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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