DUBAI: Worldwide IT spending is projected to total $4.1 trillion in 2021, an increase of 8.4% from 2020, according to the latest forecast by Gartner, Inc., the world’s leading IT research and advisory company.
The source of funds for new digital business initiatives will more frequently come from business departments outside IT and charged as a cost of revenue or cost of goods sold (COGS).
“IT no longer just supports corporate operations as it traditionally has, but is fully participating in business value delivery,” said John-David Lovelock, distinguished research vice president at Gartner. “Not only does this shift IT from a back-office role to the front of business, but it also changes the source of funding from an overhead expense that is maintained, monitored and sometimes cut, to the thing that drives revenue.”
All IT spending segments are forecast to have positive growth through 2022 (see Table 1). The highest growth will come from devices (14%) and enterprise software (10.8%) as organizations shift their focus to providing a more comfortable, innovative and productive environment for their workforce.
Table 1. Worldwide IT Spending Forecast (Millions of U.S. Dollars)
| 2020 Spending | 2020 Growth (%) | 2021 Spending | 2021 Growth (%) | 2022 Spending | 2022 Growth (%) | |
| Data Center Systems | 219,940 | 2.3 | 236,806 | 7.7 | 247,513 | 4.5 |
| Enterprise Software | 466,647 | -2.1 | 516,872 | 10.8 | 571,725 | 10.6 |
| Devices | 663,223 | -6.9 | 755,798 | 14.0 | 778,949 | 3.1 |
| IT Services | 1,021,187 | -1.8 | 1,112,626 | 9.0 | 1,193,461 | 7.3 |
| Communications Services | 1,386,471 | -0.7 | 1,450,444 | 4.6 | 1,504,743 | 3.7 |
| Overall IT | 3,757,468 | -2.2 | 4,072,547 | 8.4 | 4,296,391 | 5.5 |
Source: Gartner (April 2021)
As one example, the increased focus on the employee experience and well-being are propelling technology investments forward in areas such as social software and collaboration platforms and human capital management (HCM) software.
Although optimization and cost savings efforts won’t disappear simply because there’s more economic certainty in 2021, the focus for CIOs through the remainder of the year will be completing the digital business plans that are aimed at enhancing, extending and transforming the company’s value proposition.
“Last year, IT spending took the form of a ‘knee jerk’ reaction to enable a remote workforce in a matter of weeks. As hybrid work takes hold, CIOs will focus on spending that enables innovation, not just task completion,” said Lovelock.
Recovery across countries, vertical industries and IT segments still varies significantly, prompting a K-shape economic recovery. From an industry perspective, banking and securities and insurance spending will closely resemble pre-pandemic levels as early as 2021, while retail and transportation won’t see the same recovery until closer to 2023.
Regionally, Latin America is expected to recover in 2024, while Greater China has already surpassed 2019 IT spending levels. North America and Western Europe are both expected to recover in late 2021.
Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of sales by thousands of vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.
DUBAI: A total of 62 countries will be represented on the exhibition floor this year at the Arabian Travel Market (ATM) 2021, which takes place in-person at the Dubai World Trade Centre (DWTC) on Sunday 16 to Wednesday 19 May.
Now on its 28th Year, the region’s largest travel and tourism showcase has attracted key exhibitors from inbound and outbound markets such as the UAE, Saudi Arabia, Jordan, UK, China, Germany, Russia, Greece, Egypt, Cyprus, Indonesia, Malaysia, Singapore, the Maldives, the Philippines, Thailand and the US.
“This is an impressive response from travel and tourism organizations across all travel sectors, given the various travel restrictions in place around the world, and provides a major boost for the travel industry in the Middle East,” commented Danielle Curtis, Exhibition Director Middle East, Arabian Travel Market.
Many destinations participating in ATM this year, will be hoping to attract GCC visitors in the second half of this year. Countries such as the Maldives for example, will have a significant presence at ATM, as well as perennial favorites such as Malaysia and Thailand, Germany, Greece, Italy and Switzerland.
“The Maldives has done exceptionally well in 2021 so far, welcoming over 200,000 visitors in the first two months of the year. It is one of the top destinations for UAE travellers and to cope with the increased demand, in March Emirates announced it was increasing its services over the Easter holidays, offering customers 28 weekly flights to Male, up from the scheduled 24 weekly flights,” added Curtis.
