and the government launch a review of the amount of APD levied on flights, it amounts to illegal state aid,
departments involved stop hiding and talk to domestic UK routes and of the country’s according to EU regulations.
us about Flybe,” said Brian Strutton, the regional connectivity needs. “The reviews we When the UK leaves the EU, there’s the
General Secretary of the pilots’ union BALPA are announcing today will help level up our possibility of cutting or completely removing
on 13 January. The GMB Union released a economy. They will ensure the regional the APD on domestic travel. The UK levies £13
similar statement and warned that up to 2,000 connections not only continue but flourish in per passenger departing from a UK airport for
direct jobs and a further 1,400 jobs in the the years to come,” said the UK Chancellor a flight in the EU. In the case of Flybe, this can
supply chain were at risk. “Our economy is Sajid Javid. be £26 in tax for a flight that has an average
tanking. The last thing we need is an airline to On Twitter, Transport Secretary Grant fare of £52. For a regional airline it’s simply not
go under – especially one which provides a Shapps said: “…delighted we have been able sustainable, alongside the increasing other
vital public service in some parts of the to work closely with Flybe to ensure Europe’s costs carriers are having to deal with.
country,” the union’s national officer Nadine largest regional airline is able to continue However, although the 31 January ‘Brexit’
Houghton said: “If the UK government is connecting communities across Britain.” leave deadline is set, a transition period
serious about infrastructure investment in the Chairman of the consortium that owns Flybe, continues until 31 December 2020, and much
regions, it must step in and protect what Lucien Farrell, said the three shareholders had of the current EU legislation will continue until
already exists.” “committed to keeping Flybe flying with then, so tying the UK government’s hands for
The UK government did step in. On the additional funding alongside government removing or at least cutting the domestic APD
evening of 14 January, Flybe and the UK initiatives,” while Flybe stated it was “delighted in the immediate future. n
“Her Majesty’s Government was notified
about the difficulties of Flybe on 11 January,
and since then we have worked intensively
“This is a standard time-to-pay arrangement with HMRC [UK
with the company to understand their
tax authority] that any business in financial difficulties may
financial position and explore options. In the
use… This agreement will only last a matter of months
light of these discussions the management and shareholders
before all taxes and duties are paid in full.”
on 14 January took action to set Flybe on a recovery path.”
A Flybe spokesperson speaking after the deal was agreed.
Grant Shapps, Secretary of State for Transport14
JAZEERA AIRWAYS
Blue skies ahead
Jazeera Airways has been rapidly expanding its network over the course of “If you look back at our financial
performance, you will notice that every year
the past year, including the launch of the first new service between Kuwait
going back perhaps 10 years, we have
and London in 55 years, but the airline isn’t stopping there. Kimberley Young returned in excess of KWD7.5/8 million
speaks to CEO Rohit Ramachandran about the airline’s plans to connect (roughly $25 million) in dividends to our
shareholders,” he says. “That’s not a bad
Kuwait across the Middle East and abroad.
return for a small airline, that until recently
had just seven aircraft in the fleet.”
L
aunched in 2004 as the first privately operation, but simultaneously ensuring a And for an airline that says it doesn’t judge
owned airline in the Middle East, good return for shareholders.” success by destinations or fleet size, Jazeera
Jazeera Airways has held its own in a Indeed, the Middle East is a competitive has been going through a period of rapid
challenging aviation environment. Now, landscape and a challenging area for growth, going from seven aircraft to
from its HQ at Kuwait International Airport, airlines to thrive. IATA’s most recent 13 by the end of 2019 (made up of nine A320s
the low-cost carrier is embarking on a predictions for 2020 painted a grim picture and four A320neos). Ramachandran explains:
pathway to further growth. for airlines in the Middle East after weak “We were at seven aircraft for many years, up
“Historically, I think the problem has economic growth in 2019. until 18 months ago when we decided to
been that many airlines are driven by ego. Some rebound is expected for this year, focus on expanding the business.”
