Monthly Archives: November 2013

AviaSG news overview

Avia Solutions Group, a WSE listed global provider of one-stop-shop
aviation business solutions, has announced about the recent acquisition of the
controlling interest in the Lithuania-based helicopter maintenance organization
Helisota. In the course of several takeover stages Avia Solutions Group will
gain 96.2% of the company’s shares, some of them through acquiring directly
from the company management and some – through transferring a number of newly
issued Avia Solutions Group securities. It is planned that the final stages of the acquisition will be completed
by the end of this year., an industry leader in supporting the aviation industry
with IT-based Supply Chain Optimisation solutions worldwide, has selected
Pentagon 2000SQLTM for integration with its own trading platform catered
specifically to the aircraft spare parts aftermarket. Responding to the rapid
growth and the most recent trends in the aviation industry, has
started its business process integration and added Pentagon 2000 Software as
its initial ERP partner., an IT company supporting the aviation industry with
IT-based Supply Chain Optimization solutions worldwide has signed an agreement
with the International Air Transport Association (IATA) in order to provide the
IATA Financial SIS platform to increase the efficiency of its aftermarket services.
The IATA Financial SIS platform is an electronic invoicing solution
facilitating the air transport industry’s billing and settlement activities by
optimizing and reducing the cost of back-office processes, unifying invoicing
standards and eliminating the need for paper documentation.

Baltic Ground Services (BGS), an international provider of ground
handling and into-plane fuelling services, has announced the decision to
appoint its long-standing Chief Production Manager Linas Geguzis as the new CEO
of Baltic Ground Services Poland. With the new leader in the forefront the
Poland-based company is planning to significantly expand the scope of its
products and services as well as extend the list of its clients by increasing
the number of flights served by 40% in 2014. Successfully operating since 2010,
today BGS serves Lufthansa, Aeroflot, Aer Lingus and other major carriers in
the Polish Warsaw, Katowice and Krakow airports.

FL Technics Jets, a global provider of tailor-made maintenance, repair
and overhaul services for business aviation, has become the first Authorised
Service Centre for Tronair‘s Ground Support Equipment in Eastern Europe, Russia
and the CIS. FL Technics Jets is also appointed as an official distributor of
Tronair‘s GSE products for the entire region.

Under the new partnership, FL Technics Jets will be providing
maintenance, repair and overhaul services for various taxiing, lifting, air
conditioning, de-icing, hydraulic power, fuelling and landing gear equipment as
well as other ground handling inventory. Additionally, FL Technics Jets will
promote and actively sell comprehensive Tronair‘s inventory in Eastern Europe
as well as Russia and the entire CIS.

FL Technics, a global provider of aircraft maintenance, repair and
overhaul services, and Transaero, the second largest air carrier in Russia, are
further developing their cooperation. The two companies have recently signed a
new agreement to install high-speed satellite Wi-Fi technology on Transaero’s
Boeing 737 Next Generation aircraft.

 According to the agreement, FL
Technics specialists have already modernized the in-flight entertainment system
in Transaero aircraft by installing new Row44 connectivity technologies. The
satellite-based solution allows higher Internet connectivity than the one
provided by ground-based systems. The installation of a powerful WiFi system
was conducted by FL Technics specialists at the company’s main technical base
in Vilnius, Lithuania. Transaero Airlines has
19 Boeing 737Next Generation aircraft in its fleet that will be equipped with
an in-flight Internet connectivity system.

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Aviation training news overview

Commercial airline pilots rely too much on automation in the cockpit and
are losing basic flying skills, warns Federal Aviation Administration. And
so-called “automation addiction,” endemic in the highly automated fight
cockpits of today’s high-tech commercial airlines, could pose safety risks,
experts say. “Pilots sometimes rely too much on automated systems,” says
the report, which was written by an outside panel of experts. And some pilots
“lack sufficient or in-depth knowledge and skills” to properly control their
plane’s trajectory, the report states.

