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Positive Progress Report Vol. 26 No. 3 April 2019 orientaviation.com POSITIVE PROGRESS REPORT But the airline has to do better, says Cathay Pacific Airways CEO, Rupert Hogg Asiana plans NokScoot returning Jet Airways restructure after to North Asia propped up with co-CEO Park quits network strategy funding lifeline connectivity INDUSTRYBreakthrough INSIGHTfor REPORT airlinecabin IoT Now you can accept payments in virtually any form. Saying yes to alternative forms of payment means saying yes to new streams of revenue. Our payment solutions integrate easily with your current systems, helping you accept AFPs at a lower cost. And navigate the global payments market with ease. A more complete payment program starts with UATP. Learn more at UATP.com. CONTENTS Volume 26, Issue 3 COVER STORY 16 POSITIVE ORIENT AVIATION MEDIA GROUP 17/F Hang Wai Commercial Building, PROGRESS 231-233 Queen’s Road East, Wanchai, Hong Kong REPORT Editorial (852) 2865 1013 E-mail: [email protected] But the airline has to do better Website: www.orientaviation.com Mailing address: says Cathay Pacific Airways CEO, GPO Box 11435 Hong Kong Rupert Hogg Publisher & Editor-in-Chief Christine McGee E-mail: [email protected] Associate Editor & Chief Correspondent Tom Ballantyne Tel: (612) 9638 6895 Fax: (612) 9684 2776 E-mail: [email protected] Asia Editor Will Horton Tel: (852) 2865 1013 E-mail: [email protected] COMMENT 23 SITAONAIR signs WiFi deal with Taiwan’s Starlux North Asia Correspondent 5 Boeing battling intense global scrutiny 24 Connected Cabin moves to development stage Geoffrey Tudor 24 Customer satisfaction increases when baggage Tel: (813) 3373 8368 ADDENDUM tracking is available E-mail: [email protected] 6 Focus on Korean Air scion after death of Photographers disgraced father INDUSTRY ADDENDUM Rob Finlayson, Graham Uden, 6 Asia-Pacific travel binge accelerates, OAG survey 25 International Air Transport Association launches Ryan Peters reports perishable cargo certification Chief Designer 6 Firm no from Fernandes to Malaysia Airlines 25 Japan Airlines and Travelport Worldwide joint Chan Ping Kwan rescue venture caters for domestic Japanese market Printing 7 Success with pilots wins promotion for China 25 Japan’s flag carrier contracts with Satair for Printing Station(2008) Airlines president Hsieh expendable materials for A350 fleet 25 Airways New Zealand and Leidos unite to sell ADMINISTRATION NEWS new SkyLine-X ATM system General Manager 8 Cathay Pacific’s to do list at Hong Kong Express 25 ST Engineering’s SERIS airport analytics use Shirley Ho AI and machine learning to enhance airport E-mail: [email protected] operations 26 Drone-ship-to-shore deliveries forecast 90% cost ADVERTISING savings Asia-Pacific, Europe & Middle East Clive Richardson Tel: (44) 7501 185257 E-mail: [email protected] The Americas / Canada 10 Boeing’s heavy hit from deadly 737MAX crashes Barnes Media Associates 12 Too little, too late at Jet Airways? Ray Barnes 13 Asiana restructuring must finally deliver Tel: (1 434) 770 4108 Fax: (1 434) 927 5101 22 NokScoot building north Asia network with E-mail: [email protected] ex-SIA 777-200s 26 Honeywell and global drone air space [email protected] management platform, AirMap, to develop INDUSTRY REPORT: ASIA-PACIFIC drone tracking device Follow us on Twitter @orientaviation AIRLINE INTERIOR TRENDS 26 European Thales and the Civil Aviation Authority 23 Asia-Pacific airlines embrace The Internet of of Singapore work on Open ATM Architecture © All rights reserved Things technology in cabin platform Wilson Press HK Ltd., 23 Cutting edge digital technology revolutionizes 26 Malaysia’s HM Aerospace expands ALSIM Hong Kong, 2019 cabin design partnership APRIL 2019 / ORIENT AVIATION / 3 VIE_Aviation_OrientAviation_Business_202x273_ET0104.indd 1 18.03.19 09:23 COMMENT Boeing battling intense global scrutiny There were no survivors from the 737 MAX Lion Air engines, is sufficient when aircraft operating technology and Ethiopian Airlines crashes, but unlike the majority is becoming more complicated than ever. of such accidents, these two tragedies have far wider The second issue prompted by the MAX crashes is ramifications for the aviation industry. They draw whether pilot training is keeping abreast with the cockpit attention to at least two aspects of airline operations that of new model airliners. Clearly not enough attention has only have become evident in recent years. been given to conversion training for pilots on the MAX. Being first to market with a new jet used to be a They found themselves at a loss when new technology, winning formula for carriers striving to stay a step ahead to which they were not accustomed to or maybe did not of rivals. No more. Being a launch customer is proving to know was available, misbehaved. be a risky and costly business. Following a number of incidents of pilots