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Gary Chapman, President Group Services and dnata, Emirates Group, said: “Emirates has been actively committed to the f
Issue 29 | June 2018 The Government Affairs Journal of Emirates

2017-18 results | Joining WTTC against illegal wildlife trade | The US3 campaign outcome | Sustaining the A380 supply chain | Tourism growth in Canada and New Zealand | Q&A with visitBerlin

Emirates Group announces 30th consecutive year of profit On 9 May, the Emirates Group announced its 30th consecutive year of profit totalling AED 4.1 billion (US$1.1 billion) in 2017-18, with revenue exceeding AED 100 billion (US$27 billion) for the first time in the Group’s history.

In line with the overall profit, the Group declared a dividend of AED 2.0 billion (US$545 million) to its owner, the Investment Corporation of Dubai. Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “Business conditions in 2017-18, while improved, remained tough. We saw ongoing political instability, currency volatility and devaluations in Africa, rising oil prices which drove our costs up, and downward pressure

2017-18 Financial Highlights $

$

$

$

GROUP PROFIT

1.1 billion

US$

GROUP REVENUE

PAX CARRIED

NO. OF AIRCRAFT

58.5 million 268

2.6 m tonnes 68 MONTHS

GROUP EMPLOYEES

SEAT FACTOR

27.9 billion

103,363

6.7 billion

US$

AV. AIRCRAFT AGE

US$

CARGO CARRIED

FUEL COSTS

DESTINATIONS

157

77.5%

on margins from relentless competition. On the positive side, we benefitted from a healthy recovery in the global air cargo industry, as well as the relative strengthening of key currencies against the US dollar.”

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The full annual report, audited by PricewaterhouseCoopers, can be read here: https://cdn.ek.aero/downloads/ek/pdfs/ report/annual_report_2018.pdf

Emirates adopts WTTC agreement on illegal wildlife trade

As a founding signatory of the Buckingham Palace Declaration in 2016, Emirates has taken a strong stance against the illegal trade of wildlife and wildlife products, which is having devastating consequences for animals, plants and ecosystems in many parts of the world. The United Nations World Wildlife Crime Report shows that as many as 7,000 species of animals and plants from all parts of the world are affected. Nature-based tourism helps to generate significant levels of income for many communities; in some countries, tourism depends largely on nature and wildlife. Therefore, the loss of wildlife may seriously impact the viability of tourism and its contribution to local economies. In response, the World Travel and Tourism Council (WTTC) launched a Travel and Tourism Declaration on Illegal Trade in Wildlife at its Global Summit in Buenos Aires on 19 April 2018. Signatories to the Buenos Aires Declaration, including Emirates, have

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committed to four pillars: • Expression and demonstration of agreement to tackle the illegal wildlife trade; • Promotion of responsible wildlife-based tourism; • Awareness raising among customers, staff and trade networks; and • Engaging with local communities and investing locally. Emirates’ signing of the Buenos Aires Declaration builds on our long-standing stance against the illegal wildlife trade. Several of our Airbus A380s continue to carry the message against the illegal wildlife trade around the world, while our SkyCargo division has implemented robust internal procedures.

Gary Chapman, President Group Services and dnata, Emirates Group, said: “Emirates has been actively committed to the fight against illegal wildlife trade for some years now and we are delighted to support this initiative serving the broader Travel & Tourism sector, which clearly has such a critical role to play particularly within the communities who are most affected by this activity.” Emirates has long supported investments in wildlife conservation and nature-based tourism, including the management of the Dubai Desert Conservation Reserve in the UAE and establishing the Emirates One&Only Wolgan Valley conservationbased resort in Australia.

