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WILL SLEEPY MACAU AWAKE? Macau Ends Aviation Monopolies and Plans Larger Role in Southern China’S Greater Bay Area

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WILL SLEEPY MACAU AWAKE? Macau Ends Aviation Monopolies and Plans Larger Role in Southern China’S Greater Bay Area Vol. 26 No. 6 July-August 2019 orientaviation.com ZHAOQING GUANGZHOU HUIZHOU FOSHAN DONGGUAN SHENZHEN ZHONGSHAN HONG KONG JIANGMEN ZHUHAI MACAU WILL SLEEPY MACAU AWAKE? Macau ends aviation monopolies and plans larger role in southern China’s Greater Bay Area Industry tech leaders Asia-Pacific LCCs The Russian invasion: work to advance third force at seeking Asia’s sustainable aviation Paris Air Show seafood and sun The future of bookingtravel INDUSTRY INSIGHT REPORTonline LEAP-1A LEAP-1B ENGINES AVAILABLE NOW Available for short- or long-term lease and “pooling-like” preferred access. Willis Lease Finance Corporation Power to Spare – Worldwide® +1 415.408.4742 [email protected] CONTENTS Volume 26, Issue 6 COVER STORY 14 GUANGZHOU ZHAOQING HUIZHOU ORIENT AVIATION MEDIA GROUP 17/F Hang Wai Commercial Building, FOSHAN DONGGUAN 231-233 Queen’s Road East, Wanchai, Hong Kong Editorial (852) 2865 1013 E-mail: [email protected] SHENZHEN Website: www.orientaviation.com ZHONGSHAN HONG Mailing address: KONG GPO Box 11435 Hong Kong JIANGMEN ZHUHAI MACAU Publisher & Editor-in-Chief Christine McGee E-mail: [email protected] WILL SLEEPY Associate Editor & Chief Correspondent MACAU AWAKE? Tom Ballantyne Tel: (612) 9638 6895 Macau ends aviation monopolies as it plans for Fax: (612) 9684 2776 E-mail: [email protected] a larger role in China’s Greater Bay Area strategy Asia Editor Will Horton Tel: (852) 2865 1013 E-mail: [email protected] COMMENT 21 Rush to fill route gap after Jet Airways grounding North Asia Correspondent 5 Getting the message out Geoffrey Tudor ORIENT AVIATION INSIGHT REPORT Tel: (813) 3373 8368 ADDENDUM The future of online travel bookings E-mail: [email protected] 6 Russians embrace Asia’s sun and seafood 19 Advances in mobile technology and the Internet Photographers 7 Leading industry CTOs commit to sustainable of Things have shaken up the traditional business Rob Finlayson, Graham Uden, aviation goals model of booking travel but GDSs are fighting Ryan Peters 7 Emerging Nansha Leasing funds first China back Chief Designer Southern A350-900 Chan Ping Kwan Printing Printing Station(2008) ADMINISTRATION General Manager Shirley Ho E-mail: [email protected] NEWS BACKGROUNDERS INDUSTRY ADDENDUM ADVERTISING 8 Asia-Pacific LCCs third force at Paris Air Show 22 Honeywell Forge is latest entrant in fast-growing market for analytics software Asia-Pacific, Europe & Middle East Christine McGee 22 Lanza to supply All Nippon Airways with Tel: (852) 2865 1013 sustainable aviation fuel from 2021 E-mail: [email protected] 22 ST Engineering trials MRO drones on Air New The Americas / Canada Zealand aircraft Barnes Media Associates Ray Barnes Tel: (1 434) 770 4108 Fax: (1 434) 927 5101 E-mail: [email protected] [email protected] 10 Flying into the sun – Qantas closer to decision on historic non-stop Sydney-London flights Follow us on Twitter @orientaviation 11 Airlines “go beyond” to identify IT talent 17 United Airlines re-aligns trans-Pacific network to © All rights reserved benefit from U.S. domestic passenger feed Wilson Press HK Ltd., 18 Biometrics to eliminate document duplication at 22 AFI KLM E&M and Airbus explore virtual engine Hong Kong, 2019 congested airports? MRO JULY-AUGUST 2019 / ORIENT AVIATION / 3 Now you can accept payments in virtually any form. Saying yes to alternative forms of payment means saying yes to new streams of revenue. Our payment solutions integrate easily with your current systems, helping you accept AFPs at a lower cost. And navigate the global payments market with ease. A more complete payment program starts with UATP. Learn more at UATP.com. COMMENT Getting the message out Aircraft and engine manufacturers have invested At the Annual General Meeting of the International Air billions in research and development of new generation Transport Association in Seoul in June, director general products. Airlines are spending tens of billions buying and CEO, Alexandre de Juniac, pointed out public concern these aircraft because they fly more efficiently. As about environment issues had spiked worldwide. One a result, there is a dramatic reduction in fuel and example was Europe, where Sweden is the birthplace of maintenance which in turn has brought about a massive “flight shaming” of those who travel by air. drop in CO2 emissions. “Unchallenged, this sentiment will grow and spread,” The industry takes its environmental responsibilities he said, and added that along with reducing emissions, very seriously. Its acceptance and support for CORSIA the industry must collectively tell its story more (Carbon Offsetting and Reduction Scheme for effectively. He is, of course, right. Airline chief executives International Aviation) is proof of that. at the AGM asked why the general public does not know From the