We, on the other hand, run it as a business,” but IATA suggested “announced schedules
Jazeera Airways’ CEO Rohit Ramachandran point to a substantial slowdown in capacity SNAPPING UP OPPORTUNITIES
tells LARA. “We look at things pragmatically growth for 2020”. The airline became the launch operator for
and we go after commercial opportunities Despite IATA’s downbeat forecast, Jazeera’s the A320neo in the Middle East when it took
wherever we find them. CEO seems confident in his airline’s position. delivery of its first aircraft of the type in
“The Middle East and the Gulf in For the nine months ended 30 September 2018. The airline now has a quartet of the
particular is a highly competitive landscape, 2019, revenue was over KWD82 million A320neo aircraft, with the most recent
and often in the news are airlines well- (approximately US$270 million), up from delivered in December.
known for placing large aircraft orders and KWD63 million in the same period in 2018. A further four deliveries of A320neos have
a super luxury experience,” he says. “We Operating profit measured over KWD22 been confirmed for 2020, with a possible
judge our success not necessarily by fleet million for the period in 2019 (approximately fifth also under discussions with lessors,
size or number of destinations. We focus on $72 million), up from KWD13 million for the which would take the fleet up to between
operational excellence and running a good same period in the previous year. 17 or 18 aircraft this year.
LARA February/March 2020 @news_LARALondon Gatwick
Osh, Kyrgyzstan
Jazeera’s going places:
The Kuwaiti low-cost carrier has added a
number of new routes since November with
new flights to Bangladesh starting soon.
Kuwait International Airport
Key
Existing destinations Kathmandu, Nepal
Launched since Nov 2019 Dammam, Karachi, Pakistan
Saudi Arabia
Al Ain, Abu Dhabi
The airline is running on an ‘asset-light’
model, choosing to lease its aircraft.
Ramachandran says: “Rather than place big
aircraft orders – which appears to be the
norm with airlines in this part of the world,
we are quite opportunistic. We go after
distressed aircraft units which are being
held by lessors for some reason or the other, says. “But we believe that there should not – where the airline is providing
such as if their customer has failed to take be any ambiguity in the positioning of the the only scheduled service.
delivery of those aircraft. Then we come in product, and we should be disciplined in Commenting on the launch of flights to
and take delivery – helping the lessor and focusing on our low-cost DNA.” Al Ain, Ali Hassan Al Shaiba, Acting
getting excellent terms for that lease.” As well as removing complexity and costs Executive Director of Tourism and
The airline has also shaken-up its fare from providing this differentiated service, Marketing at Abu Dhabi’s Department of
options for 2020, releasing three new reverting to an all-economy cabin also Culture and Tourism, said the new route
categories to offer passengers more choice means that those six middle seats that were “marks a significant milestone in tourism
for the way they travel. previously blocked-out now come back into between Kuwait and Abu Dhabi,” adding:
The options include Economy Class Light, the inventory, increasing the capacity of the “Our strong cultural ties and proximity
which allows a carry-on and a small bag; aircraft, the CEO explains: “Which is very make Kuwait a valuable tourism source for
Economy Class Value which offers an important as we move towards higher and Abu Dhabi.”
additional 20 kg of check-in baggage higher seat factors.”
allowance; and Economy Class Extra which SMALL IS BEAUTIFUL
offers allows 30 kg in check-in luggage, SERVING NICHE MARKETS “I find that the biggest success doesn’t
priority check-in and a choice of Preferred Along with the growth of the fleet, the necessarily come from operating the busy
Seats. The airline also launched a Priority airline has appeared to be on a route- international gateways – for us some of our
Service option which can be pre-booked for launching spree, introducing nine new most profitable routes are the smaller cities
passengers wanting a faster travel experience. routes in just the past three months, which are closer to our customers,”
The airline previously offered Premium reaching up to 36 destinations – some of Ramachandran reflects.
