Kuwait – AACO 52nd AGM discussed today strategic issues of relevance to the Arab and global air transport industry, whereby the AGM recalled the role of air transport as a major element in economic development through its role in promoting and facilitating trade and tourism. The AGM highlighted the principles that established the global air transport network which are the Chicago Convention of 1944 and the bilateral air services agreements, focusing on the basic principles of the Chicago Convention that stipulate that states have jurisdiction over their airspace, the air traffic rights given to other states, and all issues related to their own air transport activities. The AGM also discussed the unilateral initiatives being adopted by some states to impose their terms on other states highlighting the negative effect this brings to the sustainable development of international air transport.
Air Transport Relations
Based on these discussions, AACO 52nd AGM adopted a resolution that encourages states to avoid protectionist policies in air transport; and to avoid adopting unilateral and extraterritorial measures that may affect the orderly, sustainable, and harmonious development of international air transport; the AGM also called on states to continue with flexible market access policies due to the benefits those policies bring to the consumer and the sustainable development as well as to the efficiency of airlines’ operations; and to resort to dialogue and consultations as the best approach to agree on any issue related to air transport services;
Proliferation of Passenger Rights Regulations
AACO AGM highlighted that airlines are suffering from the proliferation of passenger rights regulations that in most cases contradict with international agreements that regulate the liabilities of airlines, are extraterritorial, do not reflect the fact that inconveniences to passengers are not always caused by airlines, and impose compensation levels and stringent requirements that are making it difficult for airlines to continue to meet the demand on air connectivity; accordingly the AGM encouraged states to formulate passenger rights regulations based on the following principles: Conducting consultations with all relevant stakeholders before adopting regulations, compatibility between regulations, respect of jurisdictions, joint liabilities, consistency with international treaties, service differentiation, looking into the reasons behind the inconveniences especially checking whether the reasons do not fall within the control of the airline or are related to the safety priority, proportionality between the damage and the relevant compensation, and clarity.
Unruly Behavior onboard Aircraft
AACO AGM also discussed that unruly behavior on-board aircraft could cause harm and inconvenience to passengers and airlines alike, and could affect the safety of the concerned flights, and accordingly the AGM encouraged states to accede to Montreal Protocol 2014 as an enhanced legal deterrent to unruly behavior on-board aircraft.
Reducing the environmental Impact of Aviation
AACO 52nd AGM reaffirmed the commitment of AACO member airlines to work vigorously with all stakeholders to mitigate the industry’s environmental footprint, and called upon all stakeholders to consider CORSIA as THE market-based measure for international aviation without imposing inappropriate economic burden on international aviation and to take into consideration ICAO 40th Assembly’s resolutions, particularly on studying the long-term economic impact of the 2050 goal.
The AGM also highlighted that the development of infrastructure is crucial to delivering a better environment, safer air transport, and better service to the travelers. This development should expand, streamline, and defragment the airspace infrastructure to allow optimal flight paths, and should expand ground facilities.
The AGM as well called upon all stakeholders to commit any financial returns resulting from environmental measures into developing low net emission fuel and make it commercially available for the aviation industry.
The AGM also called upon technology partners to invest in game-changing technologies that would maintain the economic accessibility of air travel while reducing its environmental impact.
Finally the AGM resolved to focus on developing human resources to deal with issues related to aviation and the environment in the future, and to develop guidelines for future generations working in the air transport industry on how to address aviation's impact on the environment.
Click here for the full text of AACO’s 52nd AGM Strategic Resolutions.
Arab-EU Aviation Summit 2020
The AGM was informed that an Arab – EU aviation Summit will be held in Beirut on 23-24 March 2020 jointly organized by the Arab Civil Aviation Organization and the European Commission – DG MOVE, with the kind hosting of Middle East Airlines and the support of the Arab Air Carriers Organization.