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How a US$50 million campaign by Delta, United and American reaffirmed Emirates’ long-standing financial transparency

More than three years ago, Delta Air Lines, United Airlines and American Airlines (US3) started a campaign to block Emirates’ access to the United States and undermine US Open Skies policy. They have reportedly spent in excess of US$50 million of shareholder money on this campaign, which recently concluded with the US government reaffirming that Emirates, for many years, has issued audited financial reports in accordance with international accounting standards. That conclusion comes after informal discussions between the US State Department and the UAE government led to a “Record of Discussion” and related side letter, both of which were negotiated outside the scope of the US-UAE Open Skies agreement. The US3 had sought formal consultations between the two governments, a moratorium on additional flights and, in particular, that Emirates would not operate more fifth freedom flights to the US via Europe. However, guided by the best interest of consumers rather than the US3’s anti-competitive self-pleading, the Record of Discussion mutually reaffirmed all the rights contained in the US-UAE Open Skies agreement and expressed a sincere desire to maintain the benefits it has created. The US3’s anti-competitive campaign was premised on the contention that alleged subsidies and maintaining Open Skies with the UAE would lead to economic harm and job losses. This doomsday scenario has proven to be nothing more than a sound-bite. Have the US3 suffered provable commercial harm during the last three years? No – in fact they have posted record-breaking profits. They are, by far, the most profitable airlines globally, according to IATA. Have the US3 been forced to trim their workforce? No – more than 10,000 new employees have been hired by the US3 over this period, according to the US Department of Transportation’s Bureau of Transportation Statistics. Delta’s CEO touted this is just the tip of the hiring iceberg – Delta alone plans to hire 25,000 additional employees over the next five years. Facts are stubborn things and they ruined a protectionist campaign based on nothing other than hollow allegations and innuendo, including that Emirates has benefitted from subsidies from the Dubai government. From the beginning of this campaign, Emirates has systematically and convincingly disproven the subsidy allegations with facts. The Trump administration correctly concluded that Emirates is fully transparent and that its financial transparency fully rebuts the allegations against it.

In trying to limit Emirates’ access to the US and thereby deny consumers competitive choice, the US3 also demanded the US government limit fifth freedom flights. In the past, Delta CEO Ed Bastian has said “[f]reezing and eliminating fifth freedom would be a great start” and Doug Parker, American Airlines CEO, commented “what really matters is that they will not add fifthfreedom flights”. Fifth freedom rights are a core element of every one of the US’s more than 120 Open Skies agreements. Passenger carriers, including Delta and United, and especially all-cargo airlines, rely on fifth freedom operations when it makes commercial sense to do so. The key is commercial flexibility to respond fully to market demand. The side letter from the UAE government to the US government fully reaffirmed fifth freedom rights and full commercial flexibility.

The UAE government advised it is not aware of any “current plans in place [by its carriers] to make any changes to the Fifth Freedom services that they operate in accordance with the Agreement.” It also clearly and unambiguously stated “nothing in this letter amends or otherwise changes the Agreement or any rights contained therein.” In other words, without limitation, all rights – including fifth freedoms – remain fully intact for carriers of both countries. The US3 got the result they deserved: their US$50 million lobbying campaign did not work. It is time for the US3 to turn their attention instead to investing shareholder money in their product to enable them to compete more effectively in the marketplace. Investment in improving their customer service would deliver better returns compared to protectionist political campaigns targeting consumer choice.

US State Department press release:

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“Reflecting our two countries’ strong and multi-faceted political, economic, and strategic partnership, the Record of Discussion affirms both governments’ intention to promote best practices for marketplace participation by their airlines providing scheduled service under the 2002 Air Transport Agreement, all rights and provisions of which remains in force.” From The Economist: “When you look at the real substance of the agreement, it is clear that the American airlines did not get anything they wanted.”

From The Associated Press: “In the letter, obtained by The Associated Press, the Emirati economic minister says both of his country’s airlines “voluntarily” informed the UAE that they had “no current plans in place to make any changes” to the routes. There is no talk of a freeze or commitment not to change those plans in the future. . . . [T]he State Department had circulated talking points ahead of time to be used by government spokesmen if asked whether the deal included a freeze. “No,” said the talking points, which were obtained by the AP.” From The Wall Street Journal: “The agreement falls well short of demands by some U.S. carriers and labor unions that have spent an estimated $50 million on lobbying over the past three years for U.S. lawmakers to curb the expansion of three state-owned carriers: Emirates, Etihad and Qatar Airways.”

