WAITING WAITING WAITING GAME Carriers at the Crossroads As Changing Domestic Politics Delay Privatisation Plans
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VOL. 8 NO. 4 FEBRUARY 2001 MAGAZINE OF THE ASSOCIATION OF ASIA PACIFIC AIRLINES THE WAITING WAITING WAITING GAME Carriers at the crossroads as changing domestic politics delay privatisation plans Japan airport charges: The challenges of flying airlines keep up the pressure a B747 in the Antarctic SPECIALSPECIAL REPORREPORT:T: EngineeringEngineering && MaintenanceMaintenance inin thethe Asia-PacificAsia-Pacific VOL. 8 NO. 4 FEBRUARY 2001 COVER STORY N E W S Cathay Pacific denies delaying fleet orders 14 THE Indonesia rules SilkAir crash cause inconclusive 15 Record Year 2000 for China Airlines 16 WAITING “Grand design” needed for Tokyo’s airports, says JAL boss 24 New Air Niugini chief on a rescue mission 30 GAME Page 20 Offshore recruitment boom for flight attendants 32 SIA calls for industry wide research into “economy class syndrome” 34 Politics frustrate Business digest 52 would-be airline investors FEATURE Qantas flight crews queue up for Antarctic challenge 26 VOL. 8 NO. 4 FEBRUARY 2001 SPECIAL REPORTS AIR CARGO FOCUS: MAGAZINE OF THE ASSOCIATION OF ASIA PACIFIC AIRLINES Korean Air feels U.S. chill 36 Japan Airlines restructures cargo 38 UPS warns Hong Kong it may fall behind China in freight market 39 THE WAITING ENGINEERING AND MAINTENANCE: WAITING SIA pooling plan for A380 MRO facility 41 WAITING China’s ambitious maintenance centres predict growth and expansion 44 GAME HAECO on overseas quest 47 Carriers at the crossroads as changing domestic politics delay privatisation plans Pressure on Australia’s air safety bodies over maintenance blunder 48 Japan airport charges: The challenges of flying airlines keep up the pressure a B747 in the Antarctic SriLankan looking for MRO partner 50 SPECIAL REPORT: Engineering & Maintenance in the Asia-Pacific C O M M E N T Turbulence by Tom Ballantyne 58 INFLIGHT ASIA goes electronic The region’s new electronic inflight magazine dedicated to onboard services and technology. Check out www.orientaviation.com for the best informed news, trends and features on our industry. PUBLISHER Wilson Press Ltd Photographers South East Asia Association of Asia Pacific Airlines GPO Box 11435 Hong Kong Andrew Hunt (chief photographer), Tankayhui Media Secretariat Tel: Editorial (852) 2893 3676 Rob Finlayson, Hiro Murai Tan Kay Hui Suite 9.01, 9/F, Tel: (65) 9790 6090 Kompleks Antarabangsa, Fax: Editorial (852) 2892 2846 Design & Production Fax: (65) 299 2262 Jalan Sultan Ismail, E-mail: [email protected] Ü Design + Production Web Site: www.orientaviation.com E-mail: [email protected] 50250 Kuala Lumpur, Malaysia. Colour Separations Director General: Richard Stirland The Americas / Canada : Publisher and Managing Editor Twinstar Graphic Arts Co. Commercial Director: Carlos Chua Barnes Media Associates Barry Grindrod Technical Director: Leroy Keith Printing Ray Barnes Tel: (603) 245 5600 Joint Publisher Lammar Offset Tel: (1 203) 372 7738 Fax: (603) 245 7500 Christine McGee Printing Company Ltd Fax: (1 203) 372 8763 E-mail: [email protected] Published 10 times a year Chief Correspondent Distributed by February, March, April, May, June, Tom Ballantyne Wilson Press Ltd Europe : July/August, September, October, Tel: (612) 9638 6895 REM International November and December/January. Fax: (612) 9684 2776 Stephane de Remusat ADVERTISING © All rights reserved Head Office: Tel: (33 5) 34 27 01 30 Hong Kong & China: Wilson Press Ltd, Hong Kong, 2001. Jonathan Sharp, Wellington Ng Wilson Press Ltd Fax: (33 5) 34 27 01 31 Tel: (852) 2504 3995 Christine McGee E-mail: [email protected] Tel: (852) 2893 3676 The views expressed in this Fax: (852) 2892 2846 magazine are not necessarily E-mail: [email protected] those of the Association of Asia Pacific Airlines. Feb 01 | Orient Aviation | 5 PUBLISHER’S LETTER WRITING IS ON THE WALL he signals coming out of Malaysia and Thailand indicate that On the positive side, both THAI and MAS enjoy good reputations the two flag carriers, Malaysia Airlines (MAS) and Thai Airways when it comes to gracious inflight service and substantial and efficient TInternational (THAI), are to remain under government control route networks. for longer than potential investors had been led to understand in the Conversely, it is no secret that government controlled airlines take last 12 months. longer to react to changing economic circumstances, stall decisions However, these are not surprising developments when the current if they interfere with political objectives and often tolerate weak domestic political circumstances of the two countries are taken into managers and staff unions frightened that jobs might go under a account. In Thailand, the new government will be a coalition, with management with objective [foreign] input at board level. its leading member party, Thais Love Thais, fervently advocating that But keeping airlines in government hands can be costly for the Thailand keep the ownership of its ‘aviation farm’ within national taxpayer. Even lean