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Determined to Be Viable Vol. 25 No. 7 September 2018 orientaviation.com DETERMINED TO BE VIABLE CEO Karam Chand pushing Royal Brunei Airlines beyond its legacy carrier comfort zone Asia-Pacific LCCs Manufacturers CEO Piya Yodmani bet on long haul chip away at walks away from expansion delivery backlog Nok Air Data analytics definingpassenger modern INDUSTRY INSIGHT SPECIALmanagement REPORT B:221 mm T:202 mm S:182 mm TWO UNRIVALED FAMILIES ONE WIDEBODY LEADER B:285 mm S:253 mm T:273 mm The 777X is generations ahead of its class in both efficiency and passenger experience. The same is true of the 787 Dreamliner. Combine these two twin-aisle families—the opportunity for greater network versatility is undeniable. That’s what you can expect from Boeing, the widebody leader. boeing.com/widebody Job Number: 10966409 REV 1 Client/Brand: Boeing/BCA Date: 8-14-2018 2:30 PM APPROVALS File Name: 10966409_R1_BCA_Widebody_202x273.indd QC: Steve Jablonoski Bleed: 221 mm x 285 mm Gutter: None Publications: Orient Aviation, African Aerospace, PA: Steve Hutchings PR: Pat Owens Trim: 202 mm x 273 mm Folds: NoneNone Aviation Business ME RET: Greg Olsen PP: Chris Joyce Safety: 182 mm x 253 mm Media/Color Sp: PRINT/4 COLOR Notes: None AB: Sandra Sanchez TM: Teddy Nagaro/Kate Vilt Scale: 1=1 Country: None Vendor: None GCD: None Actual Size: 202 x 273 mm Language: English Output%: None Colors: Cyan, Magenta, Yellow, Black AD: Kate deLongpre Fonts: Helvetica Neue (95 Black, 55 Roman; Type 1) CW: Jeff Hampton AE: Megan Paul/Cara Hays ALL CONTENT WITHIN THIS FILE IS FOR OUTPUT ONLY BY END PRINTER/VENDOR. CHANGES, SHARING AND/OR DISTRIBUTING CONTENT IN WHOLE OR IN PART ARE STRICTLY PROHIBITED. LICENSING RIGHTS AND APPROVALS MUST BE REQUESTED AND APPROVED TO/BY FCB CHICAGO. Images: 10978888_WB_Plane_C02_R1.tif (333 ppi; CMYK), Boeing_white_50mm.eps CONTENTS Volume 25, Issue 7 COVER STORY 15 DETERMINED PUBLISHED BY TO BE VIABLE ORIENT AVIATION MEDIA GROUP Mailing address: Royal Brunei Airlines CEO, Karam Chand, GPO Box 11435 Hong Kong Office: embedding financial accountability 17/F Hang Wai Commercial Building, into the legacy carrier’s operations as 231-233 Queen’s Road East, Wanchai, Hong Kong it builds a modern airliner fleet Tel: Editorial (852) 2865 1013 E-mail: [email protected] Website: www.orientaviation.com Publisher & Editor-in-Chief Christine McGee E-mail: [email protected] Chief Correspondent Tom Ballantyne Tel: (612) 9638 6895 Fax: (612) 9684 2776 E-mail: [email protected] Greater China Correspondent COMMENT 14 International Civil Aviation Organisation Dominic Lalk Tel: (852) 2865 1013 5 Second time around for region’s long haul investigators don’t rule out third party role in E-mail: [email protected] low-cost carriers MH370 disappearance North Asia Correspondent 17 Airbus embarks on big push for A220 business Geoffrey Tudor ADDENDUM Tel: (813) 3373 8368 E-mail: [email protected] 6 Nok Air’s CEO hands over carrier to new leadership India Correspondent R. Thomas 6 HNA Group turmoil following co-founder’s Tel: (852) 2865 1013 accidental death E-mail: [email protected] 6 New IATA study forecasts significant growth in Photographers aviation jobs 19 Entering the era of fewer pilots flying long-haul Rob Finlayson, Graham Uden, Ryan Peters 7 Air New Zealand and the Qantas Group report routes? consecutive profit highs Chief Designer Chan Ping Kwan 7 SriLankan Airlines to hire airline veteran to keep INDUSTRY ADDENDUM the flag carrier flying? 20 CFM International and the International Air Printing Printing Station(2008) Transport Association agree on MRO code of MAIN STORY conduct ADMINISTRATION 10 Asia’s low-cost carriers bet on long haul 20 India’s Vistara orders Bluebox portable streaming General Manager expansion platform Shirley Ho E-mail: [email protected] 20 Travelport embraces IATA’s New Distribution Capability ADVERTISING 20 Orix Corporation buys into HNA Group-controlled Asia-Pacific, Europe & Middle East lessor Avolon Clive Richardson Tel: (44) 7501 185257 E-mail: [email protected] INDUSTRY INSIGHT SPECIAL REPORT Data analytics defining modern passenger The Americas / Canada Barnes Media Associates management Ray Barnes 21 Easing passenger irritation at Asia-Pacific Tel: (1 434) 770 4108 Fax: (1 434) 927 5101 12 California comfort for record breaking non-stop airports E-mail: [email protected] Singapore-New York flights [email protected] NEWS BACKGROUNDERS Follow us on Twitter @orientaviation 8 Manufacturers chip away at aircraft backlog also - keep up with the news of the week with Orient Aviation’s Week in the 13 The “Connected” aircraft will transform airline Asia-Pacific operations © All rights reserved 14 London School of Economics study forecasts new