beginning of this year all airlines have been more about the enlightened approach the industry has to recording their emissions in preparation for the official mitigating climate change. introduction of CORSIA next year. Aviation is the only Airlines could start with their passengers, a captive global industry to agree to a global market-based measure audience. More than 4 billion passengers took an airplane to counter climate change damage. journey last year and 4.9 billion passengers are forecast It is forecast CORSIA will mitigate around 2.5 billion to take to the air in 2019. The industry could tell the good tonnes of CO2 between 2021 and 2035, an annual story of aviation’s pro-active strategy for cutting CO2 average of 164 million tonnes. Yet, despite years of effort, emissions via seat back literature or screened videos there is little recognition of this important progress. aboard commercial flights. In general, the public still seems to believe aviation It is an idea that should be adopted immediately by is a polluter and that the industry is doing nothing to airlines around the world. No one is pretending global be otherwise. There have even been calls in Europe for warming is a myth. But carriers must get out their story governments to ban short haul flights and for people to that they are serious about reducing emissions to prevent opt for land transport. irreparable damage to their businesses. ■ TOM BALLANTYNE Associate editor and 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” JULY-AUGUST 2019 / ORIENT AVIATION / 5 ADDENDUM Russians seek Asia’s seafood and sun Its a Russian invasion. Latest Irkutsk City with Cam Ranh, an statistics from global travel hour south of its much busier analysis firm, ForwardKeys, reveal sister, Nha Trang. Vladivostok Air growth in Russian leisure travellers has commenced daily flights from to the Asia-Pacific skyrocketed by Vladivostok and Khabarovsk also 62.8% for the 12 months to May to Cam Ranh. this year. Russian business travel Guangzhou-headquartered to the region also rose, by 27.5%. China Southern Airlines (CSA) The huge spike in Russian has increased frequencies from visitors is the result of a doubling Urumqi to Russian cities. To better in direct flights from Russia serve demand during the peak to Asian tourist destinations, Russian carriers. of US$1,600 per stay in Vietnam travel season, CSA has resumed particularly Vietnam and Thailand, Vietnam has emerged as a compared with an overall average its Urumqi-Saint Petersburg with overall seat capacity favorite destination for Russians for foreign visitors of $900, the direct route with a four times a increasing by 38%. and is expected to soon surpass Vietnam National Administration week service and has increased Vietnam is experiencing the Thailand, a nation long favored by of Tourism reports. direct flights, also to four a week, biggest rise in Russian airline Russian holidaymakers as their New direct air services from between Urumqi and Moscow. seat capacity, at 153%, followed number one destination. Last year, multiple secondary and tertiary Total international arrivals by Thailand and the Maldives, Vietnam received a record high of cities in Russia to Vietnam’s in the Asia-Pacific rose 3.8%, which saw growth of 125% and 606,000 Russian tourists, which popular beach towns underpin the from May 2018 to April this year. 58%, respectively. South Korea was 4% of foreign tourist arrivals northern European tourism boom. Russia’s 54.5% increase meant and India reported seat capacity in the country. In 2018, Russia’s S7 Airlines Europe was the top growing origin expansion of more than 30% from Russians spend an average launched direct flights connecting continent, up 6.3%. ■ September 24-26, 2019 • Singapore The region’s premier event for Maintenance, Repair and Overhaul! 5,000+ 200+ Solution Co-located with Attendees Providers • Integrated content that encompasses end-to-end MRO • Key decision makers, trends and forecasts • Strategies to prepare for the next generation workforce Learn more at: • Challenges and opportunities for AI, Robotics and more in MRO mroasia.aviationweek.com • Insight on Big Data and how it can improve operations • Meet the Buyers, face-to-face meetings between buyers and suppliers 6 / ORIENT AVIATION / JULY-AUGUST 2019 ADDENDUM China Southern Airlines chooses Nansha leasing for its first A350-900 China Southern Airlines’ (CSA) acceptance of its first A350-900 XWB had significance for China’s lessor industry as Guangzhou Nansha Nanhang Tiandong Leasing Company, based in Guangzhou Nansha free-trade zone (FTZ), leased the aircraft to the airline. Aircraft lessors and FTZs have grown rapidly in China as a result of favourable government regulation and investor appetite for stable returns. The largest FTZ is Tianjin Dongjiang, where more than 1,500 aircraft are on lease, NYU Shanghai adjunct professor and an aircraft some are in aviation, including international lease with an A321 the different FTZs each region appraiser, David Yu, told Orient SkyCo and CSA’s leasing arm.
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