From Hawker to Flying High

Vol. 23 No. 9 November 2016 orientaviation.com

FROM HAWKER TO FLYING HIGH

Wang Junjin’s extraordinary journey from roadside hawker to chairman of Shanghai’s Juneyao Airlines

New Philippines president ATR pursues Nok Air unfairly improves Manila airport market share with attacked says operations says airline boss a reluctant China its CEO

IndustryTrainingAsia-Pacific: insight: in the beyond the simulator Pratt & Whitney is changing the face of commercial air travel.

PurePower® Geared Turbofan™ engines in commercial service today. Manufacturers and operators of new-generation airliners, and their new-generation passengers, have adopted the PurePower GTF engine. Because cleaner, greener, and quieter is exactly how they expect to fly. Learn more at PurePowerEngines.com.

Visit us at Airshow China, Exhibit H5D1 Connect with us

41909_CE_Sunglasses-OrientAviation.indd 1 10/10/16 7:22 AM

Client: Pratt & Whitney Commercial Engines Ad Title: Sunglasses Publication: Orient Aviation - November Trim: 202 x 273 mm • Bleed: 212 x 283 mm • Live: 182 x 253 mm CONTENTS Volume 23, Issue 9

COVER STORY

PUBLISHED BY

ORIENT AVIATION MEDIA GROUP FROM Mailing address: GPO Box 11435 Hong Kong Office: HAWKER 17/F Hang Wai Commercial Building, 231-233 Queen’s Road East, Wanchai, Hong Kong TO FLYING Tel: Editorial (852) 2865 1013 E-mail: [email protected] HIGH Website: www.orientaviation.com

Publisher & Editor-in-Chief The extraordinary road to Christine McGee riches of former yoghurt hawker, E-mail: [email protected] Juneyao Airlines chairman, Chief Correspondent Wang Junjin Tom Ballantyne Tel: (612) 9638 6895 Fax: (612) 9684 2776 E-mail: [email protected]

Greater China Correspondent Dominic Lalk Tel: (852) 2865 1013 COMMENT 26 Now the hard work begins on emissions E-mail: [email protected] 5 Industry must unite to thwart terror reductions

North Asia Correspondent Geoffrey Tudor ADDENDUM MAIN STORY Tel: (813) 3373 8368 7 Nok Air unfairly attacked says its CEO 12 More action, less talk about global aviation E-mail: [email protected] 7 Is Jet Airways’ Goyal back in control after security says IATA boss India Correspondent executive shifts at the carrier? R. Thomas Tel: (852) 2865 1013 8 Chinese investors about to join Virgin Australia E-mail: [email protected] board

Photographers 8 ATR pursues market share with reluctant Chinese Rob Finlayson, Colin Parker, buyers Graham Uden, Ryan Peters

Chief Designer Chan Ping Kwan

Printing Printing Station(2008)

ADMINISTRATION INDUSTRY INSIGHT SPECIAL FEPORT General Manager AVIATION TRAINING IN THE ASIA-PACIFIC: AN Shirley Ho E-mail: [email protected] UPDATE NEWS BACKGROUNDERS 30 Beyond the simulator ADVERTISING 10 Air New Zealand builds on extraordinary profit

Asia-Pacific, Europe & Middle East run Clive Richardson Tel: (971) 50 554 6608 E-mail: [email protected]

The Americas / Canada Barnes Media Associates Ray Barnes Tel: (1 434) 770 4108 Fax: (1 434) 927 5101 E-mail: [email protected]

32 Training flourishes as pilot demand escalates Follow us on Twitter @orientaviation 33 New Zealand joint venture training academy © All rights reserved 16 New Philippines president improves Manila setting up in Vietnam Wilson Press HK Ltd., airport operations says airline boss 33 Training challenges in the era of the automated Hong Kong, 2016 24 Star Alliance expands in Shanghai flight deck

NOVEMBER 2016 / ORIENT AVIATION / 3 B:212 mm

T:202 mm

S:192 mm

A successful partnership spanning more than 50 years: Japan Airlines & ExxonMobil

Making smart decisions has helped Japan Airlines (JAL) “We value ExxonMobil’s support in our ongoing become one of the world’s premier carriers. efforts to become the world’s most valued and “Many decisions have contributed to our successes and choosing the right suppliers is one of them,” preferred airline.” says Hiroki Haraikawa, General Manager of Engine Maintenance Center at Japan Airlines. “We’ve relied — Hiroki Haraikawa, General Manager of Engine Maintenance B:283 mm S:253 mm on ExxonMobil lubricants to fly our planes safely for Center at Japan Airlines T:275 mm more than 50 years and given this, we believe this partnership is essential.” “We’re proud of our achievements but we spend little The relationship started in the early 1960s when JAL time admiring them,” Haraikawa said. “Instead, we began using Mobil Jet™ Oil II, a high-performance focus on how to stay ahead of the industry and deliver aircraft-type gas turbine lubricant, which it still outstanding experiences for our passengers.” uses today. This forward-looking philosophy is what propels JAL Anchored by mutual trust and respect, the to seek out best-in-class lubrication technologies to partnership continues to grow. Today, JAL also optimize its fleet and minimize downtime. ™ ™ uses Mobilgrease 33 grease and Exxon HyJet In 2011, JAL became the first major airline to conduct a hydraulic fluids. service evaluation for Mobil Jet™ Oil 387, ExxonMobil’s “We value ExxonMobil’s support in our ongoing efforts latest advanced synthetic High Performance Capability to become the world’s most valued and preferred (HPC) turbine engine oil. airline,” Haraikawa said. “ExxonMobil’s expertise and Recording nearly 80,000 hours of on-wing time, lubricant solutions help maximize the performance of the results far exceeded expectations of JAL’s our fleet.” maintenance and management teams. Along with its Not surprisingly for a company that prides itself on exceptional deposit control, seal compatibility and punctuality, JAL has an enviable track record for wear protection, Haraikawa said that the oil’s ability to fleet efficiency. minimize coking in gas turbine bearing components is equally impressive. Recently, JAL was named the world’s best airline for its on-time performance service by FlightStats Inc., an “We believe that ExxonMobil’s advanced lubricant independent, aviation performance-tracking company. technologies, such as Mobil Jet Oil 387, are setting the With an on-time arrival rate of 89.44 percent for industry standard,” Haraikawa said. “As we consider domestic and international flights in 2015, JAL topped the future needs of our fleet, our trusted partnership the rankings for the Major International Airlines and with ExxonMobil will continue to help in our efforts to Asia-Pacific Major Airlines categories. be the world’s most valued and preferred airline.”

Image used with permission from Japan Airlines.

Filename: 721169-1_V2.indd

CLIENT: BBDO New York ExxonMobil PRODUCT: Aviation-JAL Advertorial Agency Job Number: BDNY-P000002387 Cradle Job Number: 721169-1 JOB#: 721169-1 SPACE: None Proof #: 2 Path: EG-PLUS-NY:Volumes:EG-PLUS-NY:EGPlus_ Created: 10-6-2016 11:02 AM BLEED: 212 mm x 283 mm Departments:Print:A‚ÄîF:BBDO:Exxon:721169-1:721169-1_Mechanicals:721169-1_V2.indd Saved: 10-7-2016 2:34 PM TRIM: 202 mm x 275 mm Operators: Chong, Patricia / Chong, Patricia Printed: 10-7-2016 2:34 PM SAFETY: 192 mm x 253 mm Print Scale: None GUTTER: None PUBS: Orient Aviation Ink Names: Cyan OOH Scaling Info: Fonts: EMprint Regular, Light ISSUE: November 16 MCD:10/21 Magenta Build Scale: 100% TRAFFIC: Darcey Lund Yellow Final Safety : 253 mm H x 192 mm W ART BUYER: None Black Final Viewing Area : 275 mm H x 202 mm W ACCOUNT: None Final Trim : 275 mm H x 202 mm W RETOUCH: None Final Bleed : 283 mm H x 212 mm W PRODUCTION: None ART DIRECTOR: None COPYWRITER: None Ink Density: None Page: 1 of 1

IMAGES: 1680_1050.psd CMYK 200 ppi EM_pattern_Blue_10x4_cmyk.ai exmo_tag_tm_cmyk.eps COMMENT

Industry must unite to thwart terror assault

At long last the aviation industry is developing a global plan ICAO was developing a global aviation security plan. It was to better combat terror attacks aboard its aircraft and at its being fast-tracked, she said. A draft is scheduled for completion airports. by May next year, with the goal of putting it before the ICAO At the International Air Transport Association’s (IATA) council shortly after that. annual AVSEC conference, held last month in Kuala Lumpur, the This could be a problem as ICAO, with 192 member states, association’s director general and CEO, Alexandre de Juniac, is not known for working at speed. So the deadline for ICAO made a powerful call for governments and the industry to work council ratification could be pushed out. more closely to combat terror attacks. In the meantime, IATA, perhaps emboldened by its success Assaults on airlines are not new. They and their passengers in winning global industry agreement for reducing greenhouse have suffered from hijackings to 9/11 and from the downing of gases, is on the road talking to governments and other passenger aircraft to this year’s ISIS inspired airport bombings. stakeholders about a standardized transparent security policy. Sadly, these increasingly frequent attacks illustrate Issues to be addressed are rules for overflying conflict that industry attempts to make their businesses and their zones, improving landside security at airports, identifying passengers secure from terrorist assaults are failing. Not insider threats from airline and airport staff, thwarting cyber enough is being done to fight terrorism in aviation. security assaults and better harmonizing of Passenger Name The most important message to emerge from last month’s Record and Advance Passenger Information requirements and AVSEC was that all sides now appear committed to working airport checkpoints. better together. At the conference, IATA’s de Juniac laid out a It is a big ask. Nevertheless, it is encouraging that for the four principle plan to improve global aviation security. first time all the interested parties, particularly governments, Importantly, the International Civil Aviation Organization’s are prepared to unite in the fight to avoid more loss of life from (ICAO) secretary general, Liu Fang, announced at AVSEC that terror attacks on airlines and at airports. ■

TOM BALLANTYNE Chief Correspondent Orient Aviation Media Group

COMING COVER STORY BONUS DISTRIBUTION UP IN Orient Aviation profiles the best airline CEO in the Orient Aviation Person of the Year Dinner and Awards DECEMBER region in our Person of the Year 2016 cover story Hong Kong THE YEAR AHEAD Lunch with Orient Aviation Chief correspondent, Tom Ballantyne, seeks the (Guest of Honor and Speaker, Malaysia Airlines CEO, views of industry leaders about the issues they Peter Bellew) believe will dominate 2017 Hong Kong, January 18, 2017

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”

NOVEMBER 2016 / ORIENT AVIATION / 5 COMMERCIAL AIRCRAFT LEASING | AVIATION FINANCE SOLUTIONS

Congratulations Philippine Airlines

On your 75th Anniversary and the delivery of your newest Boeing 777-300 ER. Intrepid Aviation and PAL - growing further, together.