ATM 2021 is spread across nine halls. Consistent with the existing density restrictions and social distancing guidelines and regulations, there will be 11,000 people in the halls at any given time. The theme of this year’s show is ‘A new dawn for travel and tourism’ and the spotlight will be focused on the very latest ‘COVID’ news from around the world – vaccine rollouts, the current state of the industry and more importantly, what the future holds.
Staying with the international flavor, overall, ATM 2021 features 67 conference sessions with over 145 local, regional and international speakers. Onsite, there is a Global Stage which will include a hotel industry summit, dedicated buyer forums for Saudi Arabia and China, an International Tourism & Investment Conference (ITIC), as well as an aviation panel, and a special session on Gulf-Israeli ties.
Other features this year will include Travel Forward at ATM, which has world-class technology experts, providing industry-leading insights about the latest technologies and trends that will undoubtedly shape the future of travel and tourism.
ATM 2021 will once again play an integral role in Arabian Travel Week, which will feature exhibitions, conferences, breakfast briefings, awards, product launches and networking events.
This year the introduction of a new hybrid format will mean a virtual ATM running a week later to complement and reach a wider audience than ever before. ATM Virtual, which made its debut last year, proved to be a resounding success attracting 12,000 online attendees from 140 countries.
“This is now an integral part of the ATM offering. Not every industry professional from around the world, can attend in-person every year, particularly this year with travel restrictions changing rapidly around the globe,” said Curtis.
Dubai is one of the safest cities in the world to visit with a wide range of precautionary measures in place to ensure the safety of tourists at every stage and touchpoint of their travel journey, from arrival to departure. Over 10.3 million doses have already been administered in the UAE, which is also a major achievement. It was also awarded a ‘Safe Travels’ stamp from the World Travel and Tourism Council (WTTC).
ATM 2021’s strategic partners include Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) as Destination Partner, Emaar Hospitality Group as Official Hotel Partner, Emirates as Official Airline Partner and The Vision as Official Destination Management Partner.
Registrations for ATM 2021 are open. To register, go to https://www.wtm.com/atm/en-gb/enquire.html
GENEVA: Aviation expert and veteran Willie Walsh has officially taken on the role of Director General of the International Air Transport Association succeeding Alexandre de Juniac, IATA announced.
Walsh was confirmed as IATA’s 8th Director General by the 76th IATA Annual General Meeting on 24 November 2020. He joins IATA after a 40-year career in the airline industry.
Walsh is deeply familiar with IATA, having served on the IATA Board of Governors for almost 13 years between 2005 to 2018, including serving as Chair (2016-2017). He will work from the Association’s Executive Office in Geneva, Switzerland.
Walsh retired from the International Airlines Group (IAG) in September 2020 after serving as its CEO since its inception in 2011. Prior to that, he was CEO of British Airways (2005-2011) and CEO of Aer Lingus (2001-2005). He began his career in aviation at Aer Lingus in 1979 as a cadet pilot.
“I am passionate about our industry and about the critical work that IATA does on behalf of its members, never more so than during the COVID-19 crisis. IATA has been at the forefront of efforts to restart global connectivity, including developing the IATA Travel Pass. Less visible but of equal importance, airlines continue to rely on IATA’s financial settlement systems, Timatic and other vital services to support their day-to-day operations,” said Walsh in a statement.
“I am grateful to Alexandre for leaving behind a strong organization and a motivated team. Together, the IATA team is absolutely focused on restoring the freedom of movement that airlines provide to billions of people around the world. That means your freedom to visit friends and family, to meet critical business partners, to secure and retain vital contracts, and to explore our wonderful planet,” he added.
The IATA Director General said in normal times, more than four billion travelers would have been served in the global aviation industry had it not been for the pandemic.
“My goal is to ensure that IATA is a forceful voice supporting the success of global air transport. We will work with supporters and critics alike to deliver on our commitments to an environmentally sustainable airline industry. It’s my job to make sure that governments, which rely on the economic and social benefits our industry generates, also understand the policies we need to deliver those benefits,” said Walsh.
ABU DHABI: His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, recently launched “Operation 300bn”—the United Arab Emirates’ new strategy seeking to expand the industrial sector’s contribution to the national GDP from the current AED133 billion to AED300 billion by 2031.