From Bloomberg: “Indeed, the wave of consolidation among North American airlines means it’s that region, rather than the Gulf, that has accounted for more than half of all profits globally over the past five years. The lap of wealth is a strange position from which to play the victim card.” 3

Emirates’ A380 order: sustaining a deep, pan-European supply chain

The Airbus A380 programme will soon celebrate its 20th anniversary. The programme’s significant economic impacts and positive effects on European manufacturing supply chains are felt far beyond the Airbus-producing countries alone – the programme relies on hundreds of suppliers from across Europe. The A380 is the world’s largest passenger aircraft and, with 103 in operation, it is a key pillar of the Emirates aircraft fleet. The latest Emirates order for 36 A380s, to be delivered from 2020, includes a firm commitment for 20 aircraft and an option for 16 more. It brings the total A380 orders by Emirates to 178 (including options). For Emirates, the A380 has proven and continues to prove to be an immense success. Larger aircraft can help to alleviate constraints on airport capacity and landing slots in many markets. Furthermore, transporting a greater number of passengers at the same time lowers both operational costs and reduces per passenger CO2 emission levels. The depth of the programme’s economic and supply chain benefits is, however, sometimes overlooked. The A380 consists of about 4.5 million individual parts that are supplied from many specialised aerospace manufacturers, both large companies as well as small and medium-sized enterprises (SMEs). While such components are sourced globally, the majority comes from Europe. Indeed, the A380 is a truly unique product

that relies on tightly integrated supply chains made possible by the EU’s Single Market. Unsurprisingly, therefore, the majority of jobs linked to the A380 production process are also sustained in Europe. According to recent economic analysis, approximately 125,0001 direct, indirect and induced jobs are linked to the A380 programme. Whilst France, the UK, Germany and Spain see

Total jobs* supported by the A380 program in the EU (2006-2024) Netherlands 2% Sweden 2% Belgium 4%

Others 1% France 28%

Spain 16%

Germany 23% United Kingdom 24%

France Belgium

United Kingdom Netherlands

Germany Sweden

Spain Others

*Total jobs include direct, indirect and induced jobs Others include Italy and Finland

the highest employment impact, significant numbers of jobs are also sustained in, for example, Belgium, the Netherlands, Sweden, Finland and Italy. The A380 not only creates manufacturing and assembly jobs, but also strongly contributes to a thriving services sector, from R&D to design, to aftermarket sales and maintenance and repair. Approximately 550 companies across the supply chain play a role in the A380 production line, providing, for example, structural components such as fuselage panels or landing gear, or interior modules such as avionics, hydraulic piping or seat covers. The majority of these companies are SMEs, specialised in niche segments and technology, which employ specialist and highly-skilled employees. Considering the scale of the A380, many of these SMEs have seen increases in revenues, which can be reinvested in production processes, technology and employee skills. They, in turn, contribute to job creation in their respective regions and deliver vital economic growth at a time of economic recovery across Europe.

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1 Economic analysis paper by Professor Philip