IntrepidAviation.com

Stamford Singapore Dublin Phone: +1 203 905 4220 Phone: +65 6408 0192 Phone: +353 1 901 8400 ADDENDUM

Nok Air unfairly attacked says its CEO

Patee Sarasin, the flamboyant chief were being forced to exceed standard flight the Asia-Pacific for on-time performance in executive of Nok Air, has angrily rejected hours. Nok lost many experienced pilots as September - with an 81% score, he said. claims the Thai carrier has one of the worst a result of the dispute. The empty cockpits “When things like flight delays affect reputations for cancelling or delaying flights. lead to mass cancellations of flights and did passengers, we follow established industry The carrier hit the headlines in October serious damage to Nok’s reputation with the procedures. We comply with regulatory when Thailand’s Transport Minister, travelling public. standards including ticket refunding to show Arkhom Termpittayapaisith, asked the Civil “That’s history,” said Patee last month. our responsibility,” he said. Aviation Authority of Thailand (CAAT) to “We have an abundance of pilots, many of Patee also denied suggestions that act against airlines with “troubled” flight whom joined after the incident earlier this its on-time performance or flight safety schedules. CAAT chief, Chula Sukmanop, year. They support our growth.” standards were caused by its aged aircraft, said Nok Air was one of the worst offenders He said the carrier’s flight delays were poor maintenance and over-utilization of its and warned its management that its mostly beyond the airlines’ control and planes. operating permit could be suspended. were caused by the rainy season. “Frankly, The bulk of Nok Air’s fleet is relatively That did not eventuate, but Patee was there was nothing much we could do about young, he said, with new B737-800s entering more than unhappy about being it. Such problems are not unique to service at the carrier in the past few years, singled out. “Let’s be fair, we are Nok Air. They are experienced while older aircraft are around eight years not as bad as some people, by other airlines. Nok Air is, old. especially on social media, unfortunately, singled out,” he Nok operates 22 B737-800s, eight have portrayed us to be,” said. Bombardier Q800 NextGen turboprops and he told Thai media. “We are Defending his airline, two ATR 72 turboprops. He said Nok aircraft subject to hate reports and Patee quoted figures are maintained by Lufthansa Technik, under comments that in many cases from global flight tracker, global standards. are trivial. They have been FlightStats, which had ranked “On a daily average, we fly nine hours blown out of proportion by both Nok Air seventh out of 40 for each aircraft, and we can ramp up to 11 traditional and social media.” low-cost carriers in hours as per industry practice,” he said. Earlier this year, a pilot Nok will launch flights to Kunming and shortfall at Nok, provoked by a Guangzhou next month, adding to its regional mass walkout of cockpit crew, destinations of Yangon, Hanoi and Ho Chi escalated into a pilot strike. Minh City. “China is clearly a very big market Cockpit crew said they with significant traffic flow,” said Patee. ■

Etihad and Jet still good friends

All is well. That was the message from Abu Both partners “continue to enjoy a strong, medium and long-term has always been part Dhabi’s Etihad Airways and India’s Jet healthy relationship since the forging of of the agreement. Airways last month after India’s Economic the partnership three years ago”, a joint “It was planned for Etihad to provide Times reported the two airlines were headed statement said. “The two airlines benefit from support with personnel or executives until in different directions. each other’s networks and management Jet Airways was able to source appropriately All the Etihad senior executives seconded skill sets. Sharing resources for the short, qualified people. Neither airline has moved to Jet “had quit” the Indian carrier in the last away from this philosophy. Etihad Airways 18 months to take up other positions within has representation on the Jet Airways’ board the Etihad Group, the story said. of directors, and all decisions at board level They included former Jet chief executive, are made collectively.” Cramer Ball, now CEO at Alitalia; Martin Etihad Group chief executive , James Drew vice president cargo; Rajeev Nambiar Hogan, and Etihad’s chief financial officer, vice president sales; Renyl Rauf, vice James Rigney, remain part of Jet Airways’ president financial planning, reporting and board, the airline said. projects as well as consultants Roy Kinnear Etihad bought into Jet three years ago, now CEO of Air Seychelles and Rangesh when the Indian carrier was losing money. Embar. The newspaper said the management The airline has been turned around and is in changes meant control of Jet had returned to profit. “Etihad Airways entered into a strategic its founder, Naresh Goyal. tie-up with Jet Airways to be part of one of the Neither Jet nor Etihad, which has equity world’s biggest economies,” the statement of 24% in Jet, were impressed by the report. added. ■

NOVEMBER 2016 / ORIENT AVIATION / 7 ADDENDUM

Chinese investors join Virgin Australia board

Two Chinese investors, who bought into Virgin The Nanshan Group, a huge Chinese international engagement. Australia (VA) earlier this year, have named the conglomerate with interests that range When Qi and Lu join the VA board, Virgin’s executives that will join the Australian airline’s from mining to property and aviation, has directors will increase to 11. The appointments board. HNA Group, parent of China’s fourth nominated Chien-tsung Lu as its VA board are expected to be ratified at VA’s annual largest carrier, Hainan Airlines, has chosen director. Lu is vice-chairman of the group’s general meeting on November 16. The two its chief innovation officer, Nang Qi, as their regional carrier, Qingdao Airlines, and Chinese companies own 40% of Virgin VA director. Qi was previously the company’s a former dean of Nanshan Aeronautical Australia after the airline negotiated a $1.1 deputy general manager of finance and College. At Qingdao, Lu was responsible for billion capital raising to manage its debt and president of HNA’s import and export business. flight operations, revenue management and boost its balance sheet. ■

ATR pursues market share with reluctant China buyers

ATR Global head of sales, John Moore, Chinese state-owned aerospace and defence forecasts that regional traffic demand in company that builds the MA-60. AVIC is an emerging countries like the Philippines will ATR supplier so the Europeans believe there grow eight times faster than in more mature should be “a give and take on industrial economies and that turbo props often are cooperation and commercial access to the the only way to access remote airfields in market”. several countries in the region. Another big China challenge is the Speaking to Orient Aviation in Boracay AOC application process, often stalled and last month, at the entry into service of ATR’s complicated, and shortages of qualified very first high-capacity ATR 72-600 at Cebu pilots. “Until I can find pilots I’m not going Pacific Air, Moore said ATR predicted the to buy your airplane,” Moore has been told Asia-Pacific would have 750 new turbo prop more than once in China. “We’re looking at aircraft in the next 20 years, with 600 new new ways as a manufacturer to supply that routes created, excluding China. food chain,” he said, including manufacturer “There are still a lot of underserved or driven initiatives to dispatch flight deck un-served airports across the Asia-Pacific,” training crews and expanding its regional said Moore. “In the Philippines, only 30 training centres in Bangkok and Singapore. of more than 100 airports can accept Safety remains the top priority at ATR jets.” However, it is still a difficult market and its turboprop rivals, specifically after at the moment for ATR with the fluctuating several high-profile accidents in the past two dollar acting as a drag on sales. “It’s had a years in Taiwan, Nepal and Indonesia that led slowdown effect but overall, there is 4%-5% industry regulators and the Association of growth annually in the region,” he said. Asia Pacific Airlines to highlight a surge in ATR holds 90% of the regional aircraft the Los Angeles native laughed. “So we’ve turboprop incidents. sector in Southeast Asia, with 337 ATRs in been building up our image and visibility. We Most of the accidents and incidents service at 60 carriers. Its largest markets have not closed any deals, but we’re making were caused by pilot error. In response, ATR are Indonesia, Malaysia, the Philippines, progress.” Moore added ATR would record has created a dedicated safety department India and Thailand and its largest customer another first for the company in China by whose staff report directly to the CEO. is Indonesia’s Lion Air. Lion Air’s Wings exhibiting at Air Show China in Zhuhai this “We keep our ears and eyes open. If we division has ordered 100 ATRs, with above month. sense that there are weaknesses we focus 50 delivered to date. He said there are very few regional on airlines that may need extra help or But China is not proving to be as airlines flying regional networks in the extra support. We have to be a very active good a market for ATR as elsewhere in the Mainland and that they make up just below participant in the whole safety situation and Asia-Pacific. There are no ATRs in service 3% of the market. “The challenge in China processes,” Moore said. on the Mainland, a fact which ATR hopes will is to find specific markets and regions small Under the leadership of new ATR CEO, change now it has opened a representative enough for turboprop operations. I don’t Christian Scherer, the Franco-Italian OEM office at Beijing’s Tianzhu Airport. think we’ll sell ATRs to China Southern or Air remains hell-bent on defending its market Moore said: “A few years ago, if you went China. Our potential customer is going to be share, especially in the Asia-Pacific. Last to a Chinese airline or a Chinese government an entrepreneur or a smaller airline started month, Air India’s regional airline confirmed bureau and mentioned ATR, they would give by a local province,” he said. its intention to add ten ATR72-600s to its you a puzzled look and be surprised when Locally, ATR must compete with Aviation twelve in-service ATR42/72s. By Dominic you said the aircraft was still in production,” Industry Corporation of China (AVIC), the Lalk in Boracay. ■

8 / ORIENT AVIATION / NOVEMBER 2016

NEWS BACKGROUNDER

Building on an extraordinary performance record

Air New Zealand, producing record profit after record profit, has been on a major international network expansion drive in the last 18 months. The next step in its strategy is to persuade Australians to abandon major rival, Qantas Airways, and fly Air New Zealand to the Americas via Auckland.