Leading the strategy is the UAE’s Ministry of Industry and Advanced Technology which will roll out programs and initiatives to support 13,500 industrial small and medium enterprises (SMEs), the Emirates news agency WAM said.
Focusing primarily on future industries that implement advanced technology and the Fourth Industrial Revolution (4IR) solutions and applications, the strategy will work towards advancing the national economy and contributing to the sustainable development.
It aims to increase the in-country value through improving and promoting local products on a global level and building an attractive business environment for local and international investors to boost productivity. The plan provides a competitive package of facilities and incentives with the aim of positioning the UAE as a global industrial hub that attracts talents, developers and experts from all over the world.
His Highness Sheikh Mohammed bin Rashid Al Maktoum also launched the Unified Industrial Brand Identity under the slogan ‘Make it in the Emirates’. As an extension of the UAE Nation Brand, the new campaign stems from a vision based on distinction, uniqueness and the efforts to build the credentials of UAE products by enhancing their quality and global competitiveness.
Ultimately, every product made in UAE will comply with the highest international quality standards and have its rightful place among the best international products.
His Highness Sheikh Mohammed bin Rashid Al Maktoum said, “the industrial strategy will achieve a giant leap in the UAE’s industrial sector to become the main driving force of the national economy and lead the journey of our next 50 years with greater confidence and speed.”
He added, “the industrial sector is the backbone of large economies, and the UAE has effective resources, policies and leadership to build a global economic base.”
He added, “the industrial sector in the UAE has made great strides. With competitive national products we take pride in, our mission is to double our success, increase the in-country value and build an export ecosystem that enhances the global competitiveness of local products.”
“We aim to launch new industrial projects in a futuristic framework that creates out-of-the-box solutions to address challenges in a timely manner.” He stressed that “strengthening the industrial sector will establish our economic stability, global status and the future of our next generation.”
His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, said, “the industrial strategy will empower our national industries and lead the country’s efforts to advance the industrial sector as a major driver of the national economy over the next 50 years.”
Presenting a giant developmental leap, he noted, the industrial sector is an essential source of economic diversification, job creation and a wider sustainable development.
He noted, “We need to unify efforts of national teams to achieve the objectives of the strategy and support the country’s sustainable economic diversification efforts.”
Sheikh Mohamed bin Zayed Al Nahyan stressed on the necessity to empower youth to adapt to the rapidly-growing technological advancements and harness their talents to expand vital future industrial sectors, Artificial Intelligence, space technologies, energy and pharmaceuticals. These efforts, he said, ensure a sustainable economic growth to build a safe and secure future for the next generation.
“The UAE has succeeded in establishing its status as an economic capital in the region and an ideal business landscape with world-class digital infrastructure, services, security and competitive investment benefits.”
Sheikh Mohamed bin Zayed Al Nahyan added, “the industrial strategy establishes an ambitious objective to double the industrial sector’s contribution to the GDP and increase the in-country value. The comprehensive national programme builds on the country’s investment benefits to lead a sustainable economic development in line with national priorities for the post-COVID-19 phase.”
He concluded, “the industrial strategy brings together the efforts of government and private sectors to spearhead the country’s developmental sectors towards our next 50-year journey and build a future country based on a stable and solid economy.”
Operation 300bn was launched in a special event held at Qasr Al Watan in Abu Dhabi in the presence of His Highness Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior; His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs; and His Highness Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation, among other delegates and officials.
Operation 300bn: Giant Industrial Leap
Presenting the Operation 300bn, Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, affirmed that the strategic national programme aims to deliver sustainable economic growth for the UAE’s industrial sector by enhancing its competitiveness at a regional and global level.
He said, “The strategy aims to increase the industrial sector’s annual GDP contribution to AED300 billion by 2031, while boosting productivity, creating new jobs, enhancing local skillsets, and increasing national competitiveness.”
Operation 300bn will support more than 13,500 SMEs by 2031, as they are major drivers of shaping a productive industrial sector and sustainable economy. More than 33,000 industrial enterprises operate in the UAE, comprising 95 percent of small and medium-sized businesses.
The volume of spending on Research and Development in the industrial sector will increase from AED21 billion, constituting 1.3 percent of the GDP, to AED57 billion in 2031, bringing the contribution to the GDP to 2 percent.
