46th Issue Quarter 1, 2013
SP Milestones: Achieving Success, Year after Year
The Strategic Partnerships program is a platform for aviation-solution providers to build as well as strengthen relationships with key industry stakeholders. Through their participation in various IATA work groups, Strategic Partners gain a unique insight into airlines’ priorities. They also benefit from the opportunity to be recognized for working with IATA in serving the air transport industry.
The success of the IATA Strategic Partnerships program is founded on the passion and commitment of its Strategic Partners, many of whom are celebrating milestone anniversaries in 2013.
Abacus International Pte. Ltd.
Cosmo Oil Co., Ltd.
Fujitsu Frontech Limited
L-3 Security and Detection Systems
Securitas Transport Aviation Security
Bartsch International GmbH
Advanced Composite Structures, LLC
AMS Systems Engineering Ltd.
Hadid International Services
MULAG Fahrzeugwerk Heinz Wössner GmbH u. Co. KG
TCR International NV
Vestergaard Company A/S
AeroMASH-Aviation Security JSC
Argus Media Ltd.
British Telecommunications PLC
Cavotec Fladung GmbH
Conidia Bioscience Ltd.
Descartes Systems Group
ECHA Microbiology Ltd.
Emirates National Factory for Plastic Industries LLC (United Security)
Finnish Security Projects Ltd.
GlobeFuel Systems & Services GmbH
Hitit Computer Services
International Lease Finance Corporation (ILFC)
JSC Gazprom Neft-Aero
Kuwait Petroleum Corporation
Mitsubishi Aircraft Corporation
PTT Public Company Limited
SK Energy Co., Ltd.
For more information on these Strategic Partners, please consult the Directory of Strategic Partners.
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2013 AGM Strategic Partners Cocktail Invitation
Mark your calendar for the Strategic Partners cocktail reception on 2 June 2013, from 17:00 to 18:30, at the Annual General Meeting (AGM) in Cape Town, South Africa. Stay tuned for more information.
New IATA Website: Update Your SP Links
Please ensure that your company links to IATA webpages are up-to-date, as the IATA website has been changed.
For more information, please contact us.
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CAE and China Southern Airlines: A Partnership for Growing Pilots
The largest projected growth for the airline industry is in the Asia Pacific region, particularly China. One of the air carriers leading the growth in China is China Southern Airlines. For over 10 years, China Southern and CAE have been partners. Over this period, China Southern has increasingly leveraged the breadth of capabilities offered by CAE: a comprehensive suite of advanced full-flight simulators and other training tools, type-rating training for captains and first officers, and ab initio training for aspiring cadets.
Together, China Southern and CAE are addressing pilot needs with the industry’s largest seamless cadet-to-captain training continuum. Ten years ago, the companies formed a joint venture—the ZhuHai Flight Training Center (ZFTC). Today, ZFTC is the largest independent commercial aviation type-rating training facility in China, with a present capacity of 24 full-flight simulator (FFS) bays and plans to expand to 40 bays.
In addition to China Southern crews, ZFTC provides training for pilots from other airlines for Airbus, Boeing, and Embraer aircraft types. Recently, a Sikorsky S-76 helicopter simulator was deployed at ZFTC, supporting the oil and gas industry in the region.
China Southern and CAE formed a new partnership for the training of airline pilots in 2010 when they established a joint venture to train cadets at the China Southern Western Australian Flying College in Perth. CSWAFC is part of the world’s largest network of ab initio flight schools, CAE Oxford Aviation Academy. Current capacity in Perth alone is about 300 students. Following initial flight training in Australia, graduates transition to ZFTC in China to earn their type rating.
Director, Marketing and Strategy
Civil Simulation Products, Training and Services
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Envirotainer and DHL: A Historic Collaboration
Recent effective business partnerships have resulted in companies with products and services pioneering new industries and business models. As we move toward a more interconnected society, competitive advantage depends not only on what you can do, but also who you work with. Delivering patient safety requires active engagement with partners to fulfill supply-chain integrity. DHL seeks partners who can support and enable its strategies on a global, regional, and local level. Over their 10-year relationship, Envirotainer and DHL’s special chemistry has forged the way for the healthcare industry and active cold-chain management.
The relationship ignited in 2001. At the time, DHL was launching its sector strategy and wanted to align with leading providers of cold-chain transport to the pharma industry. This was a challenging task back then, when only a handful of airlines had defined cold-chain products and none among US carriers. Together, Envirotainer and DHL collaborated on identifying industry needs and demands, carrying out pilot projects, and supporting the solution by developing processes that would benefit both enterprises.
The key catalysts for the partnership were the customers. They expressed a need to move 2—8°C products then emerging on the market that required a high degree of temperature-control handling.