Tom Ballantyne reports

ir New Zealand results, for the year ended June (Air NZ) CEO, 30, saw it report a record pre-tax Christopher Luxon, profit of $475 million and a net has never been shy profit of $332 million. Earnings about his ambitions. guidance for the year is that A“We’re incredibly proud of our Air NZ is will deliver its second achievements in the last five or third best profit result in the years,” he told Orient Aviation airline’s 76-year history, despite last month. “We don’t just the fact that competition and want to be a good Australasian capacity has been flowing into company. We actually want to New Zealand from the U.S., the become a truly great and world Gulf and China at unprecedented class organization.” levels. If the carrier’s results are Competition is not a concern, anything to go by, Luxon is well said Luxon. “We have dealt with on the way to achieving that Middle Eastern competitors, goal. “We’ve had 15 years of Chinese competitors, Australian continuous profitability. In our last and American competitors and four years, we have set straight we have done exceptionally well record results commercially in the last 15 years. We love year-on-year. We delivered 70% competing with everyone and growth in our profitability with anyone,” he said. profits of US$628 million over The latest newcomer that period,” he said. scheduled to arrive in New “What we have done Zealand is China’s Hainan is impressive, but how we Airlines flights from Shenzhen have gone about it is what is to Auckland in January. It does really important. We have put not faze Luxon, who pointed out profitable growth back at the that his carrier has joint ventures heart of this company. So our We want a slice of the Australian with Air China and Cathay Pacific revenues are up over 9%. Our Airways. capacity and our network have long-haul market, especially the traffic “When you go to Shanghai, grown in the order of 12%. Our that heads from Australia to North there is a big enough catchment. international long-haul network and South America. We are saying It’s a country in its own right so has expanded by 16%. whether someone is coming at “Our Tasman traffic is up over you can transit and hub that traffic very you from Chengdu or Tianjin or 4% and when you think about efficiently through Auckland elsewhere it doesn’t really impact GDP growth in Australia and NZ, us,” he said. that’s a fantastic result.” Christopher Luxon There is a bigger picture as far The carrier’s latest annual Air New Zealand CEO as Luxon is concerned. “There’s a

10 / ORIENT AVIATION / NOVEMBER 2016 NEWS BACKGROUNDER

Follow that bird When Air New Zealand (Air NZ) launches transit through Auckland Airport rather than check in internationally, go straight through to a new marketing campaign you can be sure it make a domestic-to-international change at Auckland and proceed as a transit customer. will quickly become a talking point and that Sydney Airport. “Many of them would be There is no worry about customs or border was definitely the case when the Auckland- doing a domestic transfer after arriving at an control and you can seamlessly board your based carrier launched a multi-million airport like Sydney where it would take them long-haul flight from there,” he said. dollar Australia-wide television advertising half-an-hour to get across to the international While the campaign is targeted solely campaign last month. terminal and a lot of mucking around,” said at Australia for now, Dave the goose may be Its content had viewers in stitches. Aimed Air NZ CEO, Christopher Luxon. adapted for use in other overseas markets such at attracting more Australians to travel with “Whereas with Air New Zealand you can as Japan, China and the U.S., the airline said. the carrier to North and South America via Auckland, the campaign features a goose called Dave with his voice provided by veteran Australian movie star, Bryan Brown. Essentially, instead of flapping its own wings for days to cross the Pacific, Dave boards an Air New Zealand flight and does the journey in just over a few hours, where he enjoys the benefits of the carrier’s on-board service. Speaking at the campaign’s launch in Sydney, Brown said he accepted the role because no one had ever asked him to play a goose. “What’s the one person that does not need to fly?” Brown said. “A bird. So if a bird’s flying Air New Zealand it’s got to be good.” Air NZ wants Australian passengers to

world that has 7.4 billion people the competitive thing is a little we have been upgrading to new as Vancouver, San Francisco, in it and it’s going to go to nine overplayed. I am very confident modern aircraft in our fleet,” he Houston, Los Angeles and Buenos or 10 or 11 billion by the end of in the long, medium and even said. Aires,” he said. the century, depending on which short term performance of our “We were first to launch the On that other matter of his forecast you believe,” he said. business,” he said. B787 Dreamliner -9. It has been airline’s decision to sell its holding “What Australia and New At the same time that a superb aircraft for us. We did in Virgin Australia earlier this year, Zealand have to offer as a revenue has been growing at 16% more flying on our long- Luxon said: “Both companies tourism proposition is immense. Air NZ, costs are being carefully haul fleet last year, but our fuel are incredibly committed to We are living in a world that is controlled. “Fuel has helped consumption was only 12% up everything that has been quite increasingly densified, increasingly us a lot, but we have the most and that’s purely speaking to the successful for all of us. We look middle class. There is a tidal wave modern fuel efficient fleet in this fuel efficiency of those aircraft. In forward to deepening that in the of demand sitting out there and part of the world. We derive a lot the next three years we will spend coming years. coming our way whether you of benefits from that, including another $2 billion on our fleet.” “The reality is that our are sitting in Asia, the Americas a tripling of our cash flow and, Since mid-2015, Air NZ relationship with VA always or Australasia. And it is coming obviously, an upgrade in our has inaugurated services to has been compartmentalized whether we are ready or not.” investment grade rating,” Luxon Singapore, Beijing, Houston, into three, so us coming out Luxon conceded things said. Buenos Aires, Osaka and Ho Chi of the shareholding is purely may be “a bit more choppy” Air NZ operates 56 jets: 29 Minh City. Now it wants a bigger a commercial and investment this year as a result of additional A320-200s (with 13 A320s and share of the Australian market. decision. The alliance has gone competition. He said that for Air A321neo on order), three B767- Already, two of Air NZ’s from strength to strength. There NZ it means there will be a period 300ER, eight B777-200ER, seven newer routes are attracting is real mutual value for both of adjustment as demand and B877-300ER and nine B787-9 Australian traffic: 40% of organizations. supply regains equilibrium. Dreamliners, with more to arrive travelers on its flights to Buenos “John (VA chief executive “In the short term, we have at the carrier. Aires and 20% of passengers John Borghetti) and I are hugely had a tremendous amount of “All of that commercial to Houston are Australian. committed to the alliance. competition showing up in New success is important because it “The challenge we have is that And then on the third side, we Zealand in a very concentrated is allowing us to plough these only four out of ten Australians maintain a lot of Virgin aircraft at period of time. But let’s get a profits straight back into the understand we fly beyond New our maintenance facilities in New little bit of perspective. I think company. In the last four years Zealand to destinations such Zealand.” ■

NOVEMBER 2016 / ORIENT AVIATION / 11 MAIN STORY MORE ACTION, LESS TALK Aviation industry members must work together to identify and repel threats to airline and airport operations experts told delegates at the annual International Air Transport Association Aviation Security conference last month.

Tom Ballantyne reports from Kuala Lumpur

our principles to reduce terror attacks in aviation “Speed is of the essence. Threats emerge quickly. And were presented in a landmark address by the they evolve fast,” de Juniac told the hundreds of delegates at director general of the International Air Transport AVSEC. Association (IATA) director general, Alexandre de It became clear at the AVSEC conference that airlines Juniac, at the industry’s annual AVSEC conference, were not alone in wanting speedier reforms to the industry’s Fheld this year in Kuala Lumpur. security practices and regulations. The IATA strategy aimed to reduce threats to airline and International Civil Aviation Organization (ICAO) airport processing systems, eliminate attacks on air secretary general, Liu Fang, said all nations should work passengers at airports and when over flying conflict zones, more closely to combat security breaches and attacks. At identify terror focused staff who have insider information ICAO’s triennial conference in September, she said, member and upgrade the accuracy and speed of sharing passenger states agreed to fast track a new global aviation security plan. information between airlines and governments. The United Nations Security Council unanimously has

Paradoxically, the good that aviation brings also makes it a target for terror. No single entity has all the answers. That’s why partnerships are essential to address our major security challenges with the speed needed to stay a step ahead of those who would do our industry harm

Alexandre de Juniac International Air Transport Association director general and CEO

12 / ORIENT AVIATION / NOVEMBER 2016 MAIN STORY

Civil aviation particularly is at risk of cyberattacks because all parts of the industry are highly interdependent. Present cyber defence systems are not adequate for dealing with this rapidly evolving threat. ICAO will be studying new preventive measures to deal with cyberattacks. ICAO will also work to develop an international framework from which civil aviation stakeholders can address cybersecurity threats effectively

Liu Fang International Civil Aviation Organization (ICAO) secretary general

adopted resolution 2309 that calls on all States to work with each other and ICAO to continuously adapt measures to and then radicalized to meet the “ever-evolving global threat” of terrorism, ICAO actually carrying out an attack on a said. self-initiated basis.” “The new plan will create a dependable and co-operative He said the UN security resolution agreed in September framework that allows States to move in line with the was a positive step, but there was not much time to “plan industry and law enforcement stakeholders,” said Liu. “It where we are going to go and what we are going to do or how will help define the roles and responsibilities of all the we will accomplish this,” he said. agencies and lead to more progressive and co-ordinated “We need to have the oversight to assure each other that aviation security enforcement.” A draft of the plan will be the right measures are being undertaken and that countries available in May next year with a view to making it available that need assistance with regulatory oversight receive it so for consideration by the ICAO Council shortly after that, they are not left behind.” Liu said. At the conference de Juniac elaborated on the six priority The director-general of the European Commission’s areas identified by IATA for addressing security challenges: directorate-general for mobility and transport (DG MOVE), Conflict zones: Timely and accurate information is Henrik Hololei, told AVSEC delegates that following the needed to support risk assessments when overflying conflict Paris, Nice, Brussels and Istanbul terrorist attacks, European zones. “The ICAO conflict zone information repository was citizens ranked the issue of security as their number one an initial step. But it is not the solution. We need to evolve to priority. a system that can function on a continuing basis with a free “It has been said many times that we must never waste a and fast flow of useful information. Information sharing is good crisis. So, we should use UN Resolution 2309, and the not just about conflict zones. If a government has any events of the past 12 months, to provide the necessary information about a risk to an airline’s operation, sharing it momentum to increase aviation security,” he said. with the airline could save lives. There is a responsibility to Speaking on a panel on ‘Terrorism and Radicalization’, get that information to the airline quickly and by effective the U.S. Transportation Security Administration (TSA) means,” said de Juniac. assistant administrator, office of global strategies, Paul Landside security at airports: “Recent attacks in Fujimura, said: “Terrorism continues to evolve and change. Brussels and Istanbul have brought this vulnerability to the There are new actors appearing and people are being fore. Local authorities must use intelligence to keep terrorists radicalized through social media and the Internet. The lone far away from airports and keep public areas free from threats. actors are harder to catch and difficult to disrupt. We are also In parallel, the industry was working on solutions to reduce seeing a shrinking timeline from when they are first recruited risk by processing passengers more quickly, said de Juniac.

