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Administering the Cure Vol. 27 No. 2 March 2020 orientaviation.com ADMINISTERING THE CURE Virgin Australia CEO Paul Scurrah following his prescription for airline group’s recovery ATR pitches Nok Air co-founder, Orient Aviation’s Tom Ballantyne SKOL 42-600s Patee Sarasin, launches honored with a lifetime achievement for Asia’s high “tell all” tale of life at award at the inaugural Asia Media country airlines the top of the Thai LCC Awards in Singapore WHY SPEND TENS OF MILLIONS OF DOLLARS ON OVERHAULS WHEN YOU CAN LEASE THE ENGINES YOU NEED, WHEN YOU NEED THEM, FROM THE PIONEER IN INNOVATIVE, CUSTOMER-DRIVEN AVIATION SOLUTIONS? GE90 ENGINES AVAILABLE NOW. Available for short- or long-term lease. [email protected] | +1 561.349.8950 | www.willislease.com CONTENTS Volume 27, Issue 2 COVER STORY 16 ADMINISTERING ORIENT AVIATION MEDIA GROUP THE CURE 17/F Hang Wai Commercial Building, 231-233 Queen’s Road East, Hard-driving Wanchai, Hong Kong Virgin Australia CEO, Editorial (852) 2865 1013 Paul Scurrah, prescribing E-mail: [email protected] Website: www.orientaviation.com bitter medicine to Mailing address: treat the airline’s ills GPO Box 11435 Hong Kong Publisher & Editor-in-Chief Christine McGee E-mail: [email protected] Associate Editor & Chief Correspondent Tom Ballantyne Tel: (612) 9638 6895 COMMENT MAIN STORY Fax: (612) 9684 2776 5 V-shaped or pear-shaped economy ahead? 8 Dealing with the damage of the demon virus E-mail: [email protected] North Asia Correspondent ADDENDUM Geoffrey Tudor 6 Boeing blues add gloss to Airbus annual order Tel: (813) 3373 8368 book E-mail: [email protected] 7 Orient Aviation’s Tom Ballantyne wins inaugural Photographers lifetime achievement award at Asian Media Rob Finlayson, Graham Uden, Awards Ryan Peters Chief Designer INDUSTRY ADDENDUM Chan Ping Kwan 25 All Nippon Airways chooses Sony noise-cancelling Printing headphones for its first class cabins Printing Station(2008) 25 Recaro seating equips Vistara’s first 787-9 25 Bamboo Airways decides on Munich for Vietnam- ADMINISTRATION Germany direct flights 25 Sabre and MIAT Mongolian Airlines do deal for General Manager 7 Coronovirus a new obstacle to Air India sale the GDS’s Market Intelligence Solution Shirley Ho 25 Travelport wins the business of eight Pacific E-mail: [email protected] NEWS BACKGROUNDERS airlines and extends agreement with Malaysia 14 Etihad Aviation Group recovery derailed by virus Airlines ADVERTISING outbreak 26 ST Engineering and Vietnam Airlines explore 14 Etihad Airways first Gulf carrier to pledge to IATA joint MRO venture Asia-Pacific, Europe & Middle East gender equality campaign Christine McGee 22 ATR’s SKOL 42-600s deliver for North Asia high Tel: (852) 6438 3379 country carriers says manufacturer E-mail: [email protected] 23 Nok Air co-founder tells all in autobiography The Americas / Canada about his years leading the Thai LCC Barnes Media Associates Ray Barnes Tel: (1 434) 770 4108 26 THAI moves closer to short list of investors in Fax: (1 434) 927 5101 planned U-Tapao MRO facility E-mail: [email protected] 26 SIA Engineering enters six-year line maintenance [email protected] agreement with Air Innovation Korea Co. Ltd 26 Korean training academy orders ALSIM simulator Follow us on Twitter @orientaviation 26 Malaysia Airlines Group selects CPaT Global for its crew distance learning programs MARCH 2020 / 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 V-shaped or pear-shaped economy ahead? Little more than two months ago, the Asia-Pacific airline IATA’s preliminary estimate is the region’s airline industry is industry was looking at the beginning of 2020 with measured facing potentially US$57.3 billion in losses for the year. It will be optimism. The International Air Transport Association (IATA) the first annual decline in global passenger demand since the was predicting another 12 months of improved profitability Global Financial Crisis of 2008-2009. There has been little that and airline chiefs in the region were buoyed by an easing airlines can do to handle yet another event totally outside their in trade war tensions between the U.S. and China, a key to control but to cancel flights, rearrange schedules and remove improvement in the struggling and important air freight sector. capacity from their operations. But that optimism has been dashed as the region’s largest Qantas Airways Group CEO, Alan Joyce, has gone as far as aviation market, China, reels from the impact of the Novel suggesting some airlines may not survive the crisis. Whether Coronavirus