Economy and Business class on its A320neo which are rather niche. The Kuwait to Osh service for example, is
aircraft, but with these new fare categories the In just November and December of last the first direct route between the Middle
airline has also opted for an all-economy class year, Jazeera Airways launched a service to East and Osh, which the airline suggested
configuration (except on its Cairo flights). the southern Kyrgyzstan city of Osh, provides passengers “access to connecting
“Jazeera has always had Economy class followed by flights to Kathmandu in Nepal, flights between the second largest city in
seats throughout the aircraft, though the first Karachi in Pakistan and Dammam in the Kyrgyzstan and its majority Muslim
three rows offered a larger seat pitch and Kingdom of Saudi Arabia, and operations population and other cities in the region,
blocked-off the middle seat,” Ramachandran to a small airport in Abu Dhabi called Al Ain notably Jeddah and Medina.” ❱❱❱
laranews.net February/March 2020 LARA16
“Whilst the jury is still out on the viability of long-
haul low-cost, the real question is between
widebody low-cost and narrowbody low-cost.”
Rohit Ramachandran, CEO, Jazeera Airways
Davenport MBE, more Kuwaitis are studying about a six-seat payload restriction,”
at British universities than ever before, Ramachandran explains. “Rather than just
more than 6,000. Britain is block those seats off at the rear of the
also a popular travel aircraft to be in compliance with the
destination for payload restriction, we decided to monetise
residents of Kuwait, that problem.”
welcoming over With this foray into longer-haul
150,000 Kuwaitis destinations, is the airline considering the
last year. possibilities for flying further afield and
Ramachandran what does Ramachandran make of the
explains that the notoriously risky long-haul low-cost model?
route presented a “Whilst the jury is still out on the viability
“very strong of long-haul low-cost, the real question is
commercial between widebody low-cost and
proposition” for narrowbody low-cost,” Ramachandran
the airline, with the argues. “I think it is clear that the results of
large numbers of operating widebody ‘low-cost’ aircraft are
Kuwaitis living or still ambiguous or marginal at best, whereas
studying in London, as the narrowbody operation is well
well as the large South understood by good low-cost operators.
“Who would have thought that Osh and Asian diaspora in the UK and the Muslim With technology moving forward and the
Kuwait could generate enough traffic to population. He says: “I think the Muslim manufacturers extending the range of
sustain a scheduled jet service,” population in the UK have been looking for existing narrowbody aircraft, more
Ramachandran remarks, “The route is low-cost options to be able to travel to destinations come within range from our
already highly profitable.” Jeddah and Mecca to perform the Umrah home base of Kuwait – London being a
and Hajj pilgrimages and for the first time prime example.
GOING LONG-HAUL with our connections to Jeddah they have “We are in discussions with Airbus about
It is not all niche markets, however, as the a low-cost alternative to travel from the XLR and it certainly increases the radius
airline celebrated a new milestone in London to Jeddah.” of the circle around which we can fly,” he
October 2019, becoming the first low-cost Exclusive to the London service, Jazeera continues. “I think there is still a while to go
carrier in the Middle East to fly to the United introduced a new Premium Economy class, before we get to that stage because there
Kingdom, also marking the first new service offering passengers a 40-kilogram baggage are many low-hanging fruits within the
to the UK from Kuwait in 55 years. allowance, 31-inch seat pitch, a middle seat range of the existing aircraft type we have.
The route connects Kuwait International kept free, as well as dedicated check-in From 2023 onwards it is an interesting
Airport with London Gatwick Airport counters, priority boarding and a option to augment our fleet with.”
utilising the A320neo. “The A320neo in complimentary in-flight hot meal.
practice has been generating a fuel saving of While this upgraded option will no doubt CLOSER TO HOME
18% which we are very pleased to see,” says be appreciated by those passengers who In the meantime, the airline has ambitious
Ramachandran, “so it makes quite a lot of prefer a little more space at a budget- growth plans for the year ahead that are
sense for us to exploit the A320neo to more friendly price, the launch of Premium closer to home, making the most of the
or less its maximum range, through the Economy on the London route came from range of its existing fleet. This strategy
Kuwait – Gatwick service.” an operational hurdle. focuses on three main areas: the first being
According to Her Majesty’s Ambassador to “We saw that, at least based on the growth in South Asia, including India,
the State of Kuwait, His Excellency Michael planning stages of the flight, we would have Pakistan and Bangladesh.
LARA February/March 2020 LARA magazine17
JAZEERA AIRWAYS
“In India and Pakistan, we are currently Finally, the airline plans to continue
limited by traffic rights, so we are in expanding within the region, and
discussions with our own government in particularly in Saudi Arabia.