AACO Secretary General’s Report
In his report to the AGM, AACO Secretary General, Abdul Wahab Teffaha, described the state of the global and Arab economy which both registered a slowdown in economic growth where reasons of that slowdown differ from one region to the other. The Secretary General also presented Arab air transport statistics and the development of this sector through the decades in relation to regional and global factors that had an effect on the development of the sector.
The Secretary General focused in his report on the role of the Arab airlines as major players in global transport by attracting inter-continental traffic through their hubs, where Arab airlines are now present on the global aviation map through their competitiveness which is fueled by the quality of their product, the modernity of their fleet, the competitiveness of their fares, the continuous development of their airport infrastructure, and, most importantly, by treating their passengers as guests so that they ensure they enjoy their travel experience. The Secretary General highlighted that Arab airlines are effectively managing capacity on the individual level to meet the fluctuations in demand. As a result, in recent years a slowdown was witnessed in the number of new aircraft introduced into the fleets of Arab airlines which resulted in the world's youngest, most efficient, and, most importantly, lowest emission producing fleet.
AACO Secretary General also talked about the factors that give an optimistic outlook for the Arab air transport as follows:
1. The confidence of the passenger that Arab airlines’ level of service is among the best, if not the best, in the world.
2. An airport infrastructure that is being constantly developed to anticipate the needs of future growth.
3. The region’s central geographic location.
4. The region’s cultural, historical, religious, and civilizational heritage, and its natural diversity that position the Arab region as an important touristic attraction.
5. The young population.
6. Information technology that enabled today’s and tomorrow’s passengers to transcend geographical boundaries between countries.
AACO Secretary General asked governments for supporting the crucial role of air transport in sustainable development and in job creation in sectors that depend on aviation, in particular to:
1. Continue adopting flexible policies with regards to traffic rights and market access.
2. Expand airspace capacity through flexible use of airspace between civil and military purposes, and through cooperation with other regions to smoothly manage air traffic flows.
3. Take into account, when considering taxes and fees on civil aviation, the negative impact of these taxes and fees on touristic attractiveness versus their direct impact on governmental revenues.
4. Consult with the concerned in the air transport sector with regards to regulating the relationship between airlines and their customers.
The Secretary General went on to talk about the issues that airlines have to deal with and on top of those issues is addressing climate change and improving their environmental impact. AACO Secretary General reminded the AGM that the approach for addressing the environmental impact of civil aviation cannot seriously happen except through the cooperation of all concerned industry stakeholders. He reminded the AGM of the four pillars that the air transport industry adopted and which were adopted as well by the International Civil Aviation Organization and these pillars are: the development of technology, to enhance the airport and airspace infrastructures, the use of sustainable fuel with reduced net environmental impact, and market-based measures. He highlighted the worldwide wave of taxes and fees as well under the banner of the environment wondering about how those taxes would benefit the environment since none of the revenues coming from these taxes are re-invested in improving the environment.
The Secretary General highlighted also the priorities of AACO’s work; being joint work, representing the interests of AACO member airlines, raising awareness and knowledge through a number of publications, statistical analyses and various forums, in addition to focusing on development of human resources through AACO’s regional training center. In particular, the Secretary General mentioned in the area of representing the interests of AACO member airlines the EU regulation no. 712/2019 that substituted EU regulation 868/2004 on fair competition. He referred to the Arab efforts that resulted in reducing some of the ideas that existed in the initial draft of the regulation, and focused on the importance of the way the European institutions would implement the regulation highlighting that in implementing the regulation, they should respect the sovereignty and right of other states to adopt economic, financial and social policies that they deem appropriate for their countries, and that this, or any other regulation, should not be used to impose a certain course of aviation relations between states.
Within the framework of the relation between the EU and Arab regions, the Secretary General mentioned that the Arab Civil Aviation Organization and the European Commission, with the support of Middle East Airlines and AACO, are organizing an Arab-European Aviation Summit that will be held in Beirut on 23-24 March 2020.
