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Cairo, Egypt – User Charges, Value Added Taxes, the revision of EU reg. 868/2004 on competition in air transport, the EU Package Travel Directive, the EU General Data Protection Regulation (GDPR), Montreal Protocol 2014, Montreal Convention 1999, and the Revised Tunis Convention of 1979 on Mutual Tax Exemptions, were highlighted today in a number of strategic resolutions adopted by  AACO 51st Annual General Meeting held in Cairo under the Patronage of the Ministry of Civil Aviation and under the Chairmanship of Capt. Ahmad Adel /Chairman & CEO, EgyptAir Holding Company. 

Due to the big role that air transport plays in sustainable development and due to the importance of enhancing the touristic competitive position of Arab states; and as a number of Arab states reviews the levels of airport and air navigation charges from time to time; AACO’s AGM called on Arab governments to follow the principles set out in ICAO’s guiding Doc 9082 and to conduct analysis of the financial effect of the newly proposed charges on the operations of airlines so that the increase in charges does not reflect a decrease in the touristic attractiveness of the country.

AACO 51st AGM also called upon states around the world and particularly members of the League of Arab States to follow the guidelines and resolutions of ICAO with regards to taxation, to fully exempt international air transport from VATs, to facilitate the procedures of reclaiming all VATs paid by airlines, and in general to refrain from imposing counterproductive taxes on international air transport activities, since the revenues raised are far outweighed by the economic benefits that are relinquished as a result of reduced demand for air travel and air cargo shipments. In this area, the AGM directed AACO to continue its cooperation with regional and international organizations to advocate with governments regarding the mentioned points.

Conventions had their share of focus at AACO’s 51st AGM. The AGM called on member airlines to follow up on the ratification of the new text of the Tunis Convention (on mutual exemption of taxes and charges on activities and equipment of Arab carriers) by Arab states and mandated the Secretariat General of AACO and the AACO Aeropolitical Watch Group to follow up on the matter and inform the AGM of updates; 

The AGM also urged governments, that have not ratified Montreal Protocol 2014, to do so as a matter of urgency in order to have an international legal instrument come into force that would strengthen dealing with unruly passengers in a more effective way and would help in preventing future incidents. 

The AGM also urged Arab governments, that have not ratified Montreal Convention 1999 to do so the soonest possible due to the benefits that the convention brings to passengers, airlines, and cargo shippers.

The aeropolitical aspects in the relations with the European Union were among the issues highlighted by AACO 51st AGM. The AGM agreed that AACO member airlines take into consideration the results and recommendations of the legal study commissioned by AACO on remedies that Arab airlines and states can use if the revised EU reg. 868/2004 (on competition in air transport with third countries) is adopted and triggered against any of these entities and to recommend to their governments to take the mentioned recommendations and results into account. 

As privacy and personal data protection are high on the agenda of many governments including at EU-wide level, member airlines agreed to ensure that internal legal and technical procedures have been put in place to ensure compliance to the EU General Data Protection Regulation (GDPR).

The EU Package Travel Directive was transposed into national laws by EU Member States earlier in 2018. Recommendations on how to comply with the new requirements under these laws were developed by AACO Aeropolitical Watch Group. The AGM agreed that member airlines take these recommendations into account for reducing the risks of new liabilities under the EU Package Travel Directive. 

Click here for the full text of AACO’s 51st AGM Strategic Resolutions.

In his report to the AGM, AACO Secretary General described the state of affairs of air transport. The Secretary General reminded the AGM of the benefits that liberal policies in air transport have brought to the customer (More choices and reduced prices), the airlines (that were transformed into more efficient entities), and the economic development (higher contribution of travel and tourism in economic development). 
While the region is passing through crises, economic growth as well as growth in air transport were impacted; however, the Secretary General reaffirmed that the long-term foundation of the Arab air transport industry is still resilient and robust due to the region’s young population, its natural, cultural, and human wealth, its geographical location, and its airlines’ culture of service excellence; all combined with the revolution in communication technologies and the transformation of the customer. 

Within this environment, the Secretary General highlighted the areas of focus of AACO’s work during the past period and in the forthcoming period as follows:
1- Working under the umbrella of the League of Arab States, in cooperation with the Arab Civil Aviation Organization, to conclude the revision of the Tunis Convention on 1979; The Secretary General invited member airlines to advocate for the ratification of the revised Tunis Convention of 1979 as it was adopted by the League of Arab States in its various bodies. 
2- Working on guidance material that was developed for the use of Arab states in dealing with the revised EU reg. 868/2004 when adopted.
3- Initiating advocacy that followed the ban on the transport of Personal Electronic Devices in passenger cabins from some Arab airports.
4- Initiating advocacy following the proposal included in the tax reform bill in the US that would’ve imposed taxes on non-US airlines’ sales.
5- Calling on additional Arab states to ratify MC99 and MP14.
6- Working with all concerned to build the capabilities of airlines to be ready for the implementation phase of ICAO’s CORSIA early next year. 
7- Advocating, in cooperation with IATA, with governments on thoroughly reviewing proposals that increase user charges. 
Another priority that AACO works on and that was highlighted by the Secretary General is assisting airlines in rationalizing their costs. AACO’s activities in that regard, cover fuel, flight charts, MRO, ground services, training and others; in addition to two new programmes covering security information and electronic flight charts, while highlighting the continuity of AACO’s Emergency Response Planning project and the work of the Security Information Exchange Group that now gathers twenty AACO member airlines. 