Kuwait, as well as the governments in “I believe Saudi Arabia has great
India and Pakistan, to enhance and potential,” Ramachandran says.
expand on the air services agreements,” “Particularly in recent weeks and months
Ramachandran says. Meanwhile, the with all the positive news coming out of the
airline will be launching services into Kingdom with respect to business
Dhaka and Chittagong in Bangladesh friendliness and tourism. Last month we
in February. launched services to Dammam and I expect
The second focus is the Commonwealth at least another four or five destinations in
of Independent States (CIS) where the Saudi Arabia in the next year.”
airline already flies into Baku, Azerbaijan; The link to Dammam is the airline’s fifth
Tbilisi, Georgia; and Osh in Kyrgyzstan. destination in the Kingdom, following Riyadh,
The London Look: Launched in competition with
Within the next year the airline plans to Jeddah, Medina and Taif. Flights to the
national flag carriers Kuwait Airways and BA, Jazeera
launch a service to Armenia, and is also Airways’ 6-hour flight to London’s Gatwick Airport is
mountain city of Abha started in January.
looking at Tajikistan and Uzbekistan, and the longest journey in the airline’s schedule and Alongside the business opportunities for
possibly Kazakhstan next year. features a Premium Economy cabin within its A320neo. focusing on this region, it is also a key
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laranews.net February/March 2020 LARA18
JAZEERA AIRWAYS
market for Kuwaitis, with the number of almost maxxed out of the terminal itself.”
people crossing the Kuwait-Saudi border by To accommodate this growth the next phase
road equivalent to the capacity of the of expansion at the terminal is underway
Kuwait International Airport, Ramachandran and set to be ready for the summer season.
says, which is about 13.5 million. Another, “more aggressive” expansion will
Outside of fleet additions and new routes, then follow, expected to be ready in two
the airline is also planning to expand at its years’ time and growing areas across the
home-base at Kuwait International Airport terminal, from gates to check-in counters
where it operates its own terminal – T5.
“To the best of my knowledge, we are the
and parking.
It appears 2020 is going to be another Free W-IFE puts
Jazeera ‘ahead
only airline in the world that has designed, packed year for the airline with passenger
funded, built and operates its own figures expected to continue rising.
terminal,” Ramachandran says. The terminal Reporting passenger figures for the third
opened in May 2018 featuring self-service
kiosks, duty free, dining outlets and
quarter of 2019, the airline recorded an
increase of 14.3% over the same period in
of the curve’
Discussions around in-flight
complimentary Wi-Fi at each gate. the previous year, while passenger numbers
entertainment and connectivity in low-
This operation carries two benefits, the for the first nine months of 2019 grew 18.1%
cost cabins can sometimes seem to
airline suggests; operating the terminal over the period in 2018, reaching 1.8 million.
split the room. With some arguing these
gives Jazeera Airways a better end-to-end Suggesting what we might see in the year
services are necessary to the passenger
control of the passenger experience, and the ahead, Ramachandran tells LARA: “I would
experience, while others argue that the
profits add to the airline’s bottom line. Other be very surprised if we don’t far exceed
costs of providing IFEC outweigh the
airlines have taken note. 3 million passengers this year.”
benefits – or else, if passengers want
“I have received several requests from After the rapid growth of the airline over
the service – they need to pay for it.
other like-minded low-cost carriers the past year, Jazeera Airways isn’t looking
Jazeera Airways falls into that first
operating into Kuwait who want to fly in, to stop and has much lined up for 2020.
category with its wireless-IFE system
and operate from our terminal,” Ramachandran is buoyant: “The journey
Jazeera Screens, powered by Bluebox
Ramachandran says. “We are very open to from seven to almost 20 aircraft in a couple
Wow, allowing passengers to connect
that idea but at the moment, partly because of years is quite a challenge, but our team is
to the network to enjoy content on their
of the rapid expansion of the airline, we are up to the job.” n
own devices. The airline also provides
complimentary Wi-Fi at the gate, and
Bishkek bound? Ramachandran meeting with Her Excellency Ambassador
in-seat power in its A320neo aircraft.