Operation 300bn will focus on promoting existing industries, building on their successes, and enhance their contributions to the GDP, thereby adding value to the UAE’s export ecosystem. At the same time, it will focus on developing a new industrial ecosystem, primarily high-tech industries and 4IR ventures that form the basis of a knowledge-based economy.
Al Jaber noted, “the strategy will build on the solid foundation of the UAE’s core competencies and unique advantages as a regional logistics, energy and manufacturing hub to enhance the country’s competitiveness at a regional and global level. It will significantly accelerate the process of economic diversification already underway in key industrial sectors, where the UAE already has an established presence and expertise, including energy, petrochemicals, plastics, metals and manufacturing; sectors that reinforce the country’s resilience and reduce dependence on global supply chains, such as food, agriculture, water, and healthcare; and industries of the future, including space, biotech, medi-tech and other sectors that are enabled by 41R technologies.”
Future industries that the strategy will focus on are: Space technology, medical supplies and pharmaceuticals, clean and renewable energy (hydrogen production), machinery and equipment, Rubber and plastic, chemicals, metals, advanced technologies manufacturing, electronics and electrical gadgets and food and beverage.
Al Jaber also highlighted that “Among its key initiatives, the new strategy is set to significantly increase in-country value and redirect funds into the local economy. Furthermore, it will drive the development of specifications and standards to ensure the continued competitiveness and value of locally manufactured products fit for global export markets.”
He addressed the current challenges facing the industrial sector including the impact of COVID-19 pandemic, the rapidly-changing technological sphere that calls for a swift adaptation, and the rising regional transformations in line with the new globalisation trends that produce a critical need to achieve self-sufficiency in viral industries and prepare for emerging challenges that may hurdle the supply chain.
“The COVID-19 pandemic has compelled countries around the world to redefine their priorities. The UAE has demonstrated great resilience and agility in its post-pandemic recovery. In order to ensure the UAE’s continued competitiveness, and maintain its strong international standing, as the country embarks on preparations for the next 50 years, Operation 300bn is focused on knowledge, innovation, advanced technology, and Fourth Industrial Revolution (4IR) solutions and applications. The strategy will significantly reduce the UAE’s reliance on imports in vital industries as it supports the building of new capabilities in future industries,” he added.
“Implementing this strategy successfully will require a concerted effort from all stakeholders to collaborate and integrate their capabilities. Increased cooperation and coordination between the public and private sector will positively impact the growth and development of the industrial and advanced technology sectors.”
Vision and Objectives
Seeking to maximise the industrial sector’s revenue, Operation 300bn is a nationwide action plan to strengthen enabling mechanisms and tools, and build the most resilient logistical and legislative framework of its kind. The plan provides an unprecedented package of facilities, incentives and customs exemptions with the aim of attracting foreign investments to the industrial sector, creating a world-class industrial ecosystem.
Under the Unified Industrial Brand Identity, the strategy aims to transform the country’s industrial products into a reflection of the UAE’s identity, built on the pursuit of excellence through unified national standards, and highlight the unique features and superior quality of products made in UAE. It also aims to enhance the competitiveness of national products, increase their recognition, encourage demand and promote them internationally.
As a national strategic framework, the Identity serves as a guarantee, protection and support framework that subjects all UAE products to the same specifications based on the highest standards of quality and excellence. It also provides exceptional support mechanisms to ensure product conformity with national and international quality standards, enhancing their local, regional and global competitiveness.
ABU DHABI: Abu Dhabi’s HOPE Consortium assured it’s capable to transport, store and distribute as much as 18 billion COVID-19 vaccine doses by the end of 2021 anywhere in the world as the global fight against the pandemic goes on.
HOPE Consortium, an Abu Dhabi-based public-private partnership offering a unique end-to-end supply chain solution capable of delivering large quantities of COVID-19 vaccines, from production to those in need, anywhere in the world, safely, transparently and efficiently, made the assurance following the recent conclusion of the first-ever two-day virtual World Immunization & Logistics Summit.
Abdullah bin Mohammed Al Hamed, Chairman, Department of Health – Abu Dhabi, delivered the opening address titled ‘Innovation, ingenuity and inclusiveness: Finding the human solution to a global challenge’. He spoke of the pace at which countries and communities had collaborated since the pandemic began.
“In 2020 and so far this year, the COVID-19 global pandemic continues to be one of the largest and most complex global challenges in modern times. It’s incredible how the world has come together to tackle this issue that transcends communities, borders and continents,” he said.