The Middle East aviation sector will
imminently face a manpower shortage say experts, as 450,000 jobs open up with
Emirates, Etihad Airways, flydubai and Qatar Airways spearheading an aggressive
expansion drive as the order book at the Dubai Airshow crosses $196 billion.

FAA issued a final rule that will give airlines and training providers
five years to upgrade flight simulators and begin more comprehensive training
of pilots for stall and upset incidents as well as for crosswind and gust
events. European Aviation Safety Agency rulemaking officer Dean Dousi told the
conference that EASA will publish similar rules in the third quarter of 2016,
following the publication of a concept paper before year end. This will be
subject to public consultation in 2014, with resulting recommendations to be
made to the European Commission in 2015. The rulemaking process follows in the
wake of highly publicized accidents involving stalls within four months in
2009, including Colgan Air Flight 3407 near Buffalo,N.Y., and Air France Flight 447’s plunge into
the Atlantic Ocean.

An industry-led working group co-chaired by AOPA has released its final
report and recommendations for creating an integrated airman certification
system for pilot training, testing, and certification. The recommendations
focus on integrating the knowledge, skills, and risk management elements in
each task of the existing practical test standards into a single airman
certification standard used for both the knowledge and practical test. They
also propose ways to streamline and consolidate FAA handbooks and other guidance
materials to align with the new certification standards.

The Middle East’s dedicated training
event for the aviation industry is set to create debate with the challenging
theme ‘Breaking the Paradigms: Training the Gulf’s New Generation of Aviators,’
highlighting the shortage of pilots in the region. During the two day GATE
summit these pressures and their potential impact on pilot training are set to
be addressed in panel-led discussions on topics such as; ‘Regulatory Oversight
of Outsourced Training’ and ‘Hand Flying in Airline Operations – Who, Why and

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BAA news overview for November 2013

On October 28th through 31st Baltic Aviation Academyparticipated at EATS 2013 Symposium held in Berlin, Germany.  Every year symposium is getting bigger and
provides Baltic Aviation Academywith more business development opportunities and larger partner search base.
This year show had two main topic streams: pilot training, and a new stream
dedicated to cabin crew training. Show was attended by the total of 433
visitors from 42 countries and 59 airlines.

In the end of October, Baltic Aviation Academyreleased a newly developed management, organization and monitoring software
MOMook at EATS 2013 Symposium. Software is specifically tailored for the
aviation training organizations as well as airlines that need all the
operational aspects synchronized into one comprehensive system.  MOMook software received a lot of attention
at the show and Baltic Aviation Academydelegates returned to Vilniuswith a surprisingly large number of new contacts and therefore is very excited
to continue developing this unique product.

In November, Baltic Aviation Academy’s
Ab Initio pilot school started the last Commercial Pilot License (CPL) and
Private Pilot License (PPL) training groups for 2013. Throughout 2013 Ab Initio
School has expanded its training capabilities by purchasing two more Tecnam
2002 aircraft and a Flight Navigation Procedures Trainer. This August Baltic Aviation Academy’s
Ab Initio School released its first CPL graduates from Lithuania, Ukraine,Tajikistan and Holland. At the moment Ab
Initio Pilot School has more than 80 students taking various pilot training

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Amadeus once again tops the European R&D ranking in the travel and tourism industry

Amadeus, a leading technology partner for the global travel industry, is
once again on top of its sector’s ranking as one of the leading European
companies in Research & Development investment, as confirmed by the 2013 EU
Industrial R&D Investment Scorecard.

This report, published on an annual basis by the European Commission
(EC), examines the largest 1,000 European companies, and the world’s 2,000
largest companies investing in R&D during 2012, and ranks them according to
the total amount invested.

Amadeus invested €440.3 million in 2012, a 26.7% increase
versus 2011, which represented 15.1% of the company’s total revenues. This
level of investment positions Amadeus as the leader of both the European and
the Global rankings in the travel and tourism industry category. Furthermore,
Amadeus is the only IT travel industry company included in the global 2,000 companies
ranking published by the EC.