It took a cohesive and aligned approach to make an impact on the industry. Envirotainer and DHL took basic steps forward that evolved into sophisticated cold-chain solution offerings.
The future prospects for ongoing Envirotainer and DHL collaboration are very bright indeed. As market leaders in cold-chain logistics, they share a commitment to product integrity. The partnership facilitates the implementation of well-planned, secure, and compliant cold-chain logistics, enabling clients to reach patients worldwide.
Strategic Marketing & Communications Manager, LifeConEx, LLC
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GlobaleDocs Ltd.: How Documentation Management Improved IATA Mindset at Israir Airlines
GlobaleDocs and Israir Airlines have collaborated to implement the next generation of digital documentation-management solutions. GlobaleDocs is an innovative leader in this field. Israir Airlines is one of Israel’s three major commercial airlines.
Following past IOSA audits with unsatisfactory results, Israir decided to implement GlobaleDocs’ documentation-management system, then a standalone software. Through that process, GlobaleDocs made a strategic decision, rebuilding the system as a cloud-based service. The new eDocs-Aero™ is now a comprehensive solution available to any airline, anywhere.
Since then, Israir has gone through two IOSA cycles. In addition to seeing a dramatic improvement in operational standards, it has received an “Outstanding Audit Report” commendation, for which it credited the GlobaleDocs system. And the solution went beyond improving the airline’s IOSA rating. With the implementation of the new system, all of Israir’s manuals, forms, licenses, and training materials are accessible in one centralized location and constantly updated, streamlining the airline’s daily operations.
Having gained operational experience with an IATA member airline, GlobaleDocs can now offer medium and small airlines an affordable yet comprehensive cloud-based solution.
The GlobaleDocs and Israir cooperation is ongoing, providing mutual benefits in developing and implementing broader operational solutions. Israir will implement the new eDocs-QTM later in 2013, and GlobaleDocs will leverage that experience for other airlines.
Eyal (Allan) Weiss
EVP Business Development
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IBM and Qantas: Next Generation Check-in
Qantas, Australia’s largest domestic airline, wanted to reduce check-in lines, focusing on customer service and convenience, especially for premium frequent flyers. With a vision of creating a next-generation airport, Qantas sought IBM’s help to automate as much of the pre-departure process as possible.
With more than 50 destinations across the country, Qantas is transforming the pre-departure process in a number of ways. The airline is automating its check-in, baggage-drop, and boarding procedure using smart-card RFID technology embedded in its frequent-flyer Q Cards and Q Bag Tags. Replacing paper baggage tags, the Q Bag Tag provides insight on frequent flyers’ bags traced throughout the journey. This technology aims to reduce the number of lost bags and improve passenger satisfaction.
The airline is also using kiosks and baggage-handling technology for all flyers. Real-time information and analysis help provide the appropriate service to each customer. For example, while Qantas collects additional revenue for excess baggage weight, parents traveling with children are automatically given additional weight allowances, as are high-value passengers. The result is less waiting in line, better service, and greater recognition for customers’ continued loyalty.
Results have been promising. The check-in times have been reduced by 75% for premium customers and 50—60% for non-premium customers. The throughput in the departure concourse has improved by almost 100%, nearly eliminating line-ups. These new, improved, and differentiated products are helping to leverage and reinforce frequent-flyer loyalty.
Brian E. O’Rourke
IBM Global Airlines Leader
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Kimoha Entrepreneurs Ltd.: Supplying Printed Passenger- and Baggage-handling Items
Mishandled and lost baggage is an ongoing problem in the aviation industry. In addition to losses totaling some billion dollars a year, there is the fallout from unsatisfied passengers when their baggage is delayed or lost.
The baggage journey is a very complex process influenced by distributed control systems, baggage-handling systems, and the media—baggage tags—used to carry the required bar code for the sortation process.
Kimoha recognized the importance of high-quality media to provide the required bar-code readability and tag durability during the bag’s entire journey. As a result, the company developed several baggage-tag materials, together with our raw-material manufacturers, which meet the industry’s high standards.
A very specific quality-control procedure for all our finished products containing test prints, tear-resistance tests, as well as many other process-relevant tests ensures that our products operate smoothly.
As an active member of IATA’s CUSS working group, Kimoha contributes to providing and maintaining the standards for these high-quality baggage tags. By reducing the volume of mishandled and lost baggage, read and sortation rates at airports are significantly improved.
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Navitaire: Wheels-Up Revenue Innovation Empowers Clients to Know More, Faster
Each month, revenue-accounting leaders strive to close their books with speed and accuracy. Although this sounds simple, the time lag for sales information—and even more importantly, revenue recognition of lift data—presents a significant barrier to accomplishing this goal. Many carriers wait several days to receive, process, and post sales and lift data through their revenue-accounting systems.