Discussing the resilience and success that the world has shown, Al Hamed said: “There are incredible technology and scientific advancements that have been developed as a result of the pandemic. Under one unified goal, countries around the world are working tirelessly to find solutions.”
“We strongly believe no one can do this alone. Together, we have a capacity to handle over six billion doses of the vaccine this year, and we are already increasing this to deliver over 18 billion vaccine doses by the end of 2021, with the capacity to deliver this anywhere in the world. We believe the HOPE Consortium is a catalyst for even greater collaboration with partners worldwide,” he noted. “No one is out of this pandemic until everyone is out of this pandemic.”
Robert Mardini, Director-General International Committee of the Red Cross, who delivered a keynote address on ‘Equitable access to vaccines’, said: “The COVID-19 pandemic has shown us that global solidarity is not only morally right, but strategically smart. The worst could be yet to come, for all of us, unless we succeed in ensuring equitable access to the vaccine in every part of the globe. Let us hope that the spirit of humanity and unity bringing different sectors together at this Summit will be an example for the international community everywhere.”
The first panel of the day themed ‘Demand planning, preparedness and overcoming challenges in vaccine administration’, began with distinguished global experts that included Prof. Nachman Ash, COVID-19 National Coordinator, Israel; Nadhim Zahawi MP, Parliamentary Under Secretary of State and Minister for COVID Vaccine Deployment- UK; Dr. Farida Al Hosani, Official Spokesperson UAE Health Sector and Manager, Communicable Disease Department, Abu Dhabi Public Health Center; and Rashed Saif Al Qubaisi, CEO of Rafed.
These experts addressed the best ways to coordinate and overcome the challenges of a mass global COVID-19 immunisation programme, and discussed lessons learned from regional vaccination efforts. In particular, the group spoke about how COVID-19 has tested the preparedness and responsiveness of healthcare systems around the world.
These healthcare systems now face an unprecedented challenge as countries work to secure vaccines for their citizens in order to achieve mass immunisation as quickly as possible.
The ‘Focus on Middle East: Coordinating vaccine logistics operations in the Middle East’ panel looked at how remote and conflict areas will be able to gain access to the vaccine., with the Middle East region being home to some of the highest inoculation rates in the world. The panelists examined vaccine programme implementations, the region’s ongoing challenges and how they are being addressed. Finally, the panelists discussed the role the Middle East can play in supporting the efficient and effective delivery of vaccines to other parts of the world.
Panelists for this session included: Dr. Mariam Ibrahim Al Hajeri, Assistant Undersecretary of Public Health Ministry of Health, Bahrain; Dr. Hani Jokhdar, Undersecretary of Public Health, Ministry of Health, Saudi Arabia; Dr Hussain Abdul Rahman Al Rand, Assistant Undersecretary for Health Centers and Clinics and Public Health, Ministry of Health and Prevention, UAE; Simon Bland, CEO, the Global Institute for Disease Elimination (GLIDE); and Dr. Rana Hajjeh, Director of Programme Management , WHO-EMRO.
The importance of supply chain partnerships in bridging geographical gaps and overcoming financial and infrastructural challenges was the main topic of discussion during the ‘Focus on Africa: Overcoming complex logistical challenges to ensure equitable access to vaccinations across Africa’ panel.
With an estimated total population of more than 1.2 billion people across 54 countries, Africa presents a significant funding and logistical challenge for authorities and NGOs working to ensure equitable access to vaccines across all communities.
The panel discussed how supply chains can provide vaccine access to the continent, with perspectives from a range of experts including the Hon. Dr. Osagie Ehanire, the Minister of Health of Nigeria; Sen. Mutahi Kagwe EGH – Cabinet Secretary, Ministry of Health, Republic of Kenya; David Hadley, CEO , Mediclinic Middle East; Kashif Khalid, Regional Director- Africa & Middle East, IATA; and Bruce Mokaya Oriana, ICRC Head of Delegation in Addis and Permanent Representative to the Africa Union.
The final panel discussion of day two of the Summit was ‘Focus on Asia: Vaccine production and distribution across Asia’. Panelists in this session included: Dr. Harsh Vardhan, Union Minister for Health & Family Welfare, Science & Technology and Earth Sciences, and Chairman, Executive Board, World Health Organisation; Madhav Kurup, Regional CEO MESA, Hellmann Worldwide Logistics; and Dr. Pascal Rey-Herme, Co-Founder and Group Medical Director, International SOS.