Herve Couturier, Head of R&D at Amadeus says: “R&D investment is
key to innovation, and innovation is part of our DNA. We are very proud that,
once again, the European Commission rankings confirm our commitment to keep on investing
in R&D in order to continue to expand and upgrade our portfolio. This is
reflected by the 26.7% R&D growth versus last year’s EU Scorecard and the
2.5 percentage points increase as a percentage of our revenues”.

He continues: “Amadeus’ track record in innovation is a key driver for
both the growth of the company and its current leading position in research and
development investment more specifically. The 2013 EU Industrial R&D
Investment Scorecard  results further
confirm our continued commitment to remain at the forefront of innovation”.

Amadeus has sixteen R&D centres around the world (Nice, London, Sydney, Antwerp, Aachen, Frankfurt,Boston, Miami, Toronto, Strasbourg, Tucson, Bangalore, Bogota, Warsaw, Istanbul and Bangkok),
with a team of 5,000 people. Also, over the years the company has established
close collaboration with research teams in leading institutes throughout the
world, such as the Massachusetts Institute of Technology (MIT) in Boston (on
revenue management mathematics), ETH -Swiss Federal Institute of Technology-in
Zurich (on high performance systems engineering), and Institute National
Polytechnique (INP) in Grenoble (on airline schedule & operations).

 In recent years Amadeus’ R&D
efforts have been particularly focused on:

 –       Extremely high performance
transaction processing under stringent system availability and dependability

–        Information mining from
very large data-bases;

–        Super-responsive travel
search engines;

–        Multi-channel customer
servicing applications (agent desktop, web, kiosk, mobile, tablets);

–        Pioneering the use of
open systems.

 Examples of the impact this has
had on innovation in Amadeus product and services in recent years include:

 –        In 2012, Amadeus successfully continued
to grow its Airline IT portfolio, into Revenue Accounting: British Airways has
become the first airline to sign for Amadeus’ new Passenger Revenue Accounting
solution and is scheduled to migrate to the new solution in early 2014. This
next generation passenger revenue accounting solution, built using modern
technology and embracing the latest industry standards, enables real-time
revenue monitoring for faster, more accurate revenue decisions.

 –        Amadeus also made inroads with Ground
Handling Companies thanks to Altéa DCS for Ground Handlers, a community
platform developed by working closely with ground handlers. Today 33 ground
handling companies use our solution.

 –        To boost the sale of rail products and
ease rail operations, Amadeus has been cooperating closely with large European
rail providers and major Travel Management Companies to create Amadeus Total
Rail. The solution enables railways to manage operations and sell seats across
multiple sales channels and allows travel sellers access to book rail and air
services side-by-side within the same solution. The offering includes Amadeus
Global Rail Sales Platform, which is the first rail GDS on offer, and Amadeus
Rail Operations Engine, which allows railway companies to manage schedules,
inventory, fares and pricing.

 –        In the online travel flight search
area, Amadeus delivered an industry first solution making flight search more
relevant and simpler for travellers with Amadeus Featured Results™. This
solution instantly delivers the four most relevant bookable travel options
available -fastest, cheapest, most popular and sponsored.

 –        Also in 2012, Amadeus signed a global
partnership agreement with Akamai, the leading cloud platform for helping
enterprises provide secure, high-performing user experiences. This will help
improve the performance of all web-based applications used by Amadeus and its
customers, including airline e-Commerce websites and Amadeus’ own suite of
booking tools. Airlines, travel agencies and TMCs will all benefit from
improvement in online responses of up to five times previous speeds, leading to
increased revenues and a cutting-edge user experience.