Raising awareness, in cooperation with AACO partners in ACAO, ICAO, IATA and other associations, has its share of AACO’s areas of focus. AACO’s diversified forums, website, social media accounts, and periodic bulletins including AACO’s Annual Report and Annual Arab Air Transport Statistics Bulletin constitute a big chunk of AACO’s focus. 

The Annual Report and the Annual Arab Air Transport Statistics bulletins were distributed at AACO’s AGM, and we highlight below some of the data included:
• The Arab air transport market grew by 7.7% in 2017 compared to 2016, reaching around 297 million passengers.
• Passenger numbers using Arab airports in 2017 increased by 5.6% to reach 359.4 million passengers.
• Cargo handled at Arab airports increased by 5.6% in 2017 reaching 8.8 million tons of cargo.
• AACO members served 443 destinations in 127 countries with 4,048 average daily flights, offering 882,098 daily seats on 1,363 aircraft in 2017.
• AACO members’ operating revenues increased by 8.7% in 2017 reaching USD 64.5 billion.
• AACO members carried around 224 million passengers in 2017 (an increase of 4.9% compared to 2016) and 6.9 million tons of cargo (an increase of 5.5% compared to 2016).

The Secretary General concluded his report, expressing gratitude to the support of AACO member airlines, partner airlines, and industry partners, and partner associations such as ACAO, ICAO, IATA and others. He also thanked the AGM chairman and his team for their outstanding efforts to make this AGM a success; as well as the Chairman and members of the Executive Committee, affirming AACO’s permanent credo: We are proud to serve you…

Click here for the full speech of AACO Secretary General. 

Other Highlights of AACO 51st AGM:

Speech by. Eng. Abdennabi Manar, Director General of the Arabi Civil Aviation Organization
In his speech, Eng. Abdennabi Manar, Director General of the Arab Civil Aviation Organization (ACAO), highlighted the important role of air transport associations and organizations in facilitating cooperation and supporting the air transport sector, and the challenges that are facing the sector in the Arab region, while reaffirming the Arab Civil Aviation Organization’s commitment to cooperate with AACO and all air transport associations to jointly achieve common goals in enhancing the role that civil aviation plays in economic development.

Click here for the full speech of ACAO Director General.

IATA’s Speech

Mr. Alexander de Juniac, IATA Director General and CEO presented the IATA speech.

Click here for the full speech of IATA Director General & CEO.

Presentation by the President and CEO of AIRLINK on Disaster Response and Humanitarian Crises  
The President and CEO of AIRLINK gave a presentation on Disaster Response and Humanitarian Crises. AIRLINK is a rapid-response humanitarian relief organization that links airlines with pre-qualified nonprofits. AACO invited AIRLINK to this year’s AGM to show how utilizing commercial aviation capacity on scheduled air carriers supports NGOs in their humanitarian relief efforts. The organization usually mobilizes the aviation community to ensure emergency supplies and relief workers reach those impacted by natural disasters and other humanitarian crises around the globe.

Presentation by Mr. Chris Tarry about Arab Airlines, Opportunities and Challenges
Mr. Chris Tarry, Director and Chairman of CTAIRA, delivered a presentation about Arab Airlines, Opportunities and Challenges.

CEOs’ Panel
The Secretariat General of AACO invited member airlines, regional and international organizations, industry partners, partner airlines, air transport professionals, and press to participate in the CEOs’ Panel. 
The CEOs’ Panel is a discussion panel gathering Chief Executive Officers and decision makers on strategic issues in the aviation industry, and was moderated this year by Mr. Michael Bell, Senior Client Partner in Korn Ferry. Panelists that participated in the discussion were:
1. Mr. Henrik Hololei / Director General for Mobility and Transport/ European Commission 
2. Capt. Sameh EL Hefni / President of Egyptian Civil Aviation Authority 
3. Mr. Mohamad A. El-Hout / Chairman & Director General / Middle East Airlines 
4. Mr. Adel Redha / Executive Vice President and Chief Operations Officer/ Emirates Airline

Participation
The General Assembly was attended by the CEOs of AACO member airlines, AACO partner airlines and industry partners from aircraft and engine manufacturers, Global Distribution Systems (GDSs), IT providers and other specialized companies relevant to the Arab air transport industry. The AGM also welcomed the International Civil Aviation Organization (ICAO), the Arab Civil Aviation Organization (ACAO), the European Commission, the International Air Transport Association (IATA), and the African Airlines Association (AFRAA), in addition to a number of aviation experts, where the number of delegates surpassed 300.

Closing of the AGM 
As the AGM concluded, AACO members thanked the 51st AGM Chairman, Capt. Ahmed Adel, for leading this event and for the generous hospitality of EgyptAir.

Date and Venue of Forthcoming AGM 
The forthcoming 52nd AGM in 2019 will be convened in Kuwait by kind invitation of Kuwait Airways.