The panelists shed light on the latest developments in vaccine production throughout the region. The panel discussed the current challenges facing distribution, and how further collaboration and partnership agreements can help overcome supply chain bottlenecks, especially as they relate to reaching remote and hard-to-reach areas. With millions of doses already dispatched, the current challenges facing distribution around the region, and how further collaboration and partnership agreements support the overall performance of the supply chain.
During the panel, Dr. Pascal Rey-Herme said: “Continuous worldwide collaboration and discussion around the current immunisation situation is critical. I am honored to be part of this forum. International SOS has been called on to support in many ways during the pandemic. From evacuations to helping clients with their return to business and safe travel, and now, increasingly, regarding vaccine programmes. As important as the production of vaccines is, efficient and widespread distribution is just as significant. We must not leave any part of the world behind in the fight against COVID-19.”
Over 4,000 senior decision makers, government officials, industry stakeholders, NGOs, and leading academics registered to attend the Summit. It provided an open forum for global players to discuss the logistical challenges associated with vaccine transport and distribution with the aim of finding solutions to achieve mass and equitable worldwide vaccine access.
The HOPE Consortium, the Emirates news agency WAM reported, has attracted new partners including Agility, Aramex, Bolloré Logistics, CEVA Logistics, DB Schenker, DHL, FedEx Express, Expeditors, Hellmann, Kuehne + Nagel, MICCO Logistics, RSA Global, and UPS.
NEU-ISENBURG: Austrian Airlines and time:matters marked their 100th cargo flight between Asia, Austria and Europe since the pandemic began in March 2020 with a special lively and an expanded partnership for additional cargo flights on the routes.
Medical supplies like protective gloves, masks and suits as well as rapid antigen tests have continued uninterruptedly on the routes since the outbreak of the coronavirus crisis thanks to the partnership between Austrian Airlines and time:matters.
A subsidiary of Lufthansa Cargo, time:matters initiated the move in order to directly transport urgently needed protective materials to Vienna, Frankfurt or Linz. The Austrian Airlines team, henceforth, worked closely with the local branch office of time:matters in Vienna at all times.
More than 2,000 tons of relief supplies were brought to Europe on some 100 flights from Xiamen, Shanghai and Penang. Austrian Airlines’ Boeing B767 and 777 aircraft with built in seats were deployed on these flights as well as the B777 “Prachter”— the German word for a passenger plane turned into a freighter.
On the occasion of the 100th cargo flight jointly operated by Austrian Airlines and time:matters, the converted B777 cargo aircraft of the Austrian flag carrier was given a special livery over the last few days by the experts at Austrian Technik.
The tail section of the aircraft displayed the time:matters logo as well as lettering to point out the anniversary flight taking off today from Vienna and heading to Penang. The aircraft returned to Vienna again on February 28, 2021 carrying urgently needed relief supplies.
“I am extremely pleased that we are able to do something good thanks to the strong partnership with time:matters, especially with its team of cargo experts in Vienna. On the basis of our joint airlift, we can contribute to halting the spread of the pandemic,” said Austrian Airlines CEO Alexis von Hoensbroech.
time:matters CEO Alexander Kohnen added: “We want to further intensify our cooperation with Austrian Airlines and are working to launch additional air cargo routes. I think it is fantastic to leverage this special occasion as the basis for expanding our collaboration and making further plans for the future.”
GENEVA: The International Air Transport Association (IATA) released new analysis showing that the airline industry is expected to remain cash negative throughout 2021 with the cash burn for the year swelling to the $75 billion to $95 billion range from earlier forecast of $48 billion.
At the industry level, airlines are now not expected to be cash positive until 2022. The following factors play into this estimate:
“With governments having tightening border restrictions, 2021 is shaping up to be a much tougher year than previously expected. Our best-case scenario sees airlines burning through $75 billion in cash this year. And it could be as bad as $95 billion. More emergency relief from governments will be needed. A functioning airline industry can eventually energize the economic recovery from COVID-19. But that won’t happen if there are massive failures before the crisis ends. If governments are unable to open their borders, we will need them to open their wallets with financial relief to keep airlines viable,” said Alexandre de Juniac, IATA’s Director General and CEO.
