The making of business

This year's AVEX was an improvement over previous ones, with many deals signed and awards granted, but still needs more transparency, says Amirah Ibrahim

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As in the earlier shows, President Hosni Mubarak inaugurated the third edition of AVEX air show and Expo at Sharm El-Sheikh airport. Accompanied by a number of ministers and top officials, Mubarak toured the area and the inside pavilions where 54 Egyptian, Arab and foreign companies working in the field of aviation exhibited their products. Prime Minister Ahmed Nazif, Defence Minister Hussein Tantawi, along with Ministers of Petroleum Minister, Energy and Electricity, Information and International Cooperation joined the president.

Mubarak praised the development achieved within the Egyptian civil aviation sector and stressed the need for developing cooperation with international bodies in order to benefit from new technology in the field. Aviation Minister Ahmed Shafiq briefed the president on the exhibition.

The event, which is endorsed by the Egyptian Ministry of Civil Aviation, is designed for companies within the small and midsize airplane industry and is focused on deal making and experimental marketing. Thirteen aircraft manufacturers displayed 30 aircraft, including Airbus, Gulf Stream, Embraer and Cessna.

The air show and expo took place over four days, with the first two days dedicated to trade visitors focusing purely on business, and the remaining two days filled with public attractions. The main activities for the show included aerobatics displays by the Red Bull team, the Flying Bulls team and the Egyptian Silver Stars along with a high quality aircraft showcase and static displays.

The air show this year moved from its previous scheduled February timing to November so as to avoid the bad weather turbulence which almost destroyed the 2006 edition, causing many exhibitors to withdraw their aircraft. The global credit crunch almost caused the event to be postponed as the aviation business around the world suffered as a result, causing the collapse of many airlines and forcing manufacturers to reduce employment and suspend delivery dates.

"So far, we do not feel any impact, but I am quite sure it will come," replied Ibrahim Manna, chairman of the Holding Company for Airports and Air Navigation. "In 2007 we had a growth rate in revenues of 27 per cent in the domestic sector and 20 per cent in the international one. My expectation for this year in light of the crisis is that we will lose three to five per cent of the growth," he added.

Aviation authorities hired a new French company to organise the event, but Manna declined to reveal figures for the expenses and sources to fund the costs.

Again, this year's event lacked the attendance of world prominent names, relying mainly on the president and his son Gamal as the top guests. Figures of visitors and how far the event promoted the tourism business to Sharm El-Sheikh were absent. The on-line web site of the air show operated by the organisers, naseba, was not updated once the show began.

This year's event however surprised observers with many bright sides, compared to the previous two editions in 2005 and 2006. The organisation of activities during the trade and public days appeared much better. Hiring a professional team of staff by the organisers also had a positive impact on the quality of services provided to exhibitors at the static area as well as the inside pavilions. Unfortunately, media coordination was poor, with little international impact.

For the first time, the Egyptian air show hosted a business seminar, the MENA Business Aviation Congress, approaching civil aviation industry in the Middle East and North Africa. The seminar which consisted of four sessions mainly focused on examining the current development in airports and airlines in the region and the means to boost regional cooperation with regard to the current global credit crunch.

The Arab Air Carriers Organisation (AACO) introduced a forecast for Arab aviation, reviewing the difficult crisis the business passed through, the impact and available opportunities.

A valuable paper discussed overcoming future challenges for airports in the Middle East and Africa. The paper, introduced by Anne Graham of the University of Westminster, called for a study of the best practices among different types of airlines to find suitable solutions to help airports and airlines face the coming challenges.

The second session included three workshops topped by expanded discussions over maintaining the traffic growth in light of the current financial crisis. The panel discussion was introduced by Hassan Rashed, chairman of the Egyptian Airports Company. Both the French management of ADP (Aeroport De Paris) which runs five international Egyptian airports and the German management Fraport which runs Cairo International Airport suggested alternatives to approach the issue. "Offering good prices and services, completing investment plans and good marketing could be a strong help to maintain the traffic," concluded Patrice Bastid, ADP Executive Manager.

Fraport's Manfred Bair called to make use of the national carrier's membership in the Star Alliance four months ago to develop Cairo International into a hub airport. "Egyptian aviation authorities should find solutions to receive extra flights at this main gateway. This should include permitting low cost carriers and charter airlines to operate to the capital airport."

The third session consisted of three workshops, covering social responsibility in regard to the aviation industry and the future of the private jet market in the Middle East. Oman Airport Management Company displayed a vision of the impact of commercial aviation on airports in the future, suggesting keys to develop and upgrade airports and produce changes along the lines of the Oman Airport.

The International Civil Aviation Organisation (ICAO) contributed to the fourth session with a comprehensive review of regional cooperation among civil aviation authorities. ICAO Middle East Regional Director Mohamed RM Khonji reviewed the strategic targets of the international body, the world's main traffic movement and challenges to the business. In this regard, his paper called for regional cooperation within regional projects to help aviation partners to meet the challenges.