VOL. 7 NO. 8 JUNE 2000 MAGAZINE OF THE ASSOCIATION OF ASIA PACIFIC AIRLINES DEREGULATION Is it working in the Asia-Pacific? ATR’s ‘room’ Start-ups abound as with a view Indonesia’s domestic over Mt. Everest market flourishes SPECIAL REPORT: Training in the Asia-Pacific VOL. 7 NO. 8 JUNE 2000 COVER STORY N E W S Cathay commercial flight pioneers trans-Polar route 10 FAA suspends Qantas maintenance permit 10 DEREGULATION Two Taiwanese carriers grounded 11 IN THE China Southern, MTU sign engine overhaul deal 11 Business round-up 12 ASIA-PACIC Page 16 SIA boost for A3XX 24 Cargo centre stage in Hong Kong open skies feud 28 Is it working? Business digest 45 VOL. 7 NO. 8 JUNE 2000 FEATURES Start-up frenzy in Indonesia as domestic air travel soars 26 MAGAZINE OF THE ASSOCIATION OF ASIA PACIFIC AIRLINES The Lufthansa and SAir groups woo the Asia-Pacific in their bids for global supremacy 32 S P E C I A L R E P O R T Training: Could Hong Kong become Asia’s leading pilot training centre? DEREGULATION New rival players say yes 37 Is it working Flying schools growing fast in China 39 in the Asia-Pacific? ATR’s ‘room’ Start-ups abound as with a view Indonesia’s domestic over Mt. Everest market flourishes COMMENT SPECIAL REPORT: Training in the Asia-Pacific Behind the Cockpit Door by The Captain 36 Turbulence by Tom Ballantyne 50 I N F L I G H T A S I A A 16-page pull-out dedicated to onboard services and technology. In this issue: IFE manufacturers need to lift their game, says Airbus Industrie; when live TV does not need to be live TV; top survey lists six Asia-Pacific carriers in its seven five-star airlines; PEDS problems still a mystery; Network: news and people moves. PUBLISHER ADVERTISING Wilson Press Ltd Hong Kong & China: Asia : Association of Asia Pacific Airlines GPO Box 11435 Hong Kong Wellington Ng Wilson Press Ltd Secretariat Tel: Editorial (852) 2893 3676 Tel: (852) 2893 3676 Christine McGee 5/F, Corporate Business Centre, Fax: Editorial (852) 2892 2846 Tel: (852) 2893 3676 151 Paseo de Roxas, 1225 Makati, E-mail: [email protected] Photographers Fax: (852) 2892 2846 Metro Manila, The Philippines Andrew Hunt (chief photographer), Director General: Richard Stirland Publisher and Managing Editor Rob Finlayson, Hiro Murai The Americas / Canada : Commercial Director: Carlos Chua Barry Grindrod Robyn Tucker International Marketing Technical Director: Leroy Keith Design & Production Robyn Tucker Tel: (632) 840 3191 Joint Publisher Ü Design + Production Tel: (1-441) 295 8200 Fax: (632) 810 3518 Christine McGee Fax: (1-441) 295 8210 Colour Separations Published 10 times a year Chief Correspondent Twinstar Graphic Arts Co. Europe : February, March, April, May, June, Tom Ballantyne REM International July/August, September, October, Tel: (612) 9638 6895 Printing Stephane de Remusat November and December/January. Fax: (612) 9684 2776 Lammar Offset Tel: (33 5) 34 27 01 30 © All rights reserved Printing Company Ltd Fax: (33 5) 34 27 01 31 Wilson Press Ltd, Hong Kong, 2000. Special Correspondent Patrick Garrett Distributed by Australasia : Speedmail Ltd Phil Grose The views expressed in this Tel: (61 2) 9820 7920 magazine are not necessarily Fax: (61 2) 9820 7756 those of the Association of Mobile: (61 0) 417 7449943 Asia Pacific Airlines. E-mail: [email protected] June 2000 | Orient Aviation | 5 PUBLISHER’S LETTER REAL HOPE IN INDONESIA s a supporter of the underdog, this writer would love to money again. see Garuda Indonesia progress to a healthy economic life. Abdulgani admits there is still a way to go. The airline appears A After years of mis-management and corruption to be making the right noises and has won the respect of those that by Suharto cronies and, more recently, a crippling environment of matter among his creditors. The president is close to finalising a deal economic and social upheaval, as we report on page 26, there ap- with them to restructure the US$1.36 billion of debt. He is confident pears to be real hope this will eventually be achieved. Garuda will be in good enough shape to privatise in 2003. Those close to the aviation industry in Indonesia talk about the As Indonesia starts to rebuild, both physically and psychologically, good old days, pre the mid-1980s, when Garuda had a fleet of more the aviation industry is booming. But care, great care, needs to be than 90 aircraft, made money and was respected on the world avia- taken. Stability is a fragile commodity in Indonesia. tion stage. These same people will tell you about the airline president It is said that the country has 50 carriers, with the