 –        Amadeus will be the first IT provider
to the airline industry which has most of its systems on open source software.
In 2012, Amadeus published ‘Open for business’, authored by leading technology
expert Professor Jim Norton. The report made the case for the travel industry
to embrace open source software in order to benefit from greater innovation,
respond faster to industry change and reduce costs, whilst freeing the industry
from its reliance on proprietary software to provide greater competitive
advantage. Leading innovations online, including Amadeus e-Retail, Amadeus Dynamic
Website Manager and Amadeus Extreme Search have been built with extensive use
of open source components in a way that would not be possible using legacy
components. Amadeus ARIA™ Templates – the framework upon which Amadeus IT
Group’s web solutions are based – was recently made open source, allowing third
party developers to use it without charge.

 –        In the Hospitality area, Amadeus has
continued the development of the Amadeus Hotel Platform, a solution for hotel
chains which combines central reservation, property management and global
distribution systems into one fully integrated platform.

 –        The online corporate travel booking
tool, Amadeus e-Travel Management (AeTM), has undergone a completely new
workflow redesign, streamlining the booking process itself, making it easier
and faster to search, book, review and approve. We also introduced a mobile
booking app, Amadeus e-Travel Management Mobile.
This new tool allows travellers to make new air and rail bookings via their
mobile devices including iPhone and Android, ensuring efficiency and continuity
of service for travellers on the road.

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Manas International Airport OJSC, Nayak Aircraft Service GmbH & Co sign Memorandum of Cooperation

An agreement on the experience exchange in the field of aircraft
maintenance, as well as human resource management was reached during a meeting
in Frankfurt, Germany,
organized by the leadership of Manas International Airportand Nayak Aircraft Service.

One should note that Nayak Aircraft Service is a well-known European
independent provider of maintenance and repair of aircraft, with its network of
line stations throughout Europe, as well as in Russia and the CIS.

According to Dair Tokobaev, Vice-President, Manas International Airport,
the company having more than 35 years of experience in repair, including
capital repairs, planned inspections for any type of aircraft may also provide its
services for Manas International Airportin the future.

“As regards our partner airlines, the cooperation and further engagement
of Nayak Aircraft Service into the Manas International Airportis of paramount importance. Currently, we provide maintenance for a limited
range of airliners, while attracting Nayak Aircraft Service, it may be possible
to organize not only linear, but also basic maintenance of Boeings, Airbuses
and other modern types of aircraft”, Mr. Tokobayev said.

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Transaero launches Moscow – Kokshetau flight

On December 14, 2013, the Transaero Airlines, Russia,
will start operating a new regular flight from Moscow,Russia, to Kokshetau, Kazakhstan.
The flights will be operated from the Moscow’s Vnukovo International Airporttwice a week, on Tuesdays and Saturdays.

Departure of the flight #UN-223 from Moscow is at 00:30, arrival in Kokshetau is at
05:00. Departure of the return flight #UN-224 from Kokshetau is at 06:20, arrival
in Moscow is at
07:00. Time is local for all airports. The flight is operated by Boeing-737-700.

Kokshetau, administrative center of Akmola Region,Kazakhstan, will become the
eighth destination of Transaero’s flights to Kazakhstan. Nowadays, the Airline’s
direct flights also connect Moscow with Astana,
Almaty, Aktau, Atyrau, Karaganda,
Kostanai, and Shymkent.

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Manas International Airport, Chisinau International Airport join their efforts to develop transit air routes

An appropriate agreement was reached in the framework of the bilateral Cooperation
Agreements signed by the airports’ leadership in Chisinau, Moldova,
on November 23, 2013.

According to Dair Tokobaev, Vice President on Investment and Economic Development,
Manas International Airport OJSC, the signed agreement should help coordinating
the efforts on the joint search and attraction of air carriers to develop
transit air traffic.

The airports intend to create favourable conditions for partners,
encourage airlines to launch flights to new destinations and operate transit
flights through the international airports in Bishkek and Chisinau.

In particular, they should provide discounts for services for airlines,
allowing them, in turn, offer competitive prices on air tickets to passengers. “The
handling of this direction will allow the nationals of Kyrgyzstan to fly to
Europe via the airport in Chisinau on more favourable terms, and the nationals of
Moldova will be able to fly to Asia through the Manas International Airport”, Mr.
Tokobayev added.