Samargiul Adamkulova from Kyrgyzstan to discuss a potential air service to “Most people carry their own devices
the Central Asian city. now, and this service works very well
for the younger demographic of people
who fly with us,” CEO Rohit
Ramachandran says.
Meanwhile, he suggests the
importance of in-seat power to
passengers is going to rise, becoming
almost “as necessary as oxygen”.
“Most people are going to need to
charge their device if they are watching
a movie, especially on a six-hour flight
to London. I think it’s going to become
more of a basic requirement moving
forward – we’re just a bit ahead of
the curve,” he says.
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FAA AND EASA APPROVED +1 207.217.6050 • inquiries@cla.aeroMaking MRO
the cool choice
KLM UK Engineering is a world leading MRO offering high-quality products and (IAAN) in April 2017, KLMUKE is by far the
services from its airport headquarters in Eastern England. It also runs an biggest tenant within the facility, yet the
company has managed to retain an almost
onsite technical training college that is delivering the next generation of EASA-
one-on-one teaching capability for its
standard aircraft engineers and technicians through an innovative training students.
approach, and the introduction of Virtual Learning. LARA’s Glenn Sands Although the requirements for
enrolled for the day. qualification of aviation maintenance
engineers is constantly changing, Flower is
“W
e’ve been involved in training procedures than they might get in the first quick to point out that they’ve kept ahead of
for more than 45 years, even year of their job,” says Ray Flower, Head of the game in this area. “Requirements have
in our previous guises as Air Technical College, at KLM UK Engineering’s shifted rapidly from the British CAA to JAR 66
Anglia, Air UK and now as KLM UK Engineering impressive facility at Norwich Airport. It was through to the EASA standards we currently
(KLMUKE), and are actively developing the clear that he very much enjoys passing on have here and KLMUKE has always been at
next generation of technicians and his knowledge and expertise to students the forefront of this developmental process.”
engineers. It’s worth remembering that after years in the industry. KLMUKE is a fully approved EASA Part 147
when they leave here, they’d have had far Having moved into the specially built training college and holds EASA Part 66
more exposure to technical and practical International Aviation Academy Norwich Approval for Category A1, B1.1, B2 and B1.1
LARA magazineKLM UK ENGINEERING
21
Engineering the engineers of the future:
Ray Flower (pictured right) is KLM UK Engineering’s
Head of Technical College at the Norwich Airport-
based MRO organisation’s standalone EASA Part 147
technical training college. The college offers
students type courses, a BSc degree programme
and aircraft mechanic apprenticeships.
to B2 Extension, delivers type courses, apprenticeship programme. At present we
degree programmes and an apprenticeship offer a Level 3 which is to the Category A
programme for both in-house and third- mechanic standard, the future Level 4
party students. programme is to the Category B1
“All of these courses are focused on the (Mechanical) or B2 (Avionics) standard.
aircraft maintained within the KLMUKE Part “The time difference between the Level 3
145 and so it’s making sure that KLMUKE and 4 programmes is approximately
and the wider industry will have enough 12 months, which is currently within the available is a third-party apprenticeship.
qualified certifying engineers to sustain guidelines of the Institute for Apprentice This means that during their study the third-
future maintenance activities,” Flower adds. Aircraft Technicians,” says Flower. “The party apprentices gain all the necessary
Level 3 should be 48 months in total, but work experience within their own
LEARNING PARTNERSHIPS we have managed to reduce it down to organisation and simply return to KLMUKE
The KLMUKE apprenticeship is performed in 36 months without compromising the when instruction is being taught or a
conjunction with its training partner, City apprentice standard. This may still appear a knowledge examination is needed.