Lawrence FRAeS FRSA

One A380 - many diverse suppliers Rudder

Wing spoilers

Aries Madrid, Spain

Central fuselage

Patria Aerostructures OY Halli, Finland

Leonardo Aeronautics (Alenia) Polvica di Nola, Italy

Flap track fairings

Stabilisers

FACC Operations GmBH Reichersberg, Austria

MTorres Torres de Elorz, Spain

Stringers

S.A.B.C.A. Brussels, Belgium

Slats and fuselage panels Sonaca Charleroi, Belgium

Cockpit frames Stelia Aerospace Méaulte, France

Cargo floor panels

Elbe Flugzeugwerke GmBH Dresden, Germany

MOLE (Mid and Outer Fixed Leading Edge) SAAB Linköping, Sweden

© 2018 Paul McCarthy

4 © 2018 Paul McCarthy

Fuel system

Eaton Ltd Slough, UK

Landing gear

Asco Industries NV/SA Zaventem, Belgium

Electrical components

HOLMCO Holmberg GmbH Berlin, Germany

48.9 percent US$60

Emirates’ contribution to the total A380 programme

billion

value of past and future Emirates A380 orders

49 destinations 125 thousand

served by Emirates’ A380s

jobs direct, indirect and induced jobs linked to the A380 programme

We asked different stakeholders for their reactions to the recent Emirates A380 order. This is what they had to say: “The recent Emirates order for 36 additional Airbus A380’s is great news for Airbus and the highly skilled workforce in the UK and across Europe playing a part in the A380 manufacturing. Thousands of jobs, directly and indirectly, depend on the A380’s success and this order will mean jobs are created and sustained across the supply chain, from SME’s to the Airbus wing builders in Broughton, Wales. I’m proud that the UK is a world leader in aerospace manufacturing and of the vital role that the UK workforce plays in the A380 programme.” Jacqueline Foster Member of the European Parliament for the North West of England – Deputy Leader of the Conservative MEPs Conservative Spokesman on the Transport & Tourism Committee Vice-Chair of the Sky & Space Parliamentary Intergroup “We are very pleased that an airline like Emirates has confidence in the A380 programme. MTorres has not only participated in the A380 fuselage and wings manufacturing, but has also delivered both aluminium and composite materials for the vertical and horizontal stabilizers. As a provider of sophisticated production and integration systems, MTorres will keep supporting the aerospace industry and continue to explore new and more efficient production ways in this demanding market. An amazing programme such as the A380 encourages our company to provide its customers with new solutions that improve their productivity and efficiency.” Luis Pérez Oliva Senior Vice-President Customers and Markets MTorres

“We are pleased to see stability in the Airbus A380 production line. As a manufacturer of slats and fuselage panels for the A380, it is a critical development for Sonaca. We have about 40 highly skilled employees here in Belgium working on and supporting production of Sonaca A380 components and parts, ranging from engineers to machine and assembly line operators and technicians. Supplying those A380 components to Airbus generates significant revenues which in turn enable us to reinvest in our employees and the technology we use. This creates a win-win situation: for Sonaca and our employees and it also has a positive impact on the local region in terms of economic growth.” Bernard Delvaux CEO Sonaca “I am delighted that Emirates continues to support the largest passenger aircraft in the Airbus fleet and recognizes the potential for sustainability. This is also good news for Hamburg - with 300 companies, research institutes and universities one of the largest aviation locations in the world. An important building block for the success of the aviation location is the top cluster Hamburg Aviation, in which all major companies in the industry are active. There, the future is firmly targeted. Research, qualification and internationalization are building blocks of success, and that’s especially important to us.” Frank Horch Hamburg Senator for Economics, Transport and Innovation Ministry of Economy, Transport and Innovation in Hamburg

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The slow rebound in Canada’s tourism

In May 2017, the Canadian government set out a plan to engage all stakeholders to target growth in international tourism to Canada. Called the New Tourism Vision, it is a five-year whole-of-government approach to capitalise on the global opportunities that tourism offers, whilst recognising its importance in expanding trade opportunities and foreign direct investment. Tourism is Canada’s largest service export, generating CA$41.2 billion in Gross Domestic Product (GDP) in 2017, which was over 2% of total GDP. One in 10 Canadian jobs, equivalent to over 1.8 million, depends on the tourist economy. International visitors contributed CA$21.3 billion in tourism revenues in 2017, while domestic tourism generated CA$76.1 billion. Despite the significance of tourism to Canada’s economy and its growth potential, Canadian tourism has only recently seen relative prosperity. Based on data sourced from the United Nations World Tourism Organisation (UNWTO) over the past two decades, Canada would regularly feature in the top 10 ranks in terms of international tourist arrivals in the world. After ranking 10 in 2003, Canada dropped off this list in 2004 and has yet to regain its position to date. In fact, international tourist arrivals in Canada declined by 23% between 2009 and its highest level prior to that in 2000. 25 20

International tourist arrivals in Canada (millions)

9#

9# 9# 7# 8# 7#

10#

15

UNWTO top 10 rank

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

0

1998

5

1997

10

Source: UNWTO Tourism Highlights, 1998-2017 Editions

With fluctuating levels over the years, the volume of arrivals has gradually increased from 2009 to reach just under the 2000 level of 20.4 million tourists in 2016. However, Canada remains off the top 10 ranking, showing that its tourism growth was far outpaced by other countries. For example, tourist arrivals in the US grew by 56%, or 27.2 million, between 1997 and 2016, while its UNWTO rank in terms of international tourist arrivals has never dropped below third during