Wilson Press HK Ltd., technology could save airlines US$15 billion a 22 Hong Kong International Airport a winner in Hong Kong, 2018 year by 2035 global airport efficiency study SEPTEMBER 2018 / ORIENT AVIATION / 3 New Distribution Conversations We’ll manage IATA’s NDC. So you don’t have to. In today’s exciting world of evolving distribution strategies, as the first NDC Level 3 Certified aggregator, we don’t believe the conversation should be about any single source of content or connectivity, whether that’s IATA’s NDC, API, classic ATPCo – or whatever new technology comes next. Instead, we believe that we should all be around the tech table, talking about ways to ensure that we continue to make the experience of managing and buying travel continually better for everyone. How can I maximize value from IATA’s NDC? Download our eBook and join the conversation travelport.com/ndc OrientAviation_Ad_1_R1_273x202mm_AW.indd 1 2/8/2018 2:25 PM COMMENT Second time round for long haul LCCs When the AirAsia Group pioneered long-haul, low-cost At present, the LHLCC market share is tiny, at around 2% flying in 2009 with the launch of Kuala Lumpur-London and on Asia-Europe routes, but it is increasing. An indication of then Kuala Lumpur-Paris in 2010, naysayers abounded. the future was demonstrated by the AirAsia Group’s mid-July Unfortunately, they were right. A combination of a fragile decision to order another 34 A330neo. The Farnborough Air global financial environment and fuel prices that were going Show signing increased the company’s commitment for the through the roof shut down the routes in 2012. type to 100. Eight years on, although fuel is again on the rise, the The order by Bamboo Airlines for 20 B787-9s should operating economics of new generation aircraft have raise a red flag among its domestic competitors. These convinced some forward thinkers in the industry that the era aircraft were built to fly long haul. It is evident that increasing of viable long-haul low-cost flying has arrived. numbers of Asia-Pacific’s middle class travelers are enjoying In recent months, Japan Airlines announced it would budget flying within the region and are now looking to do the join early adopters, AirAsia X and Singapore Airlines-owned same further afield. Scoot, in setting up a subsidiary to fly long-haul low-cost They will accept a no-frills cabin and ancillary charges for from 2020. The LHLCC, called TBL (To Be Launched) Ltd will food and services if they can fly to their desired destinations commence yet to be announced services with two B787s. at prices they can afford. When the trend for LHLCC flying In Vietnam, already home to big spending LCC Vietjet, takes off in the region, the foresight of AirAsia X, Qantas- new LCC, Bamboo Airlines, is targetting destinations in North controlled Jetstar, SIA’s Scoot and JAL’s TBL Ltd in moving America and Europe for its privately funded network. into the market early should give full service carriers pause. Europe’s Norwegian Air and Lufthansa-owned Eurowings They have been there once and have suffered as budget already are operating into Asia. LEVEL, the LHLCC of the flying absorbed 50% plus in some Asia-Pacific markets from a International Airline Group (IAG) is flying to North and South standing start 16 years ago. America from Europe. Analysts predict it won’t be long before A broad church of thought among analysts is that full it turns its attention to the Asia-Pacific, home of the world’s service carriers who ignore the threat of the LHLCC market fastest growing airline market. do so at their peril. ■ 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” SEPTEMBER 2018 / ORIENT AVIATION / 5 ADDENDUM Nok Air CEO quits after 11 months Piya Yodmani, who was that culminated in a long dispute competitive Asian LCC sector. goal of Piya when he took over promoted from deputy CEO with the carrier’s pilots. The In the last 12 months management of the carrier. to the top job at Bangkok- cockpit protests forced the the airline has improved its Elsewhere in Thailand, based Nok Air a year ago, cancellation of hundreds of Nok reputation for chronic delays the industry awaits the impact unexpectedly resigned from Air flights and heavy financial by delivering an average on Sumeth Damrongchaitham, his positions at the low-cost losses for an LCC that already time performance of 88%, an the president of Thai Airways carrier on August 23. His was struggling in the very improvement that was a key International (THAI), on the acting successor is Pravej carrier’s operations and bottom Ongarsittigul, a Nok director line. Sumeth has a big job ahead and chairman of the executive of him, especially as he has committee at the airline.
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