The Long and Winding Road
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Vol. 24 No. 4 May 2017 orientaviation.com THE LONG AND WINDING ROAD Airlines drawn to the limitless opportunities of China’s Trans-Asia “Belt and Road Initiative” “King of good times” Etihad Group chairman Record profits for and Kingfisher founder announces top All Nippon Airways as facing UK courts management changes Japan Airlines falters INDUSTRYAsia-Pacific INSIGHT Air an update Traffic Management: B:212 mm T:202 mm S:179 mm High performance. Longest shelf life.* ExxonMobil offers a complete line of multipurpose airframe and wheel bearing greases, backed by the longest shelf life in the aviation industry.* Our greases provide exceptional protection and performance over their lifetime, helping operators to minimize waste and reduce inventory carrying costs. Explore our full grease offer at mobilaviationgrease.com. B:283 mm S:253 mm T:273 mm *Versus similar-type competitive greases. © 2017 ExxonMobil. All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries. Filename: 723644-1_V2.indd CLIENT: BBDO New York ExxonMobil Corporation PRODUCT: Aviation - Grease Family Print ad Agency Job Number: BDNY-P00006802 Cradle Job Number: 723644-1 (EML G01) JOB#: None SPACE: None Proof #: 2 Path: EG-PLUS-NY:Volumes:EG-PLUS-NY:EGPlus_ Created: 4-25-2017 11:43 AM BLEED: 212 mm x 283 mm Departments:Print:A‚ÄîF:BBDO:Exxon:723644-1:723644-1_Mechanicals:723644-1_V2.indd Saved: 4-26-2017 12:53 PM TRIM: 202 mm x 273 mm Operators: Chong, Patricia / Chong, Patricia Printed: 4-26-2017 12:53 PM SAFETY: 179 mm x 253 mm Print Scale: None GUTTER: None PUBS: Orient Aviation Ink Names: Cyan OOH Scaling Info: Fonts: EMprint Semibold, Regular, ISSUE: May Issue MCD: 4/27 Magenta Build Scale: 100% Condensed Regular TRAFFIC: Darcey Lund Yellow Final Safety : 253 mm H x 179 mm W Arial Regular ART BUYER: None Black Final Viewing Area : 273 mm H x 202 mm W ACCOUNT: None Final Trim : 273 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: ExxonAviation_WheelBearing_OOH_101915_layered_cmyk_deliverable.psd CMYK 797 ppi exmo_tag_tm_white.eps Headline: 30pt Body: 12pt Legal: 6pt -EMPrint cond regular 100% KO CONTENTS Volume 24, Issue 4 COVER STORY 18 THE LONG AND WINDING ROAD PUBLISHED BY Airlines drawn to the opportunities of China’s ORIENT AVIATION MEDIA GROUP gargantuan Trans-Asia “Belt and Road Initiative ” Mailing address: GPO Box 11435 Hong Kong Office: 17/F Hang Wai Commercial Building, 231-233 Queen’s Road East, Wanchai, Hong Kong Tel: Editorial (852) 2865 1013 E-mail: [email protected] Website: www.orientaviation.com Publisher & Editor-in-Chief Christine McGee E-mail: [email protected] Chief Correspondent Tom Ballantyne Tel: (612) 9638 6895 Fax: (612) 9684 2776 E-mail: [email protected] Greater China Correspondent Dominic Lalk Tel: (852) 2865 1013 E-mail: [email protected] COMMENT 16 Japan Airlines emerges from banker protection North Asia Correspondent 5 Glacial progress of Seamless Asian Sky after seven years Geoffrey Tudor 22 THAI brings errant subsidiaries into its fold Tel: (813) 3373 8368 E-mail: [email protected] ADDENDUM 22 Thai AirAsia’s Air Operator’s Certificate 6 “King of good times”, Kingfisher founder, V. J. recertified India Correspondent R. Thomas Mallya, faces UK court 26 China’s small airports setting records for growth Tel: (852) 2865 1013 6 All Nippon Airways reports record profit as Japan E-mail: [email protected] Airlines slumps INDUSTRY ADDENDUM Photographers 23 Mobil jet oil goes network wide at Singapore Rob Finlayson, Graham Uden, Ryan Peters Airlines 23 Navitaire unveils world’s first Virtual Reality Chief Designer Chan Ping Kwan travel search engine 23 SITAONAIR wins contracts with Malaysia Airlines Printing Printing Station(2008) and Philippine Airlines 24 Embraer and Uber to develop flying taxis ADMINISTRATION 6 Japan Air Commuter accepts first ATR 42 600 24 Colombo’s international airport upgraded with General Manager 7 Etihad Group chairman announces top ADB SAFEGATE LED lighting systems Shirley Ho E-mail: [email protected] management changes 24 Shenzhen Airlines evaluates Inmarsat-Cobham 7 Airbus delays launch of A330neo to 2018 broadband flight deck system ADVERTISING 7 Vistara CEO, Phee Teik Yeoh, extends contract as 25 Airbus delivers first A350 -900 to Asiana Airlines Asia-Pacific, Europe & Middle East international launch approaches Clive Richardson Tel: (44) 7501 185257 E-mail: [email protected] NEWS BACKGROUNDERS 8 IATA boss defends airlines’ overbooking practices The Americas / Canada Barnes Media