New Normal for China Airlines

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New Normal for China Airlines Vol. 24 No. 5 June 2017 orientaviation.com NEW NORMAL FOR CHINA AIRLINES Chairman Nuan-Hsuan Ho has adapted the airline’s strategy to Taiwan’s changed political climate China to open Japan’s low-cost THAI makes more civilian carrier, Peach Aviation, progress in airspace accepts bitcoin leadership search INDUSTRYBig Data INSIGHT changingaviation face of Asia-Pacific 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 5 COVER STORY 20 PUBLISHED BY ORIENT AVIATION MEDIA GROUP 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 NEW NORMAL Publisher & Editor-in-Chief Christine McGee AT TAIWAN’S E-mail: [email protected] Chief Correspondent CHINA AIRLINES Tom Ballantyne Tel: (612) 9638 6895 China Airlines chairman, Nuan-Hsuan Ho, Fax: (612) 9684 2776 has profits in mind as his airline adjusts to E-mail: [email protected] a new political regime Greater China Correspondent Dominic Lalk Tel: (852) 2865 1013 E-mail: [email protected] COMMENT 18 China slow to succumb to Hawaii’s charms North Asia Correspondent 7 Baffled by bans 28 THAI makes progress in leadership search Geoffrey Tudor 28 By the book at HNA Group Tel: (813) 3373 8368 E-mail: [email protected] ADDENDUM 29 Airlines must adapt and “sell more stuff” 8 Counter intuitive Bellew strikes again 30 No more lost luggage from 2018 India Correspondent R. Thomas 8 China to open more airspace for civilian flights 30 ICAO calls out ASEAN for infrastructure shortfalls Tel: (852) 2865 1013 8 Air India boss says his staff are the “finest there 31 Sydney finally receives second airport go ahead E-mail: [email protected] is” Photographers 9 Asia’s airline association adds voice to laptop ban INDUSTRY ADDENDUM Rob Finlayson, Graham Uden, Ryan Peters protests 32 Malaysia Airlines extends AFI KLM E&M 9 Japan’s low-cost carrier, Peach Aviation, accepts agreement Chief Designer Chan Ping Kwan bitcoin for fares Printing Printing Station(2008) ADMINISTRATION General Manager Shirley Ho E-mail: [email protected] ADVERTISING Asia-Pacific, Europe & Middle East Clive Richardson 9 Airbus announces independent compliance panel 32 Asia’s MRO business to double by 2027 Tel: (44) 7501 185257 E-mail: [email protected] 32 Lufthansa Technik develops ground handling NEWS BACKGROUNDERS location software The Americas / Canada Barnes Media Associates 10 AirAsia to win region’s prize – AirAsia China 32 AerFin acquires Saudia’s 15 Embraer 170-LRs Ray Barnes 32 Mobil Jet Oil approved for PW4000 engines Tel: (1 434) 770 4108 Fax: (1 434) 927 5101 32 Alsim sells simulator to Indonesia E-mail: [email protected] 32 China’s CDB wins Mainland single aisle leases [email protected] INDUSTRY INSIGHT SPECIAL REPORT Follow us on Twitter @orientaviation Big Data changing the face of Asia-Pacific aviation also - keep up with the news of the week with Orient Aviation’s Week in 34 No place to hide from Big Data the Asia-Pacific 36 Getting to the heart of the engine © All rights reserved 16 Star loosens rules to attract new members 37 Pressure of keeping up with customer Wilson Press HK Ltd., 17 Air New Zealand leaves competitors in its expectations Hong Kong, 2017 slipstream 38 MRO transformed by Big Data impact JUNE 2017 / ORIENT AVIATION / 3 © AIRBUS, 2017. All rights reserved. Airbus, its logo and the product names are registered trademarks. Almost everything about the A330neo is new new A350 generation engines new wings with A350 sharklets new A350 cabin Flying further with less fuel The Airbus Widebody Family featuring the new Airspace cabin © AIRBUS, 2017. All rights reserved. Airbus, its logo and the product names are registered trademarks. Almost everything about the A330neo is new new A350 generation engines new wings with A350 sharklets new A350 cabin Flying further with less fuel The Airbus Widebody Family featuring the new Airspace cabin The PurePower® GTF™ Engine Geared for the future. Transforming aviation today. Airline operators are excited about the breakthrough fuel savings and unrivaled noise reduction they’re seeing from the GTF innovation today. Especially knowing they’ll stay years ahead of competitors that choose the engine based on conventional technology. Cleaner, greener and quieter. Experience the engine that’s geared for the future – flying today – at www.pw.utc.com. Connect with us 43277_P&W_GTF_GearedForFuture_OrientAviation.indd 1 5/19/17 2:27 PM Client: Pratt & Whitney Commercial Engines Ad Title: PurePower® GTF™ Engine Publication: Orient Aviation - June Trim: 202 x 273 mm • Bleed: 212 x 283 mm • Live: 182 x 253 mm COMMENT Baffled by bans Even if the U.S. government does not extend its ban on Asia-Pacific and South America? passengers’ personal electronic devices (PEDs) beyond Just as alarming is the knowledge that several hundred the Middle East and North Africa, the present ruling raises lithium-powered PEDs are being stored in cargo holds, serious issues of safety and security for airlines. where they remain out of reach of crew and where they In May, both European and U.S. security officials could catch fire. confirmed bans on PEDs being carried into the cabin from No one argues with the fact that the U.S. has the more airports worldwide could be imposed; information sovereign right to take additional security measures when that is greatly concerning to the International Air Transport intelligence information suggests it is necessary. But Association and its 265 members. Washington’s reaction is a perfect example of regulation on Apart from the operational disruption it is unleashing the run. in effected countries, the prohibition is producing knock There was no informed consultation with the airline on effects. Foreign tourists to the U.S. are dropping off and industry. The bans were announced without a common sense premium travel is being hit by business travelers who want to appraisal of unintended consequences of the bans. Airlines work on board with their laptops. want all that to change. IATA said the impact on airlines also includes higher costs IATA wants governments to increase checks on the at carriers for extra handling for hold baggage, departure ground before passengers board their flights. They would like delays from increased screening procedures, airlines’ sniffer dogs at airports where PEDs are perceived as threats liability for theft or damage to checked PEDs and a potential and believe security staff should receive more specialized reduction in flight frequencies based on lower yields. training to screen PEDs. The airline association estimated the total impact of the And one more point. Once again, airlines are largely bans will be $1.1 billion annually. bearing the cost and logistical burdens of implementing Imagine the cost to the industry if the bans spread to the government policy. Is that fair? ■ 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” JUNE 2017 / ORIENT AVIATION / 7 ADDENDUM Counter intuitive Bellew strikes again Malaysia Airlines Berhad (MAB) group an ancillary add-on. They will have a 36-inch managing director and CEO, Peter Bellew, seat pitch and will be sold as XL in size. is bucking the industry trend by including a “We believe premium economy will four-seat first class in the airline’s new A350s. damage our business class revenue in a very He also has decided, again against current negative way,” Bellew said, and added “the industry practice, that MAB will not have carrier will be creating a world class business premium economy on the new Airbus jets. product in the next 12 months and that Bellew told Orient Aviation in May that needs a very sharp focus’’.
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