NOVEMBER 2016 / ORIENT AVIATION / 13 MAIN STORY

Insider threats: “Eight million people are employed in air transport, so the threat from insiders is a big challenge. A IATA’s aviation security strategy perfect vetting system has yet to be invented. So intelligence * Risk-based measures to ensure that limited resources are analysis—from governments—is our most potent tool to applied where the threats are greatest. identify threats, especially from radicalization,” said de * Information sharing among governments and with Juniac. industry to enable effective risk-assessments. Cyber security: Nimble layers of protection—a security * The implementation of global standards in security culture—and advanced detection capabilities are needed. systems worldwide to support effective collaboration They must be powered by intelligence and information between all parties in all locations. sharing. Cooperation with governments and across the * Capacity building supporting the mutual recognition of industry is essential, said IATA. standards to improve effectiveness and efficiency. Harmonization of Advance Passenger Information (API) and Passenger Name Record (PNR) information requirements: Airlines contribute to intelligence gathering multi-pronged approach of risk based security, technology, with API and PNR information. Global standards existed for mutual recognition and co-operation and a security culture the collection and provision of this information. These are to improve landside security. “Over-regulation is not the maintained by IATA, the World Customs Organization and solution and one size does not fit all. Different situations ICAO. require different solutions.” “Despite the global standards for API and PNR, there Director general of Airports Council International are far too many exceptions to data collected and it’s (ACI), Angela Gittens, said: “Expensive technology is not transmission to governments. The complexity does not make always the solution.” Greater collaboration, improved us more secure. In fact, it could lead to risk. The situation is training and the implementation of a security culture could already difficult enough. And it could get much worse. There prove to be more important, she said. is no international agreement that spells out obligations for “Vigilance and security awareness is one of our great handling the exchange of such information,” said de Juniac. defences. All staff should have acquired knowledge that will Security checkpoints at airports: Airport checkpoints allow them to detect, take note and report suspicious must be effective and convenient—the goal of the joint behaviour.” IATA-ACI Smart Security initiative. “Processes have ACI’s practical solutions for improving security include improved, but can still be inconvenient and even intrusive. reducing crowds and queues, patrolling, surveillance and Smart Security is helping with a growing footprint at intelligence sharing. The recommended practices, including airports. But we need to see much faster progress,” said de automated screening lanes, advanced X-ray equipment, Juniac. centralized image processing for remote cabin baggage Given the landside attacks at Brussels and Istanbul, screening and speeding up passenger processing were being airport security was a major topic of discussion at AVSEC. applied at airports worldwide. Hololei said: “I must be clear and state that landside security “Cyber security is high on the agenda. ACI has launched cannot be the sole responsibility of the aviation sector. an airport IT benchmarking tool, which allows airports to Landside goes far beyond the airport terminal.” improve their IT security,” Gittens said. He said the European Commission favoured a Liu said all stakeholders wanted improved cyber security. “Civil aviation particularly is at risk of cyberattacks because all parts of the industry are highly interdependent,” she said. Terrorism continues to evolve “Present cyber defence systems are not adequate for dealing and change. There are new actors with this rapidly evolving threat. “ICAO will be studying new preventive measures to deal appearing and people are being with cyberattacks. ICAO will also work to develop an radicalized through social media and international framework from which civil aviation the Internet. The lone actors are harder stakeholders can address cybersecurity more effectively.” From cyberattacks to airport landside attacks, there was to catch and difficult to disrupt. We are agreement at AVSEC that the key to meeting the security also seeing a shrinking timeline from challenge is co-operation among all effected sectors. De Juniac said security is fundamentally a government when they are first recruited and then responsibility but making flying ever safer and more secure radicalized to actually carrying out an “is engrained in the DNA of all air transport stakeholders”. attack on a self-initiated basis “Paradoxically, the good that aviation brings also makes it a target for terror. No single entity has all the answers. Paul Fujimura That’s why partnerships are essential to address our major U.S. Transportation Security Administration (TSA) security challenges with the speed needed to stay a step ahead assistant administrator, office of global strategies of those who would do our industry harm,” he said. ■

14 / ORIENT AVIATION / NOVEMBER 2016 B:212 mm T:202 mm S:182 mm

FROM SINGAPORE TO FARTHER A BETTER WAY TO FLY. B:283 mm S:253 mm T:273 mm

Boeing builds and delivers the most complete fl eet of long-range commercial airplanes, enabling airlines to offer nonstop, point-to-point service to virtually anywhere in the world. What’s more, Boeing’s long-range airplanes are renowned for their effi ciency and comfort, and consistently ranked fi rst by frequent fl yers. Going farther to make travel easier. That’s a better way to fl y.

boeing.com/commercial

Job Number: 10549738 Version: B Client/Brand: Boeing/BCA Date: 10-17-2016 12:15 PM APPROVALS File Name: 10549738vB_BCA_Leadership_Singapore_202x273.indd QC: Steve Jablonoski Bleed: 212 mm x 283 mm Gutter: None Publications: Orient Aviation PA: Steve Hutchings PR: Pat Owens Trim: 202 mm x 273 mm Folds: NoneNone Notes: Bill to: 10483763 RET: Greg Olsen PP: Marybeth Oskin Safety: 182 mm x 253 mm Media/Color Sp: PRINT/4/c AB: Kathleen Candelaria TM: Deanna Loperena/Kate Vilt Scale: 1=1 Country: None Vendor: None Actual Size: 202x273 Language: English Output%: None GCD: Eugene Varnado Colors: Cyan, Magenta, Yellow, Black AD: Sarah Frazer Fonts: Helvetica Neue (75 Bold, 55 Roman; Type 1) CW: Chloe Lebamoff AE: Megan O’Malley/Katie Bunimovich ALL CONTENT WITHIN THIS FILE IS FOR OUTPUT ONLY BY END PRINTER/VENDOR. CHANGES, SHARING AND/OR DISTRIBUTING CONTENT IN WHOLE OR IN PART ARE STRICTLY PROHIBITED. LICENSING RIGHTS AND APPROVALS MUST BE REQUESTED AND APPROVED TO/BY FCB CHICAGO. Images: 10549738c07vA_R0_BCA_Singapore_7x10.tif (364 ppi; CMYK), Boeing_white_50mm.eps NEWS BACKGROUNDER

New Philippines president improves operations at Manila airport says Cebu Pacific

By Dominic Lalk in Boracay

ongestion at he said. “Anywhere within Manila’s Ninoy 25kms of the city will be good Aquino International for us. It can be in Sangley Point Airport (NAIA) has in Cavite or in Manila Bay. Both greatly eased since are perfect for us as long as the Cthe election in September of the government makes a decision controversial new president of before the end of the year.” the Philippines, Rodrigo Duterte, Independently, it has been the CEO of low-cost carrier, reported that the Manila Bay Cebgo, told Orient aviation last option, on reclaimed land, month. has been rejected by the Since September, after the government. Lao and his parent election of the new president, airline, Cebu Pacific oppose said Alexander Lao, “this converting Clark Airport into the particular administration has new Manila airport because it put in place the policies we have is 100kms north of downtown suggested for the longest time, Manila. The former military base including the removal of general has no mass transit network to aviation from NAIA. serve passengers. “All of a sudden, airlines “Clark is too far. In fact, if have improved their on-time Clark was designated Manila’s performance from 40%-50% capital airport it would be the to approximately 70%-80%. farthest primary airport in the Frankly speaking, a very simple world,” said Lao. move by the government NAIA’s limitations are not brought big benefits.” Since the election of the new president, the only problems Lao has to In the lead up to the manage in running Cebgo. president’s imposed policy said Alexander Lao, “this particular “Seventy per cent of airports changes, British consultancy, administration has put in place in the Philippines are not NATS, submitted more than 100 the policies we have suggested for jet-capable,” he said. “We recommendations to increase need the ATRs to service these capacity at NAIA, based on the longest time, including the removal airfields. The runway at Caticlan its experience of expanding of general aviation from NAIA (Boracay) used to be about 1,000 Mumbai’s Chhatrapati Shivaji metres long, so we needed a International Airport. Both Alexander Lao turboprop to fly there,” he said. airports have a major problem. Cebgo CEO Shuttles to Caticlan are Cebgo’s They are contained by their bread-and-butter business, with urban sites. at Manila where today we’re at is flexible about the site for up to 12 daily flights from Manila Lao said NATS engineers 40 movements per hour. But the city’s much needed new and Cebu to the resort island. increased capacity at Mumbai maybe we can go up to 50 or international airport. “We don’t Speaking to Orient Aviation from 36 movements an hour to even 60 movements”, he said. mind where the new airport is after the arrival of the first 50, so he “hopes to see the same The energetic CEO also built as long as it’s near Manila,” ATR72-600 into the Cebu Pacific

16 / ORIENT AVIATION / NOVEMBER 2016 NEWS BACKGROUNDER

Air (CEB) group fleet, Lao, who 28 inches. capacity, Lao believed CEB Ancillary sales account also is vice president commercial Lao added: “The Required must be open to all revenue for 18%-20% of the carrier’s at the parent airline, said he Navigation Performance- opportunities. “Our online total revenue, Lao said, so GDS believed in the future of the Authorization Required (RNP sales have grown significantly. and CEB have opportunities to turboprop and that it remains AR) and Vertical Navigation Today, we’re at 60%. We capture these extra dollars. critical for the development (VNAV) capability of our new pioneered mobile check-in Challenges remain for both of new markets for his budget ATR 72-600 fleet will increase in the Philippines,” he said. airlines. Intense competition fuels carrier. airfield access and facilitate more Nevertheless, Lao is not ready to low fares and depresses yields. “Being in charge of a low- efficient air traffic management.” write off the traditional global Philippines AirAsia has returned cost carrier (LCC), I have to focus, Cebgo and parent CEB will distribution system (GDS). to expansion and full service focus, focus on lowering costs,” progressively replace its fleet of “GDS are pretty expensive. carrier, Philippine Airlines (PAL), Lao said. “We ordered the new eight ATR 72-500s, configured We want to encourage as many has reinforced its commitment to high-capacity ATR because we with 72 seats, with 16 ATR direct sales as we can,” he said. the domestic inter-island market could fit in six more seats and 72-600s with 78 seats. Deliveries “I guess the challenge for us is: with a Letter of Intent for “up to pass on those savings to our of the -600s will run until 2020. ‘How can we make our brand twelve” Dash 8-Q400s from ATR customers.” CEB, now the Philippines’ largest more popular in non-Filipino rival, Canada’s Bombardier. CEB’s first ATR72-600 airline, is continuing its quick dominated markets’?” Lao said the pilot shortage will be flown by Cebgo and growth trajectory with six A319s, “In China we don’t use a lot is challenging, but the situation is part of the airline group’s 36 A320s, six 436-seater A330s of GDS, mostly because we see a has improved for CEB and his 2015 $673-million order for and the eight ATR 72-500s. lot of web savvy customers. We LCC since they invested in the 16 of the type. All the aircraft Between 2016 and 2021, CEB know there also is a lot of web Philippine Academy for Aviation have been bought under direct expects to take delivery of 32 savviness in Japan and South Training, a joint-venture with purchase agreements and will be A321neos, two more A330s and Korea, but the markets we are simulator manufacturer, CAE, fitted with a new high-density 16 ATR 72-600s. targeting there are mainly group near Clark International Airport configuration and a seat pitch of To fill this current and future markets, so we need the GDS.” in Luzon. ■

NOVEMBER 2016 / ORIENT AVIATION / 17 COVER STORY

FROM HAWKER TO FLYING HIGH Juneyao Airlines chairman Wang Junjin and his two brothers started their working lives as roadside hawkers. The clever trio rode China’s economic wave and along the way the business of aviation caught their eye. Aerospace is now part of the Juneyao conglomerate with middle brother Junjin running a full service carrier that is one of the fastest growing airlines in China.