this period. Similarly, France and Spain were ranked first and third in both 1997 and 2016, with international tourist arrivals having grown by 24% and 75% between these years, respectively. This represents a significant lost opportunity for Canada, while many other countries have generated substantial economic benefits over the past decade from the opening up of new tourism export markets such as China, India and Vietnam. Growth in Chinese international tourism expenditure, for example, was 974% between 2006 and 2016. The New Tourism Vision has now established an accelerated plan to achieve the following targets for tourism growth: 1) to be within the top 10 most visited countries in the world by 2025; 2) to grow the number of international overnight visits to Canada by 30% by 2021; and 3) to double the number of tourists from China by 2021. One of the three measures identified to achieve these targets focuses on making Canada easier to access for international travellers by improving cost, travel time (including flight connections), and ease of access to a destination. Liberalising Canada’s bilateral air transport agreements was listed as one of the actions prioritised under improving access. According to the New Tourism Vision, air transport agreements play a critical role in facilitating air passenger arrivals to Canada by allowing more direct flights between countries and better connections. Moreover, expanding air transport agreements will support growing volumes of international air passengers to Canada and help achieve its tourism goals. Based on preliminary data from Statistics Canada, 20.8 million tourists were registered in 2017, the highest ever in Canadian history. Although this barely crossed the previous record in 2000, the lost opportunity in the past two decades is substantial. If Canada had pursued a more liberalised aviation policy that allowed more access to international carriers, perhaps this milestone would have been achieved many years earlier.

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Consumer-driven aviation policy spurs New Zealand tourism growth With the tourism sector rapidly emerging as a key pillar of New Zealand’s future economic growth agenda, its leadership under successive governments has recognised the importance of aviation in connecting it with the rest of the world and has implemented a liberalised aviation policy for over 30 years. The results of this policy have been overwhelmingly positive for New Zealand and its tourism industry. Tourism is an important economic contributor to many countries’ GDP. In New Zealand, tourism has outpaced national economic growth to overtake agriculture as the largest export industry in terms of foreign exchange earnings, accounting for NZ$10.6 billion (US$7.4 billion) in expenditure in 2017. In the year ending March 2017, tourism directly contributed NZ$14.7 billion (US$10.3 billion) to GDP, accounting for 5.9% of economic output and 8.4% of employment in New Zealand. 6

In the year ending April 2018, international visitor arrivals to New Zealand hit a record 3.8 million, growing 5% over last year. Much of this growth came from emerging markets like China, which saw passenger growth of 11% over this period. According to the Ministry of Business, Innovation and Employment’s 2018 tourism forecast, visitor arrivals to New Zealand will reach 5.1 million in 2024, equating to an average annual growth rate of 4.6%. International visitor spend is forecast to reach NZ$14.8 billion (US$10.4 billion) by that time – up 40% from

2017. China is forecast to be New Zealand’s largest international tourism market in terms of expenditure by 2024, with 800,000 visitors a year. While aviation policy sits alongside a range of government initiatives designed to improve tourism numbers, it is aviation policy that has driven tourism’s step change in New Zealand. Since 1985, New Zealand has set policy frameworks encouraging freer access for international airlines. (continued)

This policy has been updated over the years, making New Zealand one of the most liberal policy environments in the world for international air services today. The key pillar of this policy has been the progressive deregulation of Air Services Agreements (ASAs) that New Zealand holds with other countries, which more recently has come with a commitment to seek Open Skies agreements (with no capacity and route restrictions), except where it is not in the overall national interest. New Zealand now has over 40 agreements that could be classified as Open Skies. This liberalised aviation framework has attracted foreign airlines to operate on international routes to and from New Zealand, stimulating strong growth in international travel volumes, resulting in added choice and lower average airfares

for consumers. A decade ago, 19 airlines operated to New Zealand, carrying 2.4 million passengers. Ten years on, passengers have grown by over 50% to 3.7 million, while airlines operating to New Zealand have increased to 30. What is more interesting is that this growth has not come at the national flag carrier’s expense. Air New Zealand, which remains majority government owned, has performed well despite the significant increases in international capacity to and from New Zealand. Although it is unlikely to ever utilise the full set of liberalised ASAs available to it, Air New Zealand reported a healthy interim profit earlier this year and is on track for the second highest profit in its history. The Government’s pragmatic approach indicates that the airline’s sustainability is just one element of its aviation strategy – a strategy

that is successfully working to promote the broader national interest. Emirates has contributed to New Zealand’s tourism growth since 2003, growing progressively in line with consumer demand. Currently, Emirates operates a daily nonstop service to Auckland and a daily service to Christchurch via Sydney – both operated with Airbus A380 ‘superjumbo’ aircraft. A new Dubai-Denpasar-Auckland service commenced with a Boeing 777 aircraft this month and is significant in that it is the first time New Zealand will be connected to Indonesia with year-round daily air services. This connectivity link is thanks to a liberalised aviation environment allowing fifth freedom services between New Zealand and third countries.