In turn, the Avia Invest Press Service of the Chisinau International Airport notes that if an airline
has to pay EUR 28.51 per passenger per round-trip air ticket when flying on Airbus
A320 aircraft with its 75 percent utilization, then the stimulation policy
implies a reduction of this figure down to EUR 11.48. Thanks to this policy,  the airport in Chisinau succeeded to attract
operating such airlines, as Wizz Air and flydubai, and launch such new destinations,
as Carpat Air and Meridiana Fly.


Manas International Airport has a favorable geographical
position at the crossroads of trade routes from Asia to Europe.
To date, 16 airlines operate their scheduled flights including four domestic
ones and 12 international ones. For Jan-Sep 2013, the Manas International Airport has served
1,752,355 passengers, or by 26.3 percent more, as compared to same period last
year. In November 2013, one registered two millionth passenger at Manas International Airport.

Chisinau International Airport is the main air gateway of theRepublic of Moldova and, for the 6th consecutive
year, it has been winning the title in the nomination “The Fastest Growing Airport
in the CIS in 2012”.
To date,  19 airlines operate flights to
29 destinations worldwide from the Chisinau International Airport.
The partners include 15 foreign airlines and four national air carriers. In Jan-Sep
2013, the total passenger air traffic has reached 1,005,473 people, which is by
5.22 percent more, as compared to the same period last year.

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Managing Director of “Samruk-Kazyna JSC questions appropriateness of Air Astana’s litigation with customers

Nurzhan Baydauletov, Managing Director, Samruk-Kazyna JSC, conducted a
briefing devoted to activities of the Kazakhstan’s flag air carrier, Air

“The Air Company does not find the strength to negotiate out of court –
it’s very bad. It would be better to agree and understand prospects.
Personally, I do not welcome litigation”, said Nurjan Baidauletov,  Managing Director, Samruk-Kazyna JSC.

According to him, the cause of litigation involving the national air carrier
is concluded in the population’s increased legal literacy.

 “People sue with Air Astana and I
do not see anything wrong with it”, Mr. Baidauletov says. “If my luggage is
lost, or I do not accept compensation that I get paid for it or, because of
late, I have major problems, why not sue?”,  the Managing Director of Samruk-Kazyna JSC asked
almost rhetorically.

Recall, last month, Kazakh tourists could not fly from Malaysia to
their homeland during two days because of the Air Astana’s broken plane. One of
the passengers, Olga Agapova, wrote on her page on the social network that the
aircraft’s  right engine caught fire. The
national air carrier requires this passenger of the Kuala Lumpur – Almaty flight to refute the
information, which she published in social networks, as well as voiced in an

As Olga says, passengers did not want to interfere with the Airline when
they returned home.

“But the leadership of Air Astana behaved very inappropriately, taking
the most unpopular decision – instead of admitting they were wrong and had shortcomings,
apologize to passengers and to improve their work, they began to pressure and
threaten the court. Huge numbers of people were  angered with this approach to problem solving
with clients. All people faced with airline service and spent their days in
airports. What I have described, for many it was clear and familiar. The fact
is that everything that we felt seen and described, took place to be actually.
Furthermore, life itself has put everything in its place – after our flight, as
you know, there were two similar cases, both with the emergency landing, and this
was reported by MOE (Ministry On Emergencies) summaries. By the way, I find out
about the technical problems, delays and other “inconveniences” for passengers before
Air Astana publishes this information, because people write to me directly on
Facebook. And usually what they tell is very different from the Air Company’s official
statements. The same thing, however, happened in our case”, the  passenger insists.

At the same time, the Managing Director of Samruk-Kazyna JSC stressed
that the Fund would seek to improve the level of service by Air Astana.