Dominic Lalk reports from Shanghai

18 / ORIENT AVIATION / NOVEMBER 2016 uneyao Group chairman and owner of Shanghai’s to enjoy the success of the Juneyao Group. He died of cancer Juneyao Airlines, Wang Junjin, started his working in 2004 , aged 38, after he bequeathed the group’s chair life as a teenage hawker of milk and yoghurt, to Junjin and the vice-chair to Junhao, the youngest of the alongside his two brothers, in the poor fishing siblings. village of Dayuzhen in Zhejiang province. Today, Juneyao Airlines was officially established a year later, theJ 47-year-old entrepreneur is ranked 180th on China’s although the carrier’s maiden flight did not take off from its Rich List and the Juneyao Group he leads is ranked 177th on Shanghai Hongqiao base until 2006. the China Top 500 Companies List. Juneyao Group has more than 10,000 employees. It Junjin and his brothers, Junyao and Junhao, were always listed on the Shanghai Stock Exchange in May 2015 for determined to move to the big city. Junyao, the eldest of US$1 billion. Junjin’s estimated $1.42 billion fortune the three, dropped out of school to become a hawker. His includes 26% of the group’s airline and 14% of listed brothers soon joined him and set off on their path to a better department store group, the Wuxi Commercial Mansion life. Grand Orient Co. Wang Junyao’s bachelor son, 28-year-old After they arrived in Shanghai, where they continued Wang Han, was left 27% of Juneyao Airlines by his late to peddle dairy products, they expanded their offerings to father. stickers, badges and flags as the 1990 Asian Games in Beijing Wang said he always knew that if his airline was to approached. It was the first time the Games were to be held succeed, it would have to be a different product in the in China and the clever young trio fed pent-up demand for market. It must have a reputation for quality that set it apart patriotic souvenirs in a market with little competition. The from the Big Three state-controlled carriers. enterprise made the Wangs their first million. “Competitiveness is very important for private “Sleeping over a dozen hours companies like us if we want under the bench on trains was to win a share in the aviation a common thing,” Wang told We’ve also been cooperating market. We have been focusing Orient Aviation in Shanghai last with China Eastern for a long time. on quality services to improve month, as he revealed how the our competitiveness. For brothers built their businesses. It’s a mutual relationship, instance, we’ve installed more In 1991, they founded the but we’re in talks with many comfortable seats on our planes Juneyao Group in Wenzhou. airlines about how we could move with more leg room.” he said. On July 28 of that year, as an “In aviation in China today, Antonov An-24 touched down in forward by working together there is a lot of room for airlines Wenzhou, they made their first to improve the quality of their Wang Junjin foray into aviation—China’s first services, for example on-time Chairman Juneyao Airlines business jet charter company. flight performance. We pay Juneyao transported attention to details that others entrepreneurs, business associates and anyone who could often neglect. In this way, we are maintaining above average afford it on their business jet. The first services were between service.” Wenzhou and Changsha followed quickly by flights to other Juneyao Airlines is determined to be different. It has domestic Mainland destinations. In typical Chinese fashion, developed a solid reputation with Mainland business and the brothers expanded their empire at breakneck speed by leisure travellers alike. The airline likes to call itself a “high- investing in real estate, financial services (including their value carrier”. It invests up to 20% more on in-flight meals own bank), retail and commerce subsidiaries and, of course, and beverages than the Big Three airlines. dairy products. And it works. When your Orient Aviation correspondent “In the past three decades, since China launched its took a Juneyao flight from Shanghai to Hong Kong reform and opening up policy, the Juneyao Group has following this interview, the service included a bilingual benefited from the government’s preferential policies to menu with a choice of Chinese or Western cuisine. Neither encourage private undertakings. As private company owners, meal choice nor bilingual menus are available on your we are not solely relying on ourselves to achieve success. We average chinese legacy carrier flight. happen to have been born at the right time, “ said Wang. Wang said Juneyao allows its passengers to check in late “If not for the great tide of reform and opening up, when a flight is delayed, and will inform drivers, through which awoke the entrepreneurial spirit hidden in our hearts, SMS, of its registered business passengers’ arrival to make I might still be an honest fisherman like people in my father’s sure they are boarded as soon as their flight has landed. generation.” Fortune has been favourable to their labours, After flying for two years out of Hongqiao, Juneyao the Wangs believe. They are firm believers in corporate opened a second base at Shanghai Pudong to avoid social responsibility and fund charities including a poverty congestion at smaller, downtown Hongqiao. In 2015, it held alleviation programme for migrants in the Three Gorges 8.65% of the market at the two airports, putting it ahead of Dam area. flag carrier, Air China. It is the third largest airline in the city Sadly, the eldest brother of the trio, Junyao, has not lived after China Eastern Airlines and China Southern Airlines.

NOVEMBER 2016 / ORIENT AVIATION / 19 COVER STORY

economic considerations”. Committed to safety If the posters lining the walls of Juneyao’s headquarters at Hongqiao are an indication of its fleet planning, the B787 Safety remains the top priority at Juneyao. The appears to have a good shot at breaking Airbus’ monopoly airline has a good record and passed the International Air Transport Association Operational Safety Audit (IOSA) in at the carrier. Boeing has definitely done its Chinese July 2009. The decade has only seen one minor incident homework, as carrier after carrier orders the Dreamliner. at the carrier, albeit with wide-ranging consequences. Earlier this year, Kunming-based Ruili Airlines celebrated its In 2011, the South Korean pilot of Juneyao Flight 1112 second anniversary by firming an order for six -9s and a few out of Shenzhen disregarded six consecutive orders from weeks later Shenzhen start-up, Donghai Airlines, ordered Hongqiao Air Traffic Control in seven minutes to abort his five B787s. HNA Group’s Lucky Air will receive -9s as approach, after another incoming aircraft had declared a China’s first long-haul low-cost carrier (LCC), operating out fuel emergency. of Kunming, with a secondary base planned from 2020 at The Civil Aviation Administration of China (CAAC) Chengdu’s under construction Tianfu International airport. permanently revoked the pilot’s license and temporarily Wang said Juneyao wanted to start with ten widebodies, suspended Juneyao from recruiting foreign flight crew after imposing a 10% capacity curb on the carrier for three but he stopped short of listing their inaugural destinations. months. It also ordered Juneyao to conduct at least 40 As the airline continues to strengthen its ties with Star hours of ground theoretical training courses for its foreign Alliance, it would be logical for Juneyao to feed into the pilots within a month of the incident. alliance’s hubs at Frankfurt, Chicago, San Francisco and Juneyao has since returned to the CAAC’s good Vancouver. Wang has ruled out purchasing the “Made in books. Foreign pilots make up approximately 15% of its China” ARJ21. He said the regional jet was designed to flight deck crew, with the majority of them recruited from fly 70-80 passengers on short hops and was too small for South Korea and Mexico. Juneyao has pilot pay packages Juneyao given its Shanghai base. of up $300,000 for an A320 captain, according to postings Juneyao’s passenger numbers have grown at an average at ASSA, a Hong Kong-based pilot recruiter. The airline annual rate of 19.1%, with 10.5 million passengers boarded employs a fair number of female flight deck crew, a progressive approached for a Mainland carrier. last year. Its operation is heavily focused on its Shanghai hubs with 88.2% of its passengers handled at the two airports. In 2015, passenger numbers grew 29.7% year-on- In its first year, Juneyao Airlines flew three GECAS- year, with domestic growth of 28.72% and international leased A320 Family aircraft on five domestic routes. Its expansion of 61.33%. Like many of its Mainland rivals, it Airbus fleet doubled in the second year, then grew to 17 lost ground in Hong Kong, Macau and Taiwan, with an aircraft in 2010, 30 in 2012 and 50 in 2015. At the end of 18.55% decline in passengers carried. 2016, it expects to have 41 A320s and 16 A321s, which will The airline has been in the black for the last decade. make it the airline with the youngest fleet in China, with its In 2015, Juneyao reported a net profit 1.05 billion yuan planes averaging 3.8 years in age. (US$162 million). As of June 30, its net profit was 706 Until now, Juneyao has stayed loyal to Airbus, but million yuan, a 41% year-on-year improvement. It was this could change when it launches long-haul operations achieved on revenue of 4.75 billion yuan against four billion to Australia, the U.S. and Europe from 2020. Wang said yuan in costs. Juneyao Airlines’ total assets are $2.9 billion the airline is considering the A350 and the B787 for its yuan against $1.7 billion yuan in liabilities. long-haul expansion, with an announcement due before The airline serves 69 destinations: 51 in Mainland the end of the year. As for the A380, the chairman said China, 14 international destinations, as well as “the regions” Juneyao “will not consider this based on efficiency and of Hong Kong, Macau, Taipei and Kaohsiung. It has a

20 / ORIENT AVIATION / NOVEMBER 2016 COVER STORY

particularly strong presence in Thailand, with multiple daily even by year-end. Juneyao and Jiuyuan do not codeshare or flights from Shanghai to Bangkok, Phuket, Chiang Mai and interline due to IT integration issues. Krabi. Following a relaxation of visa policy in January 2015, After three years of negotiations, at the urging of Air Japan also sees Juneyao flights at Tokyo Haneda, Osaka, China, Juneyao has announced it would join Star Alliance as Nagoya, Fukuoka, Tottori, Obihiro and Okinawa. a connecting partner early in 2017. “This tie-up allows us to Earlier this year, the carrier launched a thrice-weekly achieve our goals, lower our costs and provide more services Pudong-Irkutsk service, its longest route to date. It then to our passengers,” Wang said. added a daily Chengdu-Krabi service and Nanjing-Okinawa While he did not spell out the costs of joining Star, the flights, which signalled a move away from its traditional Juneyao boss said he would wait to see how the partnership hubs. with Star develops before he decides to become a full-fledged Juneyao is often mistaken for a budget airline. Nothing member of the alliance. “We have weighed in on which could be further from the truth, said the “high-value alliance would be better for us. We have decided to sign a carrier”. It is “cost-efficient”, but it re-emphasised it spends memorandum with Star Alliance because costs are lower, more on in-flight offerings than its competitors. their business is more aligned with ours and it’s more The Wangs are nonetheless well aware of China’s LCC efficient,” Wang said. potential. As early as 2006, Juneyao Group purchased a 71% Wherever its allegiance may lie, Juneyao will continue equity in Okay Airways’ largest shareholder, Beijing Okay its codeshare partnership with fellow Shanghai carrier and Investment Co, and obtained a 45% indirect holding in the SkyTeam member, China Eastern Airlines. “We decided Tianjin-based LCC. Four years later, Juneyao sold its shares to do this for the benefit of the traveller and not for our in Okay Airways to DTW Group, for 200 million yuan, business. We’re open to collaboration with any airline, after reported disputes with the LCC’s minority owners. specifically any airline that flies to Shanghai, as long as it can Wang cemented his commitment to the budget sector by bring convenience for the traveller,” he said. founding Jiuyuan Airlines—variously branded In the meantime, “we offer 53 additional routes that “9 Air” or “nine yuan” for its lowest airfare—in will complement Star Alliance’s Guangzhou in December 2014. The setting up of the airline followed closely on the heels of Beijing’s advocacy for more LCCs, following the success of privately-owned Spring Airlines, also headquartered at Hongqiao. Jiuyuan got off to a rocky start after missing out on the good slots at Guangzhou Baiyun, which delayed its launch and stunted its initial growth. The LCC now flies 16 domestic routes to 11 cities on ten B737- 800s. it has some “tag” routes departing from Guangzhou before 7am for multiple stops before returning to the Pearl River Delta after midnight. The LCC has an order backlog with Boeing for 20 B737-800s and 30 B737 MAXs. Wang hoped it would break