The Secretary General also highlighted the Montreal Protocol 2014, which amended Tokyo Convention 1963 regarding dealing with unruly passengers, and which still needs to be ratified by one more state to enter into force. The Secretary General called on member airlines to advocate to their governments the ratification of this Protocol since, even if the Protocol enters into force, it will be only applied on operations between states that have ratified it.
Before concluding his report, the Secretary General announced the launch of the weblink www.a4g.org which redirects to AACO current website which remains www.aaco.org, whereby A4G means "Airlines for the Globe".
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, 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.
Election of Chairman and members of AACO Executive Committee
AACO 52nd AGM elected Mr. Mohamad A. Al-Hout, Chairman/Director General of Middle East Airlines, as Chairman of the Executive Committee of AACO which is the second highest authority of AACO. The Executive Committee which members were also elected today by the AGM, comprises of nine members which are, in addition to Mr. Al-Hout, as follows:
• Mr. Abdelhamid Addou / Chairman & Chief Executive Officer – Royal Air Maroc
• Mr. Tony Douglas / Group Chief Executive Officer – Etihad Aviation Group
• Eng. Kamil Al-Awadhi, Chief Executive Officer, Kuwait Airways
• Capt. Ahmed Adel / Chairman & CEO – EGYPTAIR
• H.E. Mr. Akbar Al Baker/ Group Chief Executive – Qatar Airways
• Mr. Stefan Pichler / President & CEO – Royal Jordanian
• H.E. Mr. Sami Sindi, Director General, Saudia
• Mr. Ilyes Mnakbi / Chairman & President – Tunisair
AACO’s Annual Report and Annual Air Transport Statistics
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 5.6% in 2018 compared to 2017, reaching around 313 million passengers.
• Passenger numbers using Arab airports in 2018 increased by 5.3% to reach 378.5 million passengers.
• Cargo handled at Arab airports increased by 2% in 2018 reaching 9 million tons of cargo.
• AACO members served 459 destinations in 128 countries with 4,092 average daily flights, offering 902,987 daily seats on 1,406 aircraft in 2018.
• AACO members’ operating revenues increased by 4.8% in 2018 reaching USD 69.6 billion.
• AACO members carried around 229.6 million passengers in 2018 (an increase of 2.8% compared to 2017) and 6.94 million tons of cargo.
Other Highlights of AACO 52nd AGM
Speech by the Director General of the Arab Civil Aviation Organization
In his speech, Eng. Abdennabi Manar, Director General of the Arab Civil Aviation Organization (ACAO), focused on the industry issues that ensure a positive outlook for the future development of the industry reaffirming ACAO’s commitment to cooperate with the Arab Air Carriers’ Organization to jointly reach the common goals of enhancing the role of civil aviation 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 Mr. Mark Pilling on challenges facing the Arab Airlines
Mr. Mark Pilling, Vice President for Publishing and Events from Flight Global, delivered a speech on the challenges facing the Arab Airlines
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. Vijay Poonoosamy / Director International and Public Affairs / the QI Group. The Panelists were:
• Mr. Henrik Hololei/ Director General for Mobility and Transport/ European Commission
• Eng. Kamil Al-Awadhi/ Chief Executive Officer/ Kuwait Airways
• Capt. Ahmed Adel/ Chairman & CEO/ EgyptAir Holding Company
• Mr. Abdulmohsen Jonaid/ Chief Executive Officer/ SaudiGulf Airlines
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 Arab Civil Aviation Organization (ACAO), the European Commission, the International Air Transport Association (IATA), the African Airlines Association (AFRAA), and the Latin American and Caribbean Air Transport Association (ALTA), 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 52nd AGM Chairman, Mr. Yousef A. ALJassem Al-Saqer/ Chairman of Kuwait Airways, for leading this event and for the generous hospitality of Kuwait Airways.
Date and Venue of Forthcoming AGM
The forthcoming AACO 53rd AGM will be convened in Beirut by kind invitation of Middle East Airlines on 28-30 October 2020.