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Q&A with the CEO of visitBerlin Burkhard Kieker has been CEO of visitBerlin since 2009. In this role, he is responsible for promoting Germany’s capital city globally in the tourism and convention sector, and for maintaining and developing the brand of Berlin.

Q: Tourism has been booming in Berlin for years. What are this year’s biggest challenges for Berlin’s tourism industry? A: Berlin is number three in tourism in Europe – just after London and Paris – when it comes to overnight stays. Concerning meetings and conventions we are in the top class worldwide. Berlin ranks in Champions League worldwide. So we have to maintain our comeback story – that means more growth in the fields of quality tourism. And we want to be part of the marvellous development of outbound tourism from Asia. That is definitely our focus.

Q: Last year, Air Berlin went bankrupt. What short-term effects on tourism have you noticed and are there still gaps which are ideally filled? A: Of course we noticed a sharp drop in passenger numbers for a few months due to the reduced capacity. However, I am delighted to see that gap in seating capacity is closing faster than expected. By summer we will be back on the growth path. This proves that Berlin is an interesting market for international airlines. Q: Compared to its European capital city peers, Berlin is underserved when it comes to flights to/from AsiaPacific and the Middle East. In fact, there will only be eight such destinations served in the 2018 summer season. Why is that? A: That is simply because the existing airports have not been built to fulfil a hub function. With the upcoming new BER hub opening in 2020, we are sure that the German federal government will negotiate for more traffic rights to serve Berlin from the Middle East and Asia as well as from other continents. If an international airline wants to fly to Berlin, it should be allowed to.

Q: What is the particular economic significance of tourists that arrive via long-haul flights?

Q: What would be your wishes for the new federal government with regard to aviation policy?

A: The German and European markets to Berlin are well developed and our field of growth is intercontinental traffic. Tourism and conventions account for nearly €12 billion of turnover in our city. The cultural hub Berlin with its theatres, operas and galleries make a living on international guests who tend to stay comparably longer and spend more. We are prepared for growth in that field.

A: I am quite sure that Berlin and the new BER airport will be recognised and developed as Germany’s third major hub for international air traffic, alongside Frankfurt and Munich. What I see is that the demand is definitely there and the market is big enough for everybody in Germany.

Q: What effects will the opening of the new Berlin Brandenburg airport have on the capital region?

Q: In your view, does strong foreign carrier presence in a market stimulate demand and “grow the tourism pie”, or does it simply redistribute existing passenger traffic within that market?​

A: The Berlin Brandenburg (BER) airport will launch a new period of growth for the city. With more long haul connections, Berlin will be particularly appealing to guests from Middle East and Asia. The opening of the new airport will also drive the growth of the city’s conventions business, since people coming from abroad for these meetings prefer to fly directly. Finally, our city will get the airport it deserves as an international metropolis and German capital.

A: Based on the number of international journeys taken in 2017, global tourism grew by more than 6% last year. Europe drove this growth. To sustain leadership and improve the ability to tap into outbound tourism from especially non-European markets, we in Berlin therefore need more flights, whether offered by German or international airlines. With more flights, the cake increases and that is good for everyone.

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They said it best... Open Sky brings you the best quotes from the aviation industry. “You hear more and more about protectionism and this can have very negative consequences on a global scale.” – Henrik Hololei, Director General for Mobility and Transport (DG MOVE) in the European Commission

Dr. Michael Kerkloh President and CEO, Munich Airport

“Europe has a world-class aerospace industry providing thousands of high-skilled jobs, with customers around the globe. If the Commission starts cracking down on our trade partners unfairly, it jeopardizes those trade links, putting jobs at risk.” – Jacqueline Foster, Member of the European Parliament for North West of England

“We are worried that some are trying to use the revision of Regulation 868 to advance a protectionist agenda.”