number of who insisted on re-investing every cent the carrier made. He said if he start-ups increasing each month. One wonders how the country put the money in the bank, as had been specifically requested by the is going to support them all. And internationally, the all important government, it would disappear, siphoned off into some disguised tourist industry has still to be won back in large numbers to add Suharto family account. Yes, it was that bad. substance to the national bottom lime. Needless to say he was replaced, and after being ‘raped and But so far so good. A victory for the good guys? Let’s hope so. abused’ by a succession of puppet managements, Garuda moved to the brink of bankruptcy, accumulating massive debt. Then came the fall of Suharto. It coincided with a peaceful and sincere ‘people’s protest’ by the long suffering Garuda staff. It was a turning point for Garuda. Since then two bankers, first Robby Djohan and now Abdul- BARRY GRINDROD gani, have been put in place to turn Garuda around. It is working. Publisher/Managing Editor Garuda, whose workforce has been slashed by one third, is making The Association of Asia Pacific Airlines members and contact list: Air New Zealand Dragonair Philippine Airlines Managing Director, Mr Jim McCrea Chief Executive Officer, Mr Stanley Hui Chairman, Mr Lucio Tan GM Govt & International Affairs, Corporate Communication Manager, VP Corporate Communications, Mr Graeme McDowall Ms Laura Ayson Mr Rolando Estabilio Tel: (649) 366 2605 Fax: (649) 309 4134 Tel: (852) 2590 1260 Fax: (852) 2590 1333 Tel: (632) 817 1234 Fax: (632) 817 8689 All Nippon Airways EVA Air Qantas Airways Chairman, 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, Mr Bernard Shirley 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 Executive Chairman: Mr Rod Eddington President, Mr Abdulgani Chairman, Dato Paduka Awang Haji Alimin EGM Corporate Affairs, Ms Pamela Catty VP Corporate Affairs, Mr Pujobroto Bin Haji Abdul Wahab Tel: (631) 9623 3471 Fax: (613) 9623 3663 Tel: (6221) 380 0592 Fax: (6221) 368 031 Tel: (673 2) 343 368 Fax: (673 2) 343 335 Asiana Airlines Japan Airlines Singapore Airlines President, Mr Park Sam Koo President, Mr Isao Kaneko Deputy Chairman and CEO, Managing Director, PR, Mr Hong Lae Kim Director, Public Relations, Mr Geoffrey Tudor Dr Cheong Choong Kong Tel: (822) 758 8161 Fax: (822) 758 8008 Tel: (813) 5460 3109 Fax: (813) 5460 5910 VP Public Affairs, Mr Rick Clements Tel: (65) 541 4030 Fax: (65) 545 6083 Cathay Pacific Airways Korean Air Chief Executive Officer, Mr David Turnbull President and CEO, Mr Shim Yi Taek Thai Airways International Corporate Communications Manager, VP Public Relations, Mr Seung Jae Noh President, Mr Thamnoon Wanglee Quince Chong Tel: (822) 656 7092 Fax: (822) 656 7288/89 Director, PR, Mrs Sunathee Isvarphornchai Tel: (852) 2747 5214 Fax: (852) 2141 5214 Tel: (662) 513 3364 Fax: (662) 545 3891 Malaysia Airlines China Airlines Chairman, Tan Sri Tajudin Ramli Vietnam Airlines President, Mr Sandy K. Y. Liu Head of Industry Affairs, President and CEO, Mr Dao Manh Nhuong 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 June 2000 | Orient Aviation | PERS P ECTIVE EAVY-HANDED: Sir Richard shall is to take up the BA board vacancy at holding, but it will allow him to retain his Branson, owner of the no-frills 25%-owned Qantas Airways created by the majority grip on the carrier. Hstart-up, Virgin Blue, has apologised forced departure of ex-BA CEO, Bob Ayling. personally to several small Australian com- It was deemed “inappropriate” for Edding- CYBER AVIATION: Like so many other panies trading with the name Virgin in their ton, until April 30 the executive chairman companies in Hong Kong, mainland China’s titles after they received letters from Sir of Qantas rival, Ansett Australia, to fill the China National Aviation Corp (CNAC) has Richard’s lawyers instructing them to wind seat. Gary Pemberton, the former Qantas jumped into corporate bed with Young Turk, up their businesses. Several of the compa- chairman who has decided to opt out of Richard Li, the second son of the richest man nies, which had been trading under names the aviation rat race, has accepted a board in the Special Administrative Region (SAR) incorporating the word Virgin long before directorship from mining multi-national of China. CNAC and a Li company, Cyber the British airline group arrived in Australia, Rio Tinto as an occasional respite from his Works, have formed an alliance to create were told to disconnect their telephones and Queensland race-horsing interests.