“Since June 1, 2013, we have introduced such a practice: on some flights
operated by the Airline so-called linear coaching consultants began to work.
They also wear uniforms of flight attendants, but they are not included in the
team, as their duty is to oversee the work of the crew, assistance, a sample
survey of passengers and evaluation of all parameters including food,
cleanliness in the cockpits, and on-board service. These consultants are among
the most experienced flight attendants, they have very serious selection and
work continuously for more than 10 days, changing one flight to another,
regardless of whether it is domestic or international one. Their mission is to
look for new ways to give recommendations to improve the service. Nowadays, they
are the “eyes and ears” of our company. The Airline needs to permanently improve
its service, because it works according to the best world standards”, Mr. Baidauletov

According to Mrs. Agapova, she never had complaints, as regards on-board

“I have personally never had a claim to the service on board. I do not
presume whether it is better or worse now. I have so many requests to the Public
Relations Department! If Mrs. Tormysheva, Vice President of Public Relations, who
is responsible for the people’s love for Airline allows such forms of talks and
tone to passengers, what else can you say? I would say that the opposition –
passengers against Air Astana – was provoked and inflated by the PR Department
of this Air Company, which showed its unprofessional attitude towards the customers
to the entire country, caused the biggest damage of reputation caused to the
Airline itself!”, Mrs. Agapova believes.

According to her, Air Astana has two ways out from the current

“Either the Airline agrees to come to a peace solution, or it begins to
plead with passengers. I’m ready to both options. The only thing is that I see the
first option to be more constructive and beneficial for the image of the
national air carrier, but also the most emotionally challenging for Air Astana
because it has been always difficult to admit mistakes and it requires a
certain courage”, Mrs. Agapova motivates.

Mr. Baidauletov partially shares the opinion expressed by Mrs. Agapova.

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Air Astana has paid nearly KZT 40 billion to the state budget for 11 years

“When forming the Air Company, the Government of Kazakhstan invested US $
8.5 million. During the period from 2001 to 2012, the Airline has paid nearly KZT
40 billion to the state budget in the form of taxes and other obligatory
payments”, Mr. Baidauletov said.

He also noted that Samruk-Kazyna received about KZT 7 billion of dividends
from the air company’s activities, reported.

“We started paying dividends from the Air Company’s activities in 2006
and, by now, Samruk-Kazyna has already received about KZT 7 billion from the Airline.
Thus, having paid back, we can say that Air Astana has completely recovered the
costs of its formation and, at present, it brings profit to the state”, the
Managing Director of Samruk-Kazyna JSC informed.

By the way, as a result of 2013, the Air Astana’s revenues will amount
to KZT 143.8 billion and will be increased by 10% in comparison with 2012.

“In 2013, the Air Company’s profit is projected at KZT 7.5 billion vs KZT
9.1 billion in 2012. Decline is by 18% due to the fact that one has added the cost
of purchased aircraft plus one conducts capitalization”, Mr. Baydauletov said.

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Air Astana’s net profit to be reduced down to KZT 7.5 billion this year

The Air Astana’s net profit for this year will be reduced down to KZT 7.5
billion, reports citing the press service of Samruk-Kazyna JSC.

“In 2013, the net profit is expected to reach KZT 7.5 billion”, a press
release said. “Thus, in 2012, the net income was slightly more than KZT 9
billion. However, taking into account the forecast for this year, we see a
general increase in revenues, but the net profit will be reduced. This is
primarily due to the fact that one increased expenses on acquiring new aircraft”,
Nurjan Baidauletov,  Managing Director,  Samruk-Kazyna JSC, said at a press conference
in Astana, Kazakhstan.

Meanwhile, he said, the Airline’s revenues will amount to almost KZT 144
billion in 2013, and that’s by 10 percent more than it was last year. One also
reports that, in 2013, Air Astana has acquired six aircraft.

The Air Astana’s air fleet has grown from three aircraft in 2002 to 29 ones
(of these, 10 are owned by the Air Company) in 2013. There are plans that, by
2020, the air fleet will come to over 40 aircraft, with nearly half of them
will be owned by the Air Company”, stated in the materials distributed during
the press conference.

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