epidemic, or COVID-19, on commercial airline that happens remains to be seen, but the damage to the bottom business. It is now clear the epidemic is worse than the SARS line, particularly for those already struggling financially, will be (Severe Acute Respiratory Syndrome) outbreak in 2003. significant. There have been more deaths and more victims of the If there are airline victims, it will probably depend on how virus. To a great extent, China has been isolated from the rest long the outbreak lasts. As usual, carriers have responded to of the world with many countries barring its citizens from the emergency in the way they always do by lending a helping entry. But thousands of cases have been confirmed across the hand. They are making risky flights into China to rescue their region, in Japan, Singapore, Thailand, Korea, Australia and most stranded nationals or flying in medical supplies to hospitals recently, in the Gulf states and Europe. The virus has taken hold treating victims. in dozens of countries well beyond the Asia-Pacific. Historically, the airline industry has proven to be resilient, Billions of dollars have been wiped from the economies of but this period will be a severe test of their ability to overcome Asia-Pacific nations which rely heavily on Chinese tourists and yet another crisis. Right now, we can only hope the SARS business. Airlines of course, have become a major casualty as experience is repeated and that the crisis will last for no longer passenger numbers plummet. than six months, followed by a rapid return to normality. ■ 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” MARCH 2020 / ORIENT AVIATION / 5 ADDENDUM Boeing blues add gloss to Airbus success While Airbus was reluctant to single-aisle sector, Airbus has make any direct comment about a backlog of 1,853 jets (64% rival Boeing’s misfortunes with share), compared with Boeing’s the 737 MAX at the Singapore 1,026 (36% share). Airshow last month, it was not At the Singapore briefing, slow to herald the spectacular Caudron forecast sales of its improvement in its market share A321XLR (Extra Long-Range) “I would not be surprised to Airbus planned to invest between in 2019. would exceed 1,000 within the see more than 1,000 XLRs being US$539 million and $1.08 billion With the U.S. manufacturer next ten years. Launched at the sold because this is changing the this year in the A220 program. reporting not a single jet sale Paris Air Show last year, firm way airlines are going to operate.” Last month Airbus increased in January, Airbus senior vice- orders for the type stand at More orders are in the its equity in the A220 program, president for marketing, Francois 450. He said the XLR is proving pipeline. Hong Kong-based China known as Airbus Canada, to Caudron, said at a briefing at the popular in the Asia-Pacific, with Aircraft Leasing Group CEO, Mike 75% from 50.1%, It teamed up airshow the European now leads five customers placing orders, Poon, said during the show the with the government of Quebec its rival in all segments of the including AirAsia, Cebu Pacific, lessor was considering an order province to buy Bombardier’s Asia-Pacific. Qantas Group and VietJet Air. for the long-range jet although a 33.5% holding. Sales of the In 2019 Airbus wrote 460 “The world and the airlines decision would likely not be made aircraft have been surprisingly orders compared with 46 for are just waking up to the capability until next year. The lessor also is successful since Airbus took Boeing, giving the Toulouse of the aircraft,” he said. “Having looking at the smaller A220. charge of the A220 program, manufacturer a 91% market produced the technical solution Separately, in Montreal, formerly the Bombardier CSeries, share. It also delivered 373 that delivered the performance, during a visit to the company’s with an order book of 658 with aircraft, compared with 109 it works and the customers A220 factory, Airbus CEO, 107 of the type delivered. By Tom deliveries for Boeing. In the immediately placed orders. Guillaume Faury, said last month Ballantyne. ■ 6 / ORIENT AVIATION / MARCH 2020 ADDENDUM Associate editor Tom Ballantyne named aviation conferences. He won the prestigious GE inaugural lifetime achievement winner at Aircraft Engines Award for the 2020 Aerospace Media Awards ASIA Best Air Transport Submission at the Royal Aerospace Society’s Tom Ballantyne, associate editor Zimbabwe, Zambia and Malawi Journalist of the Year Awards and chief correspondent of the and the territories of Angola in London in 1998.
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