reacting Two prime examples were the long delays in the wrongly when cockpit technology backfires, many introduction of the A380 and 787 Dreamliner. There training academies have adjusted their courses to ensure were serious issues with lithium batteries igniting on the students learn to fly with the technology but also are Dreamliner and later, problems with Rolls-Royce engines properly trained to “fly the plane” without it. that forced the grounding of several of the type. As for the certification of aircraft, their systems and For Qantas, the dramatic engine explosion on a engines, no matter how thorough the ground and flight Qantas A380 not long after it took off from Singapore tests are, there are faults that won’t show up until these was caused by a poorly produced Rolls-Royce fuel pipe. aircraft are operated under the pressure of day-to-day Similar issues, this time with Pratt & Whitney engines on commercial flying. And then there is the regulatory issue. the new A321 neo, have again caused in-flight shutdowns Exemplary standards must be maintained to ensure new and groundings. aircraft types have undergone the testing necessary The MAX was not so lucky. The Lion Air and for safe flight. There is no harm in requiring new, Ethiopian Airlines accidents raised the question of higher levels of testing before these machines fly with whether the certification process, for both airframes and passengers on board. ■ TOM BALLANTYNE Associate editor and chief correspondent Orient Aviation Media Group The most trusted source of Asia-Pacific commercial aviation news and analysis ORIENT AVIATION ORIENT AVIATION CHINA “It has established itself as the primary source of information on industry topics in the Asia-Pacific region” APRIL 2019 / ORIENT AVIATION / 5 ADDENDUM Focus on Walter Cho after death of disgraced Korean Air patriarch At press time, Korean Air (KAL) At this early stage, it is restructuring must finally announced its chairman and expected Cho’s son, Korean Air deliver page 13. CEO, Cho Yang-ho, 70, had president and COO, Walter, 43, Co-Asiana CEO, Han died peacefully in a Los Angeles will succeed his father at KAL, but Chang-su, is now sole CEO of the hospital on April 7. No cause not before he overcomes several airline. After the announcement of death was announced but a regulatory hurdles including a of Park’s departure, Asiana company official told Reuters large tax bill, in the path to the shares spiked by 15.1%, before Cho has suffered from a lung top job. settling back to a 2.9% rise. condition. His passing came In an Orient Aviation Kumho Asiana said Park met the just shy of three weeks after he cover story in November last chairman of the group’s main was voted off the board of the his father at KAL in 1999. He year, the younger Cho made creditor, Korea Development airline group by disgruntled built Korean Air into one of it clear he knew he must lead Bank (KDB), on March 27 and shareholders. Asia’s largest airlines and was a change at KAL. “I believe our asked for help to normalize At the airline group’s founding member of the SkyTeam brand and reputation starts with Asiana Airlines. AGM, activist investors from a airline alliance. He controlled our employees. I am trying to The Asiana parent said government pension fund led the 30% of Korean Air through communicate more with them. it would launch an executive shareholder charge to oust Cho parent company, Hanjin Group, Making sure they are happy search for a Park successor following allegations he favored of which he was also chairman. working for us and with us and and establish “an emergency family members in the group’s However, his achievements making sure the product is there. management committee headed business dealings and had have been clouded by allegations I think happy employees generate by the vice chairman of the group embezzled MRO and duty free of tax evasion that extend back more happy customers.” to normalize our management in revenue meant for the carrier. for decades, corruption cases Rival Korean carrier, Asiana a short period of time and hire a Cho was the first controlling that charge Cho with stealing Airlines also faces uncertain respectable person outside the shareholder of a Korean chaebol at least US$17 million from the times following the resignation company as the new chairman”. to be forced off a board. He company and public outrage of co-CEO, Park Sam-koo, who The departed Park is the biggest continued as KAL chairman and at the entitled behavior of his also has resigned as chairman of shareholder, at 31.1%, in CEO after his sacking as these daughters, “nut rage” heiress, parent, the Kumho Asiana Group Kumho & Company, the holding positions are non-board roles. Cho Hyun-ah, and tantrum- and as co-CEO of shareholder, company of Kumho Asiana Patriarch Cho had succeeded prone sister, Cho Hyun-min.
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