NOVEMBER 2016 / ORIENT AVIATION / 21 COVER STORY

existing services from Shanghai ever committed to his family conglomerate and the airline. and will no doubt attract more “Wang’s extraordinary courage and insight together with connecting passengers to our two home other entrepreneurs in China with pioneering spirits might hub airports”, he said. lead China’s private economy to take off,” the New York “We’ve also been cooperating with China Times said back in the early 2000s. Eastern for a long time,” Wang emphasised. “It’s a Sure enough, the economy took off and so did the mutual relationship, but we’re in talks with many airlines Wangs and their Juneyao Group. The group can lay claim about how we could move forward by working together.” to be one of the first private aviation pioneers in the nation. In particular, Wang mentioned Air New Zealand It broke through the bureaucracy of state ownership and Air Canada. The latter is preparing to launch a daily and tight regulation and is Montreal-Pudong service in February, complementing its delivering a consumer-centric existing daily flights to Toronto and Vancouver. experience to the Chinese Wang is regarded as an unassuming, hands-on leader, air passenger. ■

22 / ORIENT AVIATION / NOVEMBER 2016 +

Visit us at Airshow China Nov. 1-6, 2016 Zhuhai, China

LIFETIME EXCELLENCE

MTU Maintenance, the world leader in independent engine services. As engine experts, we focus on maxi- mizing your earnings and optimizing costs during the life cycle of the engine and beyond. With decades of experience, we oﬀ er tailored solutions encompassing innovative MRO services, integrated leasing and best- of-breed asset management. There is always a better solution for your engines, MTU has it.

www.mtu.de/maintenance

Maint_E_202x273_Orient_Aviation-USD_20161105_02.indd 1 14.10.16 14:19 NEWS BACKGROUNDER

Juneyao Airlines expands Star presence in Shanghai

By Dominic Lalk

tar Alliance and Juneyao Airlines have formally sealed a strategic partnership which will see the Shanghai-based Scarrier become a “Connecting Partner (CP)” of Star Alliance, “hopefully before April 2017,” the airline newlyweds told Orient Aviation at a ceremony at Shanghai’s iconic Jin Mao Tower last month. The tie-up will allow Hongqiao-headquartered Juneyao to offer services such as through-check-in, lounge access and additional baggage allowance to qualifying passengers traveling on connecting itineraries with Star carriers, including Air China, Air Star Alliance’s existing services of becoming a Star CP, particularly as we welcomed EVA Air to India, Air New Zealand, All Nippon from Shanghai and attract more with regards to IT integration the family in 2013”, adding he Airways, Asiana Airlines, EVA connecting passengers to our issues. “Their platform here is was “impressed by the carrier’s Air, Shenzhen Airlines, Singapore two home hub airports,” said Travelsky. We’ve done integration professionalism and operational Airlines and Thai Airways Juneyao’s chairman, Wang Junjin. with Travelsky before, so all sides efficiencies” from the beginning International. Juneyao’s marriage with know how it works and there of their discussions. “Shanghai did present a Star potentially provides access shouldn’t be any big problems,” Star launched the CPM model significant gap for us, so Juneyao to 1,300 airports served by Schwab said. last December in partnership with is a terrific addition to our the alliance’s carriers, while “A full member needs to have South Africa’s Mango Airlines, but network proposition in China significantly increasing its chances full commercial relationships with slower-than-expected necessary and particularly in Shanghai,” of success when it launches long- all members of Star Alliance,” technological and commercial outgoing Star Alliance CEO, Mark haul operations with ten B787s Schwab said, while “as a CP, that links, paired with a leadership Schwab, said. from 2020. For Star and Air China, carrier only needs to establish change at the low-cost-carrier, put Seventeen Star carriers Shanghai-based Juneyao gives commercial relationships the brakes on implementation. operate close to 1,600 them a bigger presence in China’s with airlines that make sense, Schwab said the alliance was weekly services in and out of key financial hub dominated by in this case airlines flying to in negotiations with “a handful” Shanghai’s two airports, Pudong SkyTeam’s China Eastern Airlines. China, so that in itself creates a of other airlines about joining International and Hongqiao Star took a big hit in 2010 significant difference in the cost as CP members, “although not International, and Juneyao serves when Shanghai Airlines left the of integration.” The Frankfurt- in China [or Australia]”. “I don’t both of them. With a fleet of 56 alliance after it was taken over headquartered airline grouping think there’s an obvious candidate aircraft, it flies 1,700 flights a by China Eastern. Analysts have has been investing heavily in there,” Schwab said. Orient week to 69 destinations in eight predicted Star could feed up to building new technology to make Aviation understands Air India countries and “regions” – the 2,000 more passengers a day into the customer proposition easier. Express and Thai Smile Air could Mainland’s description of Hong Juneyao’s network, which will Schwab told Orient Aviation be the next CP Star partners. Kong, Macau and Taiwan. generate an extra $20 million in that negotiations between the Schwab will retire in January “We will offer 53 additional annual revenue, numbers that in alliance and Juneyao had been and be succeeded by Star COO, routes that will complement the long-term outweigh the costs on-going for three years, “right Malaysian-born Jeffrey Goh. ■

24 / ORIENT AVIATION / NOVEMBER 2016 Shaping tomorrow’s regional aviation

atr-aircraft.com

ATR is the worldwide reference for regional aircraft, ﬂ ying in almost 100 countries with 200 operators. The unique versatility and ﬂ exibility together with the ability to serve challenging airports, make ATRs the right tools for creating new routes and consolidating existing markets.

O O O 16T3231_ATR_17_OrientAviation_GB_202x273mm.indd 1 O 25/10/2016 15:46

O O O O NEWS BACKGROUNDER

The hard work begins

After six years of often torturous negotiations, the International Civil Aviation Organization (ICAO) has agreed to a framework to reduce carbon emissions from aviation. The pact marked the first time a global industry had voluntarily committed to reducing its emissions. But not every country is on board – for now.

By Tom Ballantyne

hen the mandatory scheme, which will be injustice,” said India’s ICAO scheme. representatives will cost airlines as much as Minister for Human Resources, CORSIA only covers of the world’s $23.9 billion annually by 2035. Prakash Javadekar. international flights and rather aviation India’s decision was Airlines regard CORSIA than enforcing emissions regulators, disappointing, but not as a huge victory for the reductions, it allows airlines to Wairlines and other interested unexpected. New Delhi believes, industry. It removes the threat increase pollution in exchange parties gathered in Montreal as do some fellow developing of a patchwork of regional for buying credits that support in late September for the nations, that the scheme will environmental regulations and renewable energy development, International Civil Aviation disadvantage the nation’s taxes that were forecast to be forest preservation and other Organisation’s triennial Assembly, economy. even more costly than the environmental endeavours. they expected the world’s first India’s decision was Under CORSIA, the cost per carbon offsetting scheme for the announced only days after flight for emissions will be low industry would be approved. It it had ratified the Paris enough not to impact airfares. was but with caveats. Agreement on Climate Association of Asia Pacific One hundred and ninety one Change. It said capping Airlines (AAPA) director general, states ratified the Carbon Offset emissions from aviation Andrew Herdman, who was a and Reduction Scheme for from 2020 would be member of the aviation cross- International Aviation (CORSIA), “an injustice” to the industry delegation at the but only 68 of them committed country’s growing ICAO Assembly, said it was a to the initial, voluntary stage of economy. It wants to landmark agreement. the scheme. remain outside the “We commend the 68 Opting out, for the time mechanism for the next States who demonstrated being, is India, presently the few years. leadership with their world’s fastest growing aviation Like India, several commitment to the voluntary market. Vietnam, the Philippines, developing countries stage of CORSIA. We look to Laos, Cambodia and Myanmar believe the market-based other States to follow this also are waiting and seeing. taxation regime would lead and declare their Major dissenter, Russia, told impose an inappropriate the ICAO Assembly the agreed economic burden on them. emissions cap, to apply from India’s position was 2020, was “unrealistic” and approved at a cabinet meeting that it was not ready to join the chaired by the country’s prime framework. minister, Narendra Modi. First in the Asia-Pacific to “There is an attempt to participate in the voluntary initial bring a cap on emissions in civil phase are China, Indonesia, aviation by 2020. We have said Singapore, Japan, Malaysia, that for the developing world New Zealand, Korea, Australia, the proposal is unfair. When Thailand, Papua New Guinea the economy is growing, you and the Marshal Islands. cannot cap our emissions Ultimately, India will have to join from aviation. A cap by 2020