Navitaire has offered airline revenue-accounting solutions for over 20 years, together with advanced airline systems for reservations, travel commerce, and revenue management.
Since its 2005 launch, Navitaire’s SkyLedger revenue-accounting system has provided clients with the unique capability to post sales rapidly and determine unearned revenues by using near real-time feeds of sales transactions.
SkyLedger offers a new, powerful feature to address lag time for earned revenue data. This innovative feature, called Wheels-Up Revenue, provides near real-time lift accounting to track earned revenue upon flight closure. Launched last September, Wheels-Up Revenue has already processed millions of near real-time flight segments, enabling SkyLedger clients to recognize earned revenue more quickly.
Revenue-accounting leaders measure their success based on speed, accuracy, and precision. Using Wheels-Up Revenue, multiple SkyLedger clients have made important advances in each of these areas. The feature helps them achieve the following:
- Close month-end (ME) books days earlier than before
- Significantly reduce uncategorized revenues, resulting in more accurate ME revenue reporting
- Reduce manual research and intervention associated with missing or late closing flights
Clients also credit the SkyLedger and Wheels-Up feature with supporting their success in two more ways. It offers improved visibility into revenue and liabilities to detect issues more quickly and close books with greater confidence. Moreover, they can view graphical charts showing earned and unearned revenue growth during the day using SkyLedger’s revenue-accounting Dashboard.
By having access to accurate data even faster than before, finance leaders can continue to heighten performance and help bring accounting to the forefront of innovation.
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Simplifying the Business New Distribution Capability (NDC) Seeks Collaboration from the Entire Air Value Chain
We have seen the airline business model change dramatically, as airlines have introduced ancillary products and services. Every airline has a different model, based on the type and age of aircraft; the size of the airport where it operates; the level of service on board; the number of cabins; the quality of the seats, meals, and entertainment; the on-time performance; the onward connectivity with partner airlines; the loyalty program; and so on. In support of their business models, airlines are investing billions of dollars to improve their offerings. Yet the indirect channel—travel agents via global distribution system (GDS)—is still unable to display many of the products being offered by airlines.
Furthermore, customers expect to be recognized and valued when they shop online. However, this is not possible using the indirect channel, as the airline does not know who the customer is until after the offer has been accepted.
NDC capability is based on a messaging standard that will provide customers with a consistent shopping experience across distribution channels. By using modern Internet-type technologies, in NDC, the airlines will be able to propose specific travel solutions based on real-time information. Access to the full range of airline products will also be available. The expectation is to improve upon the limited services currently proposed through the indirect channel. The offers from different airlines are likely to be aggregated to form a comprehensive set of options—and possibly used in comparison with the current GDS-based offers. It is quite likely that this overall comparison will be provided by the GDSs as they develop.
IATA encourages and welcomes all industry stakeholders to participate in the NDC working group and contribute to the development of NDC standards. Should you wish to participate in one of our work groups, please register here.
To learn more about IATA’s industry initiatives, visit Simplifying the Business.
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Featured Event: IATA’s Ops Conference
Mike O’Brien, IATA’s Ops Conference Convener, invites Strategic Partners involved in safety, security, operations, and infrastructure to attend the 2013 Ops Conference, to be held in Vienna from 15 to 17 April.
IATA policies concerning safety, security, operations, and infrastructure are not developed in isolation. Consisting of 20 senior airline-operations representatives, the IATA Operations Committee (OPC) meets twice a year to advise IATA on the practical development of such policies to meet airline needs for safe, secure, and efficient operations.
Once a year, the OPC meeting is expanded to provide a forum for all members, along with government and industry representatives, to offer IATA further guidance on strategic direction. This annual event—the Ops Conference—will be convened from 15 to 17 April 2013 in Vienna.
While covering global airline issues, the event will also have a regional emphasis. Attendance is open to all, and Strategic Partners benefit from reduced registration fees. Sponsorship opportunities are also available.
For full details on the Ops Conference, visit IATA Events.
To discuss sponsorship opportunities, contact Michael Huntington.
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New Strategic Partners
Since 1990, IATA Strategic Partners have been contributing to IATA and the air transport industry through their involvement in the Strategic Partnerships program. We are happy to introduce the following new Strategic Partners.
Access the company websites directly by clicking on their logos.
||Acorn Petroleum PLC
||A J Walter Aviation Limited
||Azzurra Gound Handling Services Ltd.
||EMG Marketing Godo Kaisha
||Prolog Development Center A/S
||Special Computer Programs Company Limited -
||Transfer Baggage Solutions Ltd.
For a complete list of Strategic Partners, and to learn more about what they offer, please visit our online directory.
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This issue is also available on our website.