Associates 10 Tough times ahead for wide-body market Ray Barnes 14 Boeing targets Asia’s LCCs for B737 MAX business Tel: (1 434) 770 4108 Fax: (1 434) 927 5101 E-mail: [email protected] 25 Australia’s CSIRO and Boeing sign S$35 million [email protected] joint research agreement 25 Singapore approves second TRU full flight Follow us on Twitter @orientaviation simulator for Boeing campus also - keep up with the news of the week with Orient Aviation’s Week in 25 Avtrade staff drive to Mongolia for charity the Asia-Pacific © All rights reserved INDUSTRY INSIGHT Wilson Press HK Ltd., 15 Ruili Airlines chooses Cambodia for first Asia-Pacific Air Traffic Management: an update Hong Kong, 2017 international offshoot 28 Seamless Asian Sky stuck in the slow lane MAY 2017 / ORIENT AVIATION / 3 B:8.75” T:8” S:7” LIFECYCLE SUPPORT ANYTIME, ANYWHERE. 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That’s a better way to fl y. boeing.com/services Job Number: 10549738 Version: D CAS Interior REV 1 Client/Brand: Boeing/BCA Date: 9-14-2016 4:44 PM APPROVALS File Name: 10549738vD_R1_BCA_CAS_INT_8x11.indd QC: Steve Jablonoski Bleed: 8.75” x 11.25” Gutter: None Publications: Airline for America NDT Confer- PA: Steve Hutchings PR: Pat Owens Trim: 8” x 10.875” Folds: NoneNone ence, Frontiers RET: Greg Olsen PP: Marybeth Oskin Safety: 7” x 9.75” Media/Color Sp: PRINT/4 COLOR Notes: None AB: Kathleen Candelaria TM: Deanna Loperena/Kate Vilt Scale: 1=1 Country: None Vendor: None Actual Size: 8x10.875 Language: English Output%: None GCD: Eugene Varnado Colors: Cyan, Magenta, Yellow, Black AD: Sarah Frazer Fonts: Helvetica Neue (75 Bold, 65 Medium; 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: 10549738c05_R1__GWT4510.tif (300 ppi; CMYK), Boeing_white_50mm.eps COMMENT Glacial progress of Seamless Asian Sky Disappointment hardly describes the reaction of the A prime example of the situation is the rules airline industry to the very slow implementation of governing separation between airlines in flight. In Seamless Asian Sky. Conceived nearly a decade ago one country it can be five or ten nautical miles. In as a solution to the region’s rapid air traffic growth, it another 50. was intended to standardize the rules that govern air Some countries are modernizing ATM systems, traffic management (ATM) across the region. but it is largely being done with little regard to what the Through co-operation and discussion each person next door is doing. Singapore, China and Japan country also would make compatible and necessary are leading the way in co-operative arrangements. But ATM infrastructure improvements that airlines needed these are the exceptions to the rule. to expand. The program would have saved tens of This is why ATM experts are pinning so much hope millions of dollars annually. on a planned transport ministers meeting, set for the Instead, the Seamless Asian Sky initiative has first half of next year in China. It has been confirmed advanced at a snail’s pace, the International Air to Orient Aviation that the International Civil Aviation Transport Association (IATA) told Orient Aviation. Organization (ICAO) is arranging a gathering that IATA’s Singapore-based Asia-Pacific regional director will, for the first time, allow airlines to present their for safety and flight operations, Blair Cowles, said cohesive regional ATM structure case to transport progress on standardization was “glacial”. decision makers. Let’s hope they are heard. ■ TOM BALLANTYNE Chief Correspondent Orient Aviation Media Group The most trusted source of Asia-Pacific commercial aviation news and analysis ORIENT AVIATION ORIENT AVIATION CHINA “It has established itself as the primary source of information on industry topics in the Asia-Pacific region” MAY 2017 / ORIENT AVIATION / 5 ADDENDUM UK Court hearing for Kingfisher’s “king of good times” Indebted founder of defunct Kingfisher Indian United Brewer Group, the 61-year-old Airlines, V.J. Mallya, faces a case management argued he would not receive a fair hearing hearing in the U.K.’s Westminster Magistrate’s in India. He offered to pay $680 million to Court on May 17, following his arrest and settle his debts with lenders but the offer was subsequent release on bail of US$840,000 on declined. April 18. Last month Kingfisher Villa, a sprawling London police arrested the “king of good estate in North Goa where Mallya hosted times” at his mansion north of London on extravagant parties, was finally sold to actor behalf of the Indian authorities seeking his and businessman Sachiin Joshi.