26 / ORIENT AVIATION / NOVEMBER 2016 NEW

ALSIM.COM

ALS_Ad_Advert_2016.11_Orient-Aviation_v1_FA_Outline.indd 1 28/10/2016 12:09 NEWS BACKGROUNDER

emissions with air traffic Airports Council International CORSIA timeline management solutions that (ACI) World, said: “This historic allow aircraft to fly shorter, climate agreement follows The CORSIA will be applied to international aviation in phases: optimum routes and take off and an ACI Resolution supporting • 2021 to 2023 – a ‘pilot’ voluntary phase for countries who have land with smoother trajectories. CORSIA and the signing of a volunteered to be part of the scheme. Sixty eight of the 191 Pillar three is focused on industry Memorandum of Understanding member states who voted for ICAO’s CORSIA, which together represents more than 85% of air traffic, have volunteered to be and government efforts to between ACI and ICAO included in the scheme from its outset. increase capacity and reduce for enhanced cooperation • A 2022 review will be undertaken to determine if CORSIA delays with better airport on environmental related needs operational revision before it moves to its next stage of facilities and their associated initiatives.” activation. services. Aircraft manufacturers • 2024 to 2026 – the first implementation phase, on a voluntary Executive Director of the Boeing, Airbus and Embraer, basis. cross-industry Air Transport all producing new generation, • 2027 to 2035 – the second phase, which will include all States Action Group (ATAG), Michael more fuel efficient aircraft, except the least developed small island states and countries with Gill, said: “What was a visionary welcomed CORSIA and pledged a small amount of international air traffic. The excluded states approach seven years ago has their commitment to build make up less than 0.5% of global air traffic. become a reality.” Angela more environmentally friendly Gittens, director general of airliners. ■ voluntary participation in the general and CEO, Alexandre CORSIA,” he said. de Juniac, said the historic The AAPA has been significance of the agreement ASPIRE spreads its wings actively involved in developing cannot be overestimated. Singapore Airlines’ new route, the “Capital Express” between the industry strategy on “CORSIA is the first global Singapore, Australia’s capital city of Canberra and Wellington environmental sustainability, scheme covering an entire in New Zealand is the latest addition to the Asia South Pacific Herdman said, and added industrial sector. The CORSIA Initiative to Reduce Emissions (ASPIRE) program. that “although a great deal of agreement has turned years of The Civil Aviation Authority Singapore (CAAS), Singapore Airlines, Airservices Australia and Airways New Zealand said work has gone into achieving preparation into an effective the flights will be environmentally friendly by making use of this outcome, challenges lie solution for airlines to manage favourable winds, reducing airborne holding times, enabling ahead to ensure the scheme is their carbon footprint,” he said. efficient ‘continuous descent’ arrivals and reducing taxi times. implemented effectively. “This agreement ensures the The ASPIRE program is a partnership of six air navigation ICAO secretary-general, aviation industry’s economic and agencies and ten airlines and is focused on reducing the environ- China’s Fang Liu, said CORSIA social contributions are matched mental impact of aviation in the Asia-Pacific. The inaugural Capital was a “balanced, pragmatic and with cutting-edge efforts on Express flights on September 20 and 21 saved almost 7,000 kg of a very positive development”. sustainability.” fuel across the four sectors, which equated to an approximate Environmentalists, however, By itself, de Juniac said, saving of around 22,000 kg of carbon emissions. had a lukewarm response to the CORSIA would not lead to a It is calculated that ASPIRE will save the Capital Express route around 1.5 million kilograms of fuel and 4.6 million kilograms of agreement. “We are far from sustainable future for aviation. emissions (equivalent to removing 970 vehicles from the road) the finish line in curbing carbon “The industry will continue to annually – the equivalent of removing 970 cars from the road. pollution from international drive its four pillar strategy on CAAS director-general, Kevin Shum, said: “CAAS has been aviation,” said Lou Leonard of climate change: improvements an active ASPIRE participant since 2010. We are delighted the the World Wildlife Fund. “But in technology, operations and program continues to grow and make impactful progress. By this is the starting block. It’s a infrastructure complemented working closely together and adopting best practices in air foundation we must build on by CORSIA. It also will ask navigation, we can enhance air transport operations and reduce over time,” he said. governments to support aviation emissions.” Greenpeace UK chief commercialization of sustainable SIA senior vice president flight operations, Captain C.E. Quay, scientist, Doug Parr, said: “This alternative fuels for aviation,” said: “We believe we have a long-term responsibility to help protect the environment. We constantly ensure our operations are agreement is a timid step in the he said. carried out in a responsible manner through a framework designed right direction when we need Civil Air Navigation Services to manage issues related to carbon emissions, waste, noise and to be sprinting. For years, the Organisation (CANSO) director the consumption of energy and resources.” aviation industry has managed general, Jeff Poole, said CANSO Since ASPIRE was established in 2008, its partner airlines to get away with doing nothing would continue to focus on and air navigation agencies have implemented 30 ASPIRE daily about its growing carbon pillars two and three of the city pairs across the Asia-Pacific. SIA was the first airline to fly emission problem. Now it is industry’s climate change a multi-sector demonstration green flight in 2010, when SQ11 giving itself even more years to strategy: more efficient aircraft flew from Singapore to Los Angeles, via Tokyo. Applying ASPIRE do very little.’’ operations and upgraded practices, the journey saved 10,686 kg of fuel and reduced carbon International Air Transport infrastructure. emissions by 33,769 kg. Association (IATA) director Pillar two aimed to reduce

28 / ORIENT AVIATION / NOVEMBER 2016 WHERE ARE YOUR NEXT PILOTS COMING FROM?

Right here. Every year, we train over 120,000 pilots in our 50 training centers worldwide. Add the 1,000 experienced pilots accessed through our crew resourcing centers, plus the 1,000 new pilots graduating from our training academies yearly, and answering the question has never been so easy.

Your worldwide training partner of choice. INDUSTRY INSIGHT ASIA-PACIFIC COCKPIT TRAINNG: AN UPDATE Beyond the simulator

The AirAsia Group and Canada’s CAE are testing a Next Gen training system for pilots that seeks to erase industry doubts about current cockpit teaching.

Tom Ballantyne reports

his month, Canadian simulator manufacturer and pilot training group, CAE, and the AirAsia Group Twill begin testing a pilot training system intended to improve the objective performances of pilots by exploiting the brave new world of data analytics. The Next Generation Training System, which has been installed on one of the Airbus A320 simulators at the Asian Aviation Centre of Excellence (AACE) in Kuala Lumpur, is being heralded by CAE as a breakthrough in the industry. Said Nick Leontidis, CAE’s Group President, Civil Aviation Training Solutions: “Supported by innovative data collection and analysis techniques, this system promises to improve training quality and efficiency by integrating untapped data-driven insights into training.” system where pilots can have flying their pilots must do in their trouble and do not recognize the And as the debate their skills measured in critical Standard Operating Procedures situation they are in. This puts continues about pilots’ reliance situations. The training is a (SOP). them in a place where the aircraft on automation in the cockpit, structured list of skills that “Manual flying is an area is uncontrollable. CAE said the new system will must be mastered. We will of discussion and debate, but “I think most pilots, even the train pilots to fly commercially measure those skills and do it in there are others issues too. Upset younger ones, understand how as well as teach them to react a way that the airline wants the prevention and recovery is one. to fly an aircraft in a controlled appropriately when things go measurements done. There have been incidents where environment. It’s the uncontrolled wrong. “We will give the instructor people have stalled aircraft and environment that is the threat.” “The basic notion behind the ability not only to subjectively unfortunately that has resulted in “We think upset prevention our Next Gen Training System assess the performance of a loss of life,” he said. and recovery training should is to give instructors a better trainee, but also the ability to “We believe we don’t need be added to training programs. capability to objectively measure deliver an objective assessment to teach people manual flying, Many airlines have made it part the critical skills needed by pilots. [of the trainee].” but we need to train them to of their pilot training and it is We also need methods to train While manual flying is one get out of trouble when they are included in CAE’s curriculum as people for a particular airline’s of the skills a pilot must master, in trouble. These are the times well,” he said. requirements,” said Leontidis. Leontidis said it is airlines that when most of these accidents “Pilots have to be ready for “We have developed a dictate the amount of manual have occurred. Pilots get into that moment when something

30 / ORIENT AVIATION / NOVEMBER 2016 Unlock Value In Your Supply Chain

Turn your supply chain into a value chain with aggregated aviation services from global leader AAR. Our supply chain solutions range from individual component repair to complete rotable inventory management, leveraging our global warehouse network and seamless IT platforms. It’s everything you need, whenv you need it. As an independent services provider, AAR is a single source for efficiency and cost savings. For more than 60 years, we have partnered with our customers to create custom programs and we pride ourselves on doing it right.

AAR is a global company serving customers in more than 100 countries and recently announced a PBH contract with IBEX Airlines in support of its CRJ aircraft.

WWW.AARCORP.COM +1 800.422.2213 – WORLD HQ +65 6508.6460 – SINGAPORE

FLIGHT-HOUR SUPPORT | COMPONENT REPAIR | OEM FACTORY-NEW & USED PARTS AAR ad 84 - Orient Avaiation 2016 - Nov

AAR Orient Aviation 1P.indd 7 10/3/16 3:20 PM INDUSTRY INSIGHT ASIA-PACIFIC COCKPIT TRAINNG: AN UPDATE

does go wrong. It’s not learning their pilots. ‘hey, here’s how an A350 flies Pilots have to be ready for “Everybody wins in this type around’. It’s what you do when of system. We believe it will bring the A350 decides it does not that moment when something the quality of the training to want to fly anymore.” does go wrong. It’s not learning another level.” Leontidis said Next Gen ‘hey, here’s how an A350 flies around’. CAE’s Asia-Pacific business training has been developed is thriving. It has 15 training because there are a lot of young It’s what you do when the A350 decides schools across the region: Asia pilots in the system and it would it does not want to fly anymore (9), India (4) and Australia (2). be beneficial to know if they are “Our big operations are in Zhuhai, operating correctly. If they are Nick Leontidis southern China, Kuala Lumpur not, the system can catch them CAE’s Group President, Civil Aviation Training Solutions and Tokyo,” said Leontidis. early and correct their mistakes. There also is a training centre “We are looking for insights results are assessed objectively. help if required. It’s useful for in Singapore, part of its joint about what is going on. It’s useful It’s useful to the instructor management because they will venture with AirAsia, as well as to the individual because the because he can decide how to have a better understanding of joint venture centres with Cebu

many smaller training companies setting up in their wake. Training flourishes as Last year, China’s Sichuan Haite High-Tech Co. Ltd, part of the Chengdu HAITE Group set pilot demand escalates up HAITE Singapore, a 21,000 square metre training centre at Changi Business Park. It is the Forecasts predict Asia-Pacific airlines will buy between 13,000 largest independent aircraft pilot and 15,000 new aircraft, worth more than $2 trillion, in the training centre in Singapore and next two decades. Contrary to general thinking, there is is HAITE’s first aviation training growing evidence training organizations will produce enough facility outside China. It trains pilots and aviation- pilots to crew the region’s airline fleet. related crews,, including cadets from commercial airlines, that iven the rapid “A nation of 92 million become a challenge for the do not operate have their own growth of Vietnam’s people cannot develop its industry. simulators or academies. “Our airline industry, it aviation industry without training Boeing’s latest forecast said first training session commenced is surprising the and examining new pilots in 1.5 million pilots and technicians last May and we have been country does not the airspace where domestic will be required by the industry in gradually increasing our training Ghave a single pilot training school. airlines operate,” said Eagle Flight the next 20 years, an increase of volume ever since. We have Apart from Viet Flight Training Training Ltd’s CEO, Alexander 10.5% for pilots and 11.3% for trained 1,500 air crew from JSC (BayViet), which provides Zapisetskiy. technicians, over the company’s airlines and training organizations aviation ground training in Ho Chi The project has an ambitious forecast 12 months ago. An in ASEAN,” said the managing Minh City, Vietnam has no civilian target of training more than 300 estimated 40% of them will be director of HAITE Singapore, flight training organization. Yet pilot students a year by 2020. needed in Asia-Pacific. Marc Nadeau. there is an unabated shortage of Students will be taken to Private Most of the region’s major HAITE is evaluating the qualified flight instructors and Pilot Licence level in Vietnam and full-service airlines have their market with the intention of flight examination staff at every complete their commercial pilot own highly efficient pilot training adding training devices to its airline in the nation. training in New Zealand. programs, although they too are network of centres, including But that is about to change. Vietnam is not alone losing some experienced pilots to Singapore. HAITE Singapore Early next year, New Zealand’s scrambling for crew to fill in the better paying jobs in the Gulf and Aviation Training Centre is Eagle Flight Training Ltd, which growing number of cockpits on the Mainland. equipped with a B737-800W has been training Vietnamese across the region. As airlines However, training Full Flight Simulator, an A320 pilots at its base at Ardmore struggle to stop their experienced organizations are expanding Full Flight Simulator and an A320 Airport in Auckland for many pilots from being lured away by their operations in the region, Integrated Procedure Trainer years, will open a flight school Middle East and Chinese airlines the world’s fastest growing (IPT). at Chulai Airport in central or large budget carriers, meeting aviation market, with Boeing In the next four years, it Vietnam’s Quang Nam province. demand for qualified pilots has and Airbus leading the way and intends to progressively expand