“Nobody abroad understands the absence of intercontinental flights to the German capital... I would like the Senate to make representations to the Federal Ministry of Transport in order to obtain traffic rights for Emirates and Etihad as compensation for Air Berlin. In my opinion, the Federal Ministry of Transport cannot continue to reject traffic rights for Emirates and Etihad in its own capital.” – Burkhard Kieker, CEO, visitBerlin “We expect that Lufthansa in Berlin either itself offers services to Asia or gives up its blockade in the traffic negotiations.” – Engelbert Lütke-Daldrup, CEO, Berlin Brandenburg Airport

Olivier Jankovec Director General, Airports Council International (Europe)

“American, Delta and United should not be allowed to create arbitrary standards for three state-owned airlines from the Middle East, which happen to be competitors, and not have those same standards applied to other state-owned airlines.” – JetBlue Airways, in a docket submission to the US Department of Transportation

“Allowing the European Commission to impose sanctions on non-EU airlines even before alleged anti-competitive practices are duly documented, assessed, and established sends a worrying signal to our international trading partners and could end up having far-reaching negative impacts on the connectivity of our regions and on consumers.”

“Sustained high alliance market shares on the busiest transatlantic routes and increased concentration at connecting alliance hubs highlights strike at the heart of claims that immunity delivers benefits to U.S. consumers. It highlights the reality that injecting competition on transatlantic routes depends critically on entry by smaller foreign carriers, which is opposed by U.S. carriers.” – Diana Moss, President, American Antitrust Institute

Fast Facts

Aircraft in fleet Destinations Revenue (Airline)*  Profit (Airline)* Fuel costs (Airline)* Passengers*     Cargo*                  Passenger seat factor*

*2017-18

266 160 US$25.2 billion US$762 million US$6.7 billion 58.5 million 2.6 million tonnes 77.5%

Employees (Airline)*     Financial auditor     First flight Average daily flights A380 fleet  Boeing fleet Average fleet age* New passenger routes (2018) Oslo

Boston Chicago Toronto Newark New York Columbus Washington, DC

Los Angeles

Lisbon

Beirut Amman

Medina Jeddah

*Suspended

Quito

Abuja Lagos Accra

Entebbe

Lusaka Harare

Basra Kuwait

Kochi Thiruvananthapuram

Phnom Penh Ho Chi Minh City Cebu Phuket Kuala Lumpur Singapore

Seychelles

Jakarta

Bali

Lilongwe Mauritius

Viracopos

Dubai

Ciudad del Este

Rio de Janeiro São Paulo

Johannesburg

Brisbane

Durban

Muscat Santiago

Buenos Aires

Cape Town

Route Map

Perth

Adelaide

June 2018

Passenger Routes Freighter Routes Passenger & Freighter Routes ---- Upcoming Passenger Route

8

Tokyo Osaka

Colombo

Maldives

Eldoret Nairobi

Dar es Salaam

Luanda

Mashhad

Djibouti

Beijing Yinchuan Seoul Peshawar Zhengzhou Islamabad Sialkot Shanghai Lahore Multan Delhi Karachi Dhaka Taipei Guangzhou Ahmedabad Hong Kong Kolkata Hanoi Mumbai Hyderabad Yangon Clark Manila Bangkok Chennai Bengaluru

Kabul

Dubai

Addis Ababa

Baghdad

Dammam Bahrain Riyadh *Doha

Larnaca

Khartoum

Ouagadougou

Abidjan

Tehran

Athens

Malta

Aguadilla

Conakry

Erbil

Moscow

Cairo

Dakar

Middle East Network

Tunis

Algiers

Casablanca

Dallas/Fort Worth Orlando Houston Fort Lauderdale Mexico City

St. Petersburg

Glasgow Edinburgh Copenhagen Newcastle Dublin Manchester Hamburg Amsterdam Birmingham Warsaw London MaastrichtDüsseldorf Brussels Liege Prague Luxembourg Frankfurt Paris Vienna Munich Budapest Geneva Zurich Zagreb Lyon Milan Venice Bologna Nice Zaragoza Rome Istanbul Barcelona Madrid

Seattle

San Francisco

Stockholm

62,356 PricewaterhouseCoopers (PwC) 25 October 1985 500 103 (on order 59) 163 (on order 200) 68 months (5.7 years) London Stansted, Santiago, Edinburgh

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