With airlines now expected to burn cash throughout 2021 it is vital that governments and the industry are fully prepared to restart the moment governments agree that it is safe to re-open borders. That makes three initiatives critical:
Planning: Preparing the industry to safely restart after a year or more of disruption will take careful planning and months of preparation. Governments can ensure that airlines are prepared to reconnect people and economies by working with industry to develop the benchmarks and plans that would enable an orderly and timely restart.
“The UK has set a good example. Earlier this week it laid out a structure for re-opening based on an improvement in the COVID-19 situation. This gives airlines a framework to plan the restart, even if it needs to be adjusted along the way. Other governments should take note as a best practice for working with industry,” said de Juniac.
Health Credentials: It is becoming clear that vaccines and testing will play a role as the pandemic comes under control and economies ramp up, including the travel sector. The IATA Travel Pass will enable travelers to securely control their health data and share it with relevant authorities. A growing list of airlines—including Air New Zealand, Copa Airlines, Etihad Airways, Emirates, Qatar Airways, Malaysia Airlines, RwandAir, and Singapore Airlines—have done or are committed to doing trials with IATA Travel Pass.
“Efficient digital management of health credentials is vital to restart. Manual processes will not be able to cope with volumes once the recovery begins. Digital solutions must be secure, work with existing systems, align with global standards and respect data privacy. In developing the IATA Travel Pass these are fully in focus. The IATA Travel App will help to set the bar very high for managing health credentials, protecting against fraud and enabling a convenient travel process. While there is choice in the market for solutions, there should be no compromise on the fundamentals, or we risk failing systems, disappointed governments and travelers, and a delayed restart,” said de Juniac.
Global Standards: As vaccination programs and testing capacity expand, two developments have become critical—global standards to record tests and vaccines; and a plan to retrospectively record those who have already been vaccinated.
“Speed is critical. Fraudulent COVID-19 test results are already proving to be an issue. And as vaccine programs ramp up governments are using paper processes and differing digital standards to record who has been vaccinated. These are not the conditions needed to support a successful restart at scale when governments open borders. The WHO, ICAO, and OECD are working on standards, but each day without them means the challenge gets bigger. We need an early conclusion by competent authorities that the industry can plan around,” said de Juniac.
“Even as governments focus on managing the COVID-19 crisis, we must be thinking a step ahead to the plans, tools and standards needed to restart flying and energize the economic recovery from COVID-19. Working in partnership is nothing new for airlines or for governments. It’s how we have delivered safe, efficient, and reliable connectivity for decades. For a year it’s been lockdowns and restrictions as vaccines were developed and testing capacity expanded. The reason for all the pain that this has caused is to keep people safe and to eventually be able to retore their well-being and that of the economy. With good news on vaccines and growing testing capacity, there is a glimmer of light at the end of the tunnel. So, it’s the time to ask governments for their restart plan and to offer any support from industry that could help,” said de Juniac.
ABU DHABI: Etihad Cargo, the cargo and logistics arm of Etihad Aviation Group, has signed a five-year Memorandum of Understanding (MoU) with the United Nations Children’s Emergency Fund (UNICEF) to support its Humanitarian Airfreight Initiative.
Under the MoU, Etihad Cargo will aid the worldwide distribution of COVID-19 vaccines, essential medicines, medical devices, and other critical supplies to respond to the pandemic, managing all requirements through its dedicated COVID-19 Workforce. The UAE’s national carrier’s initial commitment will centre on helping maintain UNICEF’s regular immunisation programmes for the world’s most vulnerable children.
“Etihad Cargo had no hesitation in supporting UNICEF’s far-reaching humanitarian initiative to aid children most at risk worldwide,” explained Martin Drew, Senior Vice President Sales and Cargo, Etihad Aviation Group. “This partnership is in line with Etihad Aviation Group’s commitment to improve the wellbeing of people everywhere and underpins Abu Dhabi’s international role in providing humanitarian aid to build a safer world.
“With extensive experience and expertise in safe and efficient pharmaceutical logistics, Etihad Cargo will leverage its IATA CEIV-certified PharmaLife specialised pharmaceutical and healthcare product for the transportation of pharmaceuticals under temperature control which, under the membership of Abu Dhabi’s The HOPE Consortium, is already offering a complete supply chain solution to aid global COVID-19 vaccine distribution.”