College Norwich, which at the end of the long-time, but we must meet certain criteria “We currently have eight of our own
fully funded three-year course delivers a City for the apprenticeship certificate and more trainees and four from BA CityFlyer on the
& Guilds/NVQ Level Three/EASA Category A1 importantly the quality of apprentice Level 3 (Cat A) course,” says Flower. “Along
qualified aircraft mechanic. During the leaving our College. Part of the mandatory with traditional instruction delivery methods
course the trainees focus on aircraft requirement is that our apprentices have to we provide all our students with access to our
maintenance and structural tasks through a complete a set of Professional Engineering own self-study Virtual Learning Environment
mix of practical and theoretical skills. The Operations (PEO) modules, which are (VLE), which along with instruction equips
students are provided with all the tools and generic and transferrable engineering skills, our students for our assessment processes.
safety equipment they need and receive a whether automotive, marine or aviation.” The VLE product is open to our own staff and
salary throughout their 36 months of The PEOs are delivered jointly by City can be purchased by third-party individuals/
instruction. But in order to remain College Norwich and KLMUKE; the aircraft companies/engineers that need to top-up
competitive Flower reveals that in the near training Approved Cat A or Cat B courses are their knowledge or skill set. For example,
future: “We’re soon going to add a Level 4 delivered by KLMUKE. An extra option that’s an aircraft engineer leaving the military ❱❱❱
laranews.net February/March 2020 LARA22
KLM UK ENGINEERING
“It’s getting them to have
the ability of being able
to work without a
calculator or apply some
lateral thinking that they
need to grasp at times.”
that we need to get them to think about.
Taking the example above, the detail in the
processes involved; selecting the egg,
obtaining the water, the use of utensils and,
importantly, any safety aspects, and the
presentation and access to the edible
elements of the egg. Our essays development
is geared around this approach, and whilst
students do find it a struggle initially, they do
who may well be seeking to move into the quickly under pressure whilst being safe as grasp the concept eventually.”
civil market.” they navigate the complexity and There are between 12 and 13 modules
With the introduction of third-party interactions of different systems; although involved in the KLMUKE basic programmes
students to the apprentice training we do not expect students to master the and for many there is a practical
programme KLMUKE took the decision to fundamentals of ‘thinking outside the box’ assessment. Flower continues, “We are very
start with a clean slate for all these students in the first two years of their programme.” conscious within programmes that not
regardless if any had prior knowledge within everything needs to or should be tested
the industry. Flower explains why: “Although TRAINING THINKING academically, so we have introduced a more
some may have completed Further Education Throughout the training the students are competency-based approach to our
programmes such as Level 2 or 3, we find it tested through quizzes, practical assessment of students. An approach where
best to assume no prior knowledge and little applications and of course formal we rely on other key indicators such as
or no practical skills – in essence we start examination at the end of each module. teamwork, engagement and attitude. This is
from the beginning and cover all the basics. KLMUKE’s approach is to explain, all brought together in our Emulation Zone
“The demanding nature of the syllabus demonstrate, playback and test and at all practical activities, which utilises many of
and the need to process a lot of technical costs to avoid the traditional teach and the live operational systems in our Boeing
information in a relatively short period of examine; this in turn can lead to a ‘learn and 737 aircraft.”
time means there are areas where some dump’ approach by students. Formal tests No matter what the level of course being
students may well struggle. Invariably we take the form of multi-choice questionnaires taught, Flower, as Head of Technical College,
can overcome this by adding a bit of extra and essays, the latter being a bit of a is keen to get away from traditional chalk
basic education at the start. As an example, challenge as students must write logically and talk and “death by PowerPoint” as he
getting students to develop the ability to using technical language when describing calls it; where the students may well be sat
work without a calculator (essential in specific technical detail or representing in classrooms for very long periods with
current EASA assessments) and apply maintenance processes. Flower explains by little or no exposure to equipment or a real
simple lateral thinking to potentially way of example, “If you ask a student how to work environment. “So, we instruct a
complex and multi-system or multi-faceted boil an egg, he or she would invariably specific lesson on an aircraft component or
issues is essential,” says Flower. “It’s a describe how you would ‘take an egg from system in the classroom, then follow up the
gradual but positive developmental process, the fridge, put it in hot water and boil for theory in our purpose-built Emulation Zone.
and our staff are always keen to put the three minutes, take it out and eat it’. We find this approach provides students
extra effort in to instil mental agility during “Whilst this is a true reflection of the with a varied and more interesting learning
lessons and practical tasks. We require our process, it is what we would call a superficial environment, one that reinforces the
students to develop an ability to think response. There’s a lot more to processes theory.” This mixture of classroom ❱❱❱
LARA February/March 2020 @news_LARAYou can also read
