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AviTrader Weekly News 2018-02-19

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WEEKLY AVIATION HEADLINES<br />

10<br />

OTHER NEWS<br />

vice of four weekly flights from London Gatwick<br />

to Buenos Aires Ezeiza International Airport will<br />

offer passengers more choice and low fares.<br />

Gatwick Airport CEO Stewart Wingate said: “The<br />

launch of Norwegian’s first ever South American<br />

route is another exciting landmark in Gatwick’s<br />

ongoing mission to connect the UK to more and<br />

more long-haul destinations. The airport now offers<br />

63 long-haul connections – with many, including<br />

Buenos Aires, operated by low-cost carriers –<br />

making Gatwick the busiest departure airport for<br />

low-cost long-haul services in the world.<br />

IFS, the global enterprise applications company,<br />

has reported that Air Transport Services Group<br />

(ATSG), a provider of medium wide-body aircraft<br />

leasing, air cargo transportation and related<br />

services, has selected IFS Maintenix to deliver<br />

comprehensive fleet maintenance management<br />

across its two cargo airline subsidiaries – ABX Air<br />

and Air Transport International – and its aircraft<br />

leasing subsidiary, Cargo Aircraft Management.<br />

As one of the largest owners and operators of<br />

converted Boeing 767 freighter aircraft, ATSG<br />

has experienced strong growth in recent years.<br />

To meet evolving operational demands, ATSG’s<br />

airline subsidiaries – ABX Air and Air Transport International<br />

(ATI) – and its aircraft leasing subsidiary<br />

– Cargo Aircraft Management (CAM) – sought<br />

a modern, scalable software solution that could<br />

drive greater standardization and maintenance<br />

management process efficiencies.<br />

Following a market review, ATSG’s subsidiaries<br />

selected IFS Maintenix to deliver a full suite of<br />

engineering, planning and line maintenance functionality,<br />

helping ATSG optimize the maintenance<br />

management for its combined fleet.<br />

Investors will be keeping a keen eye on how airlines<br />

approach the dual problems of rising fuel<br />

costs and labor costs this year. Last December the<br />

International Air Transport Association (IATA)<br />

highlighted these two elements, which are airlines’<br />

highest expenditures, as the major challenge<br />

for <strong>2018</strong>. In 2016, labor costs accounted for<br />

22% of airlines’ costs and fuel 21%. For <strong>2018</strong>, predictions<br />

reveal an expected 30.9% cost for labor<br />

and 20.5% for fuel. With the fluctuating nature of<br />

fuel prices, back in 2013 those figures were 33%<br />

for fuel and 18% for labor.It should also be noted<br />

that labor costs are traditionally higher in Europe<br />

and North America than in Asia, for which fuel<br />

remains the higher cost. Exacerbating the current<br />

challenge of labor costs is a shortage of workers<br />

on a global scale, and in particular many airlines<br />

are struggling with a pilot shortage as they look to<br />

expand their fleets. According to IATA Chief Economist<br />

Brian Pearce, “As airlines have been making<br />

profit, the workforce has got market power,<br />

so that is pushing up the cost of labor.” IATA has<br />

“Josie Pepper”, the new robot at Munich Airport<br />

She is 120 centimeters tall, with sparkling, round eyes and a pleasant voice: Starting February<br />

15, “Josie Pepper” the robot will be answering questions for passengers in Munich Airport’s<br />

Terminal 2. Whether they need directions to their gate or want to stop at a certain restaurant<br />

or shop – Josie Pepper will look them in the eyes and give them a prompt answer.<br />

With the rollout of Josie Pepper, Munich Airport and Lufthansa are breaking new ground: It<br />

is the first-ever test of a humanoid robot equipped with artificial intelligence at a German<br />

airport. For the next few weeks, Josie Pepper will welcome travelers to the non-public area of<br />

Terminal 2, which is jointly operated by Munich Airport and Lufthansa. In her initial deployment,<br />

Josie Pepper, who speaks English, will await passengers at the top of the ramp leading to<br />

the shuttle connecting the main terminal to the satellite building. This test phase will be used<br />

to show whether Josie Pepper is accepted by passengers.<br />

Josie Pepper’s “brain” contains a high-performance processor with a WLAN internet access.<br />

This creates a connection to a cloud service where speech is processed, interpreted and linked<br />

to the airport data. What sets the system apart: When this robot type speaks, it does not just<br />

deliver pre-defined texts. With its ability to learn, it answers each question individually. Just<br />

like a “real” brain, the system gets steadily better at combining questions with the relevant<br />

information to provide more precise replies.<br />

IBM Watson Internet of Things (IoT) cloud-based, artificial intelligence technologies are behind<br />

Josie Pepper’s capabilities. Pepper was developed by the French company SoftBank Robotics.<br />

The lady robot was given the name “Josie” by the staff of Munich Airport and Lufthansa when<br />

she arrived at the airport.<br />

also forecast a hike in unit costs, measured as an<br />

airline’s cost to operate each kilometer and seat<br />

flown, from a rise of 1.7 percent in 2017 to 4.3<br />

percent in <strong>2018</strong>.<br />

In the United States, investors are concerned that<br />

the three largest carriers – American, Delta and<br />

United – could well be heading for a price war<br />

just as higher costs from pay increases agreed last<br />

year start to take effect. Airlines must now look<br />

even more closely at those areas where potential<br />

savings can be made. According to aviation<br />

consultant John Strickland, “The most successful<br />

airline managements are the ones that have been<br />

very cost-focused every day – not just on staff<br />

costs but on aircraft costs, airport charges, distribution<br />

costs and so on.”<br />

INDUSTRY PEOPLE<br />

Photo: Munich Airport<br />

• Boeing has appointed Linda Mills as vice<br />

president of Communications for Boeing<br />

Commercial Airplanes. Mills, an awardwinning<br />

executive with 20 years of strategic<br />

communications experience, joins<br />

Boeing from Seattle-based Starbucks,<br />

where she served as vice president of<br />

Global Communications.<br />

In her new role, Mills will work with a<br />

team of communications and marketing<br />

professionals responsible for global media<br />

relations, employee and executive

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