and mean airlines are cautious about their future borders. Despite assurances from THAI that 20% of THAI will be sold in an increasingly competitive aviation environment. off to private interests, insiders are beginning to doubt that the March In one way or another the writing is on the wall for flag carriers deadline for the sale can be kept. controlled by governments. They will either have to shape up to new In Malaysia, the national government, for reasons that are not yet standards of performance under their political fathers or they will have totally clear, bought the 29% of MAS that was formerly owned by Ma- to accept at least partial privatisation to stabilise revenue and convert laysian entrepreneur, Tan Sri Tajudin Ramli. As a result, the Government their enormous present and potential assets into economic reality. owns 60% of the loss-making national carrier. At some stage, unless it receives a waiver from the government – and that is possible – it is obliged to make a general offer for the remainder of MAS now that it holds more than 35% equity in the loss-making carrier. Once again politics have complicated the possible sale of some of MAS to foreign interests. Malaysia’s leaders fear foreign board members would make BARRY GRINDROD decisions at MAS that would reflect badly on the government. So what Publisher/Managing Editor could the future hold for those airlines? The Association of Asia Pacific Airlines members and contact list: Air New Zealand Dragonair Philippine Airlines Managing Director, Mr Gary Toomey Chief Executive Officer, Mr Stanley Hui Chairman, Mr Lucio Tan General Manager Group Corporate Communication Manager, VP Corporate Communications, Communications, Mr David Beatson Ms Laura Crampton Mr Rolando Estabilio Tel: (64 9) 336 2770 Fax: (64 9) 336 2759 Tel: (852) 3193 3193 Fax: (852) 3193 3194 Tel: (632) 817 1234 Fax: (632) 817 8689 All Nippon Airways EVA Air Qantas Airways President and CEO, Mr Kichisaburo Nomura President, Mr Frank Hsu Managing Director, Mr James Strong Director, Public Relations, Mr Koji Ohno Deputy Senior Vice President, Mr K. W. Nieh Director of Public Affairs, TBA Tel: (81 3) 5756 5675 Fax: (81 3) 5756 5679 Tel: (8862) 8500 2585 Fax: (8862) 2501 7599 Tel: (612) 9691 3760 Fax: (612) 9691 4187 Ansett Australia Garuda Indonesia Royal Brunei Airlines General Manager International, Mr Gary Kingshott President, Mr Abdulgani Chairman, Dato Paduka Awang Haji Alimin Manager Group Public Affairs, VP Corporate Affairs, Mr Pujobroto Bin Haji Abdul Wahab Ms Heather Jefferey Tel: (6221) 380 0592 Fax: (6221) 368 031 Tel: (673 2) 343 368 Fax: (673 2) 343 335 Tel: (61 3) 9623 3540 Fax: (61 3) 9623 2887 Japan Airlines Singapore Airlines Asiana Airlines President, Mr Isao Kaneko Deputy Chairman and CEO, President, Mr Park Sam Koo Director, Public Relations, Mr Geoffrey Tudor Dr Cheong Choong Kong Managing Director, PR, Mr Hong Lae Kim Tel: (813) 5460 3109 Fax: (813) 5460 5910 VP Public Affairs, Mr Rick Clements Tel: (822) 758 8161 Fax: (822) 758 8008 Tel: (65) 541 4030 Fax: (65) 545 6083 Korean Air Cathay Pacific Airways President and CEO, Mr Shim Yi Taek Thai Airways International Chief Executive Officer, Mr David Turnbull VP Public Relations, Mr Seung Jae Noh President, Mr Bhisit Kuslasayanon Corporate Communications General Manager, Tel: (822) 656 7092 Fax: (822) 656 7288/89 Director, PR, Mrs Sunathee Isvarphornchai Mr Alan Wong Tel: (662) 513 3364 Fax: (662) 545 3891 Tel: (852) 2747 8868 Fax: (852) 2810 6563 Malaysia Airlines China Airlines Chairman, Tan Sri Tajudin Ramli Vietnam Airlines President, Ms Christine Tsung Tsai-yi Head of Industry Affairs, President and CEO, Nguyen Xuan Hien Director, Public Relations, Mr Scott Shih Ms R. Nordiana Zainal Shah Dep Director, Corp Affairs, Nguyen Huy Hieu Tel: (8862) 2514 5750 Fax: (8862) 2514 5754 Tel: (603) 2165 5154 Fax: (603) 2163 3178 Tel: (84-4) 873 0928 Fax: (84-4) 827 2291 Feb 01 | Orient Aviation | DI A RY OUGH CALL: Lobbying is intensifying A representative of one lobbying bloc said across the world aviation community as Strong, who will soon hand over the Qantas Tthe April voting date approaches for reins to his deputy Geoff Dixon, is appealing the election of Pierre Jeanniot’s successor because of his reputation for strong financial as director general of the International Air management, his winning media style and Transport Association (IATA). According to in- his record of turning a variety of companies terested parties (particularly in the Asia-Pacif- around during his career. Now Europe-based, ic), the short list is down to four candidates, Sutch has impeccable airline and manage- with two Asia-Pacific aviation leaders, Qan- ment credentials and knows the business tas Airways’ chief executive, James Strong, from the inside out. Gifted and admired as The two front runners for the IATA director and John Swire & Sons executive director a consummate communicator, manager and general’s job following the retirement of and former Cathay Pacific Airways chair- corporate diplomat, Sutch is equally attrac- Pierre Jeanniot, man, Peter Sutch, the favoured contenders.