32 / ORIENT AVIATION / NOVEMBER 2016 INDUSTRY INSIGHT ASIA-PACIFIC COCKPIT TRAINNG: AN UPDATE

Pacific, China Southern Airlines, 737MAX, a simulator A320NEO China Eastern Airlines and Japan and an ATR72-600, to support Airlines (JAL). Indonesian LCC, Lion Air’s, Challenges of In August, CAE signed a expanding training requirements. five-year commercial aviation It also has extended its existing training contract with South training contracts with South the automated Korean budget carrier, Air Seoul, Korea’s Jeju Air and Japan for the training of the carrier’s Airlines (JAL). The JAL contract, A320 cockpit crew. Air Seoul a Multi-Crew Pilot License (MPL) flight deck pilots began their CAE training First Officer Program, has been on August 1 at the CAE Korea extended by three years to 2023. Training Centre. “We have the capacity to do As more highly automated aircraft - A380s, Earlier in the year, the more. We see ourselves adding B787s, A350s and other new types - take to company agreed to a training more simulators, more instructors equipment contract that and more capacity to train the sky, the industry is asking if pilots and included the sale of three Boeing people,” Leontidis said. ■ engineers are being properly trained to fly and maintain them.

New Zealand joint venture to train he International Civil incorrectly when the aircraft Aviation Organization approached a stall. The pilot Vietnamese aircraft technicians (ICAO) has identified pulled back on the sidestick, the The Eagle Flight Training Ltd joint venture in Vietnam will not loss of control of reverse of what he should have be limited to producing qualified pilots. A year ago, the company highly automated done. signed a Business Cooperation Agreement with Vietnam’s Taircraft as the single most Five years later, in June Aerospace Engineering Services JSC (AESC). Established in 2008, significant threat to aviation 2014, Asiana Airlines flight AESC is the first private company approved and certified by the safety. The ruling has sparked 214 crashed on landing at San Civil Aviation Administration of Vietnam (CAAV) as a VAR 145 widespread industry discussion Francisco International Airport in Maintenance Organization. about aircraft training curriculums the U.S. The country’s National After five years of development, it has expanded its business for pilots and maintenance Transportation Board (NTSB) to include aviation consulting and aviation training. AESC will engineers as a result of several found the crew mismanaged the be responsible for aircraft maintenance and aviation technician recent accidents and incidents. approach. training under the joint agreement. “It will be a highly diverse operation with a mixture of flight A prime example of the The investigators said instructors and managers from New Zealand and Vietnam. This debate was the Air France the pilots’ over-reliance on project will require strong support from the aviation authorities A330 AF 447 crash in the South automation and their lack of of both countries, said Eagle Flight Training Ltd CEO, Alexander Atlantic in June 2009. The aircraft systems understanding were Zapisetskiy. was en route from Brazil to Paris major contributing factors to the “We also expect collaboration with BayViet, domestic airlines when it disappeared. crash landing. The NTSB also said and the ministries of transport and education in Vietnam. Our When the black box was the pilot’s faulty mental model of Vietnamese mission is to replicate the successful New Zealand recovered two years later, it was the aircraft’s automation logic led model of pilot training.” discovered that the crew reacted to his inadvertent deactivation of

to its full seven-bay capacity. By million dollar MPS A320 FBS, the then, the facility could provide first to be operated in Southeast more than 40,000 hours of Asia, will be ready for use by training per year and attract up AAG Philippines 240 cadets and to US$24 million in direct and airline partners. indirect revenue annually for the AAG Philippine’s new Singapore economy. simulator is not unique. A recent In the Philippines, the research report by Stratistics MRC Alpha Aviation Group (AAG) said the global flight simulator is increasing its investment at market is expected to grow from its subsidiary, AAG Philippines, $5.89 billion in 2015 to $8.03 with the delivery of a new Airbus billion by 2022, with the number A320 Fixed Based Simulator (FBS) of simulators in Asia-Pacific acquired from manufacturer to grow faster than any other Multi Pilot Simulation. The multi- region. ■

NOVEMBER 2016 / ORIENT AVIATION / 33 INDUSTRY INSIGHT ASIA-PACIFIC COCKPIT TRAINNG: AN UPDATE

the automatic airspeed control. We want to avoid complacency. In addition, the safety body In the simulator, we want to train We want pilots to improve their said the airline’s automation people in the whole flight envelope, knowledge and their skills.” policy emphasized the full use At Boeing, it was decided of all automation and did not but to stay within the envelope. the digital technology of the encourage manual flight during We want to train people to fly B787 Dreamliner required a line operations. digital training solution. Boeing’s Such accidents have been without autopilot, without a flight director, training subsidiary, Alteon, used to advance the view that without all the IT. With all that off introduced major changes pilot training curriculums do not to its training programs to train cockpit crew to handle the Captain Michel Menestrot accommodate B787 training sophisticated automation of a Airbus regional senior director south and Southeast Asia requirements. modern flight deck. The doubts “The use of personal desktop about crew training have been director south and Southeast the street. The idea is to make computers, interactive computer- exacerbated by the fact there are Asia, Captain Michel Menestrot, pilot training mobile so we have based training, three dimensional no global standards in place for said: “The message we want put the cockpit on a tablet and images and desktop simulation pilot training. to pass on is we must think and training can done anywhere,” make it possible to do much more So the questions to be re-think the training. The work said Menestrot. efficient training,” said Boeing. addressed are: is the new breed has changed. The technology has Computer Based Training “Modern flight training devices of airline pilot, surrounded by changed. (CBT), where trainees sit in and simulators combined with high technology, losing his or her “We have changed. I have front of a computer animation these tools and digital delivery basic flying skills? And if so, what some white hair now that I didn’t of the technical systems, also offer significantly shorter courses is being done about it? have 35 years ago when I did my has been revolutionized with than previous Boeing training At Airbus, pilot training has first instructing. We have to use new equipment. The Airbus programs. The training system undergone a radical redesign the new technology. But in a way Pilot Transition trainer (APT) is a and new simulation devices for since its latest aircraft, the A350, we have to go back to the basics more realistic training tool that is the B787 use technology that was introduced into service. It of flying skills and also look at making CBT obsolete. takes learning to the next level.” has been successful so the new what the basics of training are.” “Look at young people. They For the B787 training curriculum is being extended to Menestrot said when Airbus never open a manual. They learn program, which mirrors many of pilot training programs for all of reviewed its training program as by doing. They take the device the advanced technologies of the the manufacturer’s aircraft types. the A350 was being developed, and start playing with it so now aircraft, Boeing built an electronic At Boeing, its approach to new tools were introduced, that is part of the A350 training performance support system modern flight training also has including the Airbus Cockpit philosophy,’’ said Menestrot. rather than a traditional training shifted with the arrival of its Next Experience (ACE). ACE is a laptop “What do we want to program. Gen jet, the B787, with customers program featuring the A350 train?” asks Menestrot. “We It is an integrated electronic from earlier in the decade. In cockpit that allows self-paced want to train some theoretical environment that’s available to response to the technology built study and functional learning for knowledge. We want to trainees at any time. into a Dreamliner cockpit, Boeing theory and practice. train manual flying skills. We The effectiveness of this has developed an all-digital, Students can be taken want to train threat and error approach also means training Internet-based teaching system through every possible procedure management. We want to is shorter and more efficient. for flight and maintenance step by step, right down to train decision-making and crew “A B777 pilot can complete training on the aircraft. parking the aircraft, either alone communication, together with B787 flight differences training At a recent Association of or with an instructor’s support. attitude to achieve this good in five days with no full-flight Asia-Pacific Airlines air safety “Everybody is mobile today. airmanship. We want to have simulator,” said Boeing. “The seminar, Airbus’ regional senior Students can take the training to people we call engaged pilots. maintenance training line and base course is 50% shorter than the B777 course. Distance learning options reduce time at the training center and prepare students for formal training.” The Seattle manufacturer also has introduced real time simulation in maintenance training. Trainees practice on the same tools in the classroom that the mechanics use in the field on the aircraft. ■

34 / ORIENT AVIATION / NOVEMBER 2016 No.1 Asia-Pacific commercial aviation magazine

ORIENT AVIATION SPECIAL REPORTS 2016

DECEMBER/JANUARY YEAR IN REVIEW: AVIATION WINNERS & LOSERS IN 2016

BONUS DISTRIBUTIONS: Orient Aviation Person of the Year Awards Dinner Hong Kong, SAR

ADVERTISING ENQUIRIES TO ORIENT AVIATION MEDIA GROUP SALES DIRECTORS: The Americas / Canada Europe, the Middle East & the Asia-Pacific RAY BARNES CLIVE RICHARDSON E-mail: [email protected] E-mail: [email protected]

ORIENT AVIATION MEDIA GROUP: ORIENT AVIATION • E-ORIENT AVIATION • ORIENT AVIATION CHINA • ORIENT AVIATION‘S WEEK IN THE ASIA-PACIFIC • WWW.ORIENTAVIATION.COM ELIMINATE CREDIT CARD FEES NEW REVENUE STREAMS

COMPETITIVE MARKET INTELLIGENCE SELF-FUNDING PROGRAMS

CONNECT TO ALTERNATIVE FORMS OF PAYMENT THROUGH UATP