Under the MoU, Etihad Cargo will collaborate with UNICEF’s global freight forwarder network, including with regard to services for countries with no commercial access. Services offered include high loading priority for vaccines and essential humanitarian supplies, shipment security and controlled cool chain monitoring and adjusting Etihad Cargo’s cold chain capacity to meet UNICEF’s forecast requirements.
“Delivery of these life-saving vaccines is a monumental and complex undertaking, considering the sheer volumes that need to be transported, the cold chain requirements, the number of expected deliveries and the diversity of routes,” said Etleva Kadilli, Director of UNICEF Supply Division. “We are grateful to these airlines for joining forces with the UNICEF Humanitarian Airfreight Initiative to support the roll-out of COVID-19 vaccines.”
The UNICEF Humanitarian Airfreight Initiative brings together global airlines that cover routes to more than 100 countries, in support of the COVAX Facility – a global effort aimed at equitable access to COVID-19 vaccines. The initiative will also act as a global logistics preparedness mechanism for other humanitarian and health crises over the longer term.
During the past 12 months, Etihad Cargo has increased its pharmaceutical shipments by 50 percent through PharmaLife. In addition to supporting global customers, the IATA CEIV-certified product has facilitated Etihad Cargo’s support of The HOPE Consortium’s efforts to serve the anticipated global demand for COVID-19 vaccines.
Airlines based in the Asia Pacific region saw their international cargo volumes decline by more than 15% last year as the impact of the Covid-19 outbreak took its toll.
Figures from the Association of Asia Pacific Airlines (AAPA) show that in 2020 international scheduled cargo traffic declined by 15.5% year on year to 60.2bn freight ton kms (FTK).
Non-scheduled and charter operations, which AAPA does not include, would have helped offset some of the declines.
Meanwhile, cargo capacity fell by the higher amount of 24.4% on a year earlier, pushing up the cargo load factor for the year by 7 percentage points to 59.4%.
In December, cargo traffic fell by 6.4% compared with last year to 5.8bn FTK, while the load factor increased by 12.2 percentage points to 71.9%.
The organization said that last year cargo yields offered a welcome boost to operating revenues but added that airlines continue to face an existential crisis with commercial passenger operations remaining at a standstill.
Dubai has launched a logistics alliance that aims to speed up distribution of Covid-19 vaccines around the world through the emirate.
The Dubai Vaccines Logistics Alliance said it would combine Emirates SkyCargo’s air network with DP World’s worldwide network of ports and logistics operations, along with the infrastructure of Dubai Airports and International Humanitarian City (IHC) to distribute vaccines worldwide.
The alliance is also working with a broader set of stakeholders including pharmaceutical manufacturers, forwarders, government agencies and other entities for transportation of vaccines.
Ahmed bin Saeed Al Maktoum, president of Dubai Civil Aviation Authority, chairman of Dubai Airports and chairman and chief executive of Emirates Airline and Group said, “Each alliance partner brings to the table a specific and complementary set of strengths and capabilities in vaccine distribution, allowing us to build a 360-degree solution that harnesses the combined logistical and infrastructural advantages of Dubai as a hub.
“Together, we are able to store a large volume of vaccine doses at a time and bring in and distribute
vaccines to any point around the world within 48 hours.”
IHC, the world’s largest hub for humanitarian logistics based in Dubai, will offer expertise in humanitarian logistics for aid materials such as food and medicine in markets with limited infrastructure. IHC and Emirates SkyCargo have already partnered on many humanitarian cargo flights and earlier in 2020, also signed a MoU for closer collaboration for humanitarian assistance flights.
DP World’s logistics operations will facilitate the collection of vaccines from manufacturing sites in places like Europe, the US and India and deliver them to airports, seaports and dryports for onward transportation.
DP World and UNICEF have also announced a partnership to support the global distribution of Covid-19 vaccines and related immunization supplies in low- and lower-middle-income countries.
Emirates SkyCargo has over 15,000 sq m of cool chain space for pharmaceuticals across its terminals in Dubai and started transporting Covid-19 vaccines on its flights during December.
Dubai Airports, operator of Dubai International (DXB) and Dubai World Central (DWC), will be contributing to the efforts of the newly formed Dubai Vaccine Logistics Alliance by providing additional space at dedicated facilities at Dubai International (DXB). The repurposed cargo facilities will act as storage for vaccines.
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