Vol. 25 No. 7 September 2018 orientaviation.com

DETERMINED TO BE VIABLE

CEO Karam Chand pushing Royal Brunei 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 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

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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 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 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 veteran to keep INDUSTRY ADDENDUM the 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

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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 -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, Airlines announced it would budget flying within the region and are now looking to do the join early adopters, AirAsia X and -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 -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 - cockpit protests forced the the airline has improved its Elsewhere in , 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 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. no airline experience. Before Yodmani, whose resignation his appointment to head THAI, takes effect on September 22, he was managing director of appears to be departing on an asset management firm good terms. Nok chairman, that was 99.9% owned by Prasert Bunsumpun, said the the Ministry of Finance. The fifty-five year old had waited government department invests until all senior positions at the and manages state holdings, airline were filled before he including government-owned submitted his resignation. properties, across Thailand. Piya succeeded long- THAI has failed to report annual serving Patee Sarasin following a profits for most of the last period of management upheaval decade. ■

Internal turmoil continues at HNA Group

Not a week goes by without loan portfolio. It said management Feng, as sole chairman and In the meantime, Guang more news about the perceived conflicts had escalated into confirmedAdam Tan as chief Yang, a reported fundraiser perilous state of the HNA Group’s boardroom infighting following executive. for defeated 2016 presidential indebtedness. The group is the the recent accidental death of the Since then the Financial candidate, Jeb Bush, has left parent company of HNA Aviation group’s co-founder, Wang Jiang. Times has reported, Chen has the company. “It’s an absolute and the ultimate owner of several Wang died in late July when overseen the appointment of his mess now. It’s gone from under Mainland carriers. he fell backwards while taking son, Chen Xiaofeng, as a board pressure to complete internal In early September, the photographs of a church in director and deputy CEO of the politics and breakdown,” an Financial Times reported that Provence in France. On August group. His nephew also has unnamed source who has had the turmoil at the group was not 1, the HNA Group board quickly secured a senior management a long association with the HNA confined to its over-committed appointed co-founder, Chen role in the conglomerate. Group told the newspaper. ■

IATA global study forecasts jump in aviation jobs worldwide

An International Air Transport was identified by 48% of survey reasons to stay loyal to an said, but was not replacing Association (IATA) global respondents as a challenge, employer. them. Other areas of growth study has revealed that 73% mainly because of availability of Only 28% of respondents were security and roles for of respondents forecast the skilled candidates and their high believed current training regulators. major areas of job growth in salary expectations. programs were effective with IATA commissioned the the industry will be in ground Aviation human resources many of them complementing survey to better understand operations and the customer manages said that career their in –house training with the decisions aviation human service and cabin crew sectors progression ranked as a priority external partners to improve resources managers make to in the next two years. for 49% of their applicants staff performance. manage retention, training and Identifying and attracting and 33% of them valued Technology was changing skilled professionals for airlines, talented staff to their companies development and training as customer service roles, IATA airports and ground handlers. ■

6 / ORIENT AVIATION / SEPTEMBER 2018 ADDENDUM

Air New Zealand and Qantas remain top of the profit charts

For the fiscal year to June 30, 2018, Air New Zealand (Air NZ) and the Qantas Group reported impressive results. Air NZ announced net earnings of US$220 million for the year, the airline’s second best results in its history. In , the Qantas Group reported an after tax profit of US$685.5 million on an underlying profit of US$1.2 billion. Both carriers shrugged off rising fuel costs and intense competition to report record results. In Auckland in June, Air NZ CEO, Christopher Luxon, said in a local media interview that the past 12 months had been his toughest year since he took on the job of that powered the airline’s B787s Joyce, said all the Jetstar brands in the current year is calculated running the carrier more than six were sufficiently numerous for in Asia were performing well at $2.87 billion, an increase of years ago. the carrier to lease extra aircraft despite intense competition from $504.4 million over the previous In the reported 12 months, as well as train crews to fulfill full service and low-cost rivals. 12 months, Joyce said. the airline had to deal with a customer bookings during its They continued to give the group Higher fuel costs would week-long rupture in the fuel peak travel season. Several severe “a capital light foothold” in key be offset by savings from the line that supplied its airliners at weather incidents also forced growth markets”, he said. Group’s transformation program its Auckland hub. Fuel had to be the carrier to cancel flights, an “The expansion of the Qantas of $295.3 million. “We are facing shipped from off shore and all unavoidable situation that not hub in Singapore has been helped another increase in our fuel bill staff endured huge customer every customer understood. by traffic flows and onward for fiscal year 2018-2019. We are pressure to maintain flight Ahead for the carrier are new connections with these airlines.” confident we will substantially services. The airline is suing Z routes from Auckland to Strength in forward bookings recover this expenditure from Energy and BP to recover losses and Chicago, the addition of new and its continuing transformation capacity, revenue and cost of more than US$3 million from A320 family aircraft and three program gave the Group efficiency measures as well as the fuel delivery breakdown. B787s to its fleet and management confidence it could substantially our hedging program,” he said. Later in the year, corrosion of rising fuel prices. cover higher fuel costs in the By chief correspondent, Tom on Trent 1000 engine blades At Qantas, group CEO, Alan current fiscal year. The fuel bill Ballantyne. ■

Industry veteran Hill to return to Srilankan Airlines?

As Srilankan Airlines rumbles consultancies before he took from a London-Colombo flight later, sold its equity on in its shambolic way following on TAAG, which also had the so family members of the in the carrier to the Srilankan a forced change of senior benefit of Emirates investment then prime minister could be government at a US$20 million management earlier this year, until the Gulf carrier sold out in accommodated. Two years loss. ■ it is rumoured that industry 2014. veteran, Peter Hill, who most Emirates had a 10-year recently has spent several years management contract with running TAAG in Angola, is Srilankan but decided to walk returning to the carrier. away from renewal of the Hill was in charge of the management agreement in 2008 SriLankan when Emirates after the government wanted Airline owned 44% of it. Hill paying Srilankan then moved on to several passengers to be bumped

SEPTEMBER 2018 / ORIENT AVIATION / 7 NEWS BACKGROUNDER

involved at its second quarter company results announcement. Manufacturers chip The Derby-headquartered group has set aside US$1.9 billion to 2022 for the cost of repairs away at aircraft to its Trent 1000 portfolio. More recently, it revealed it was investigating serious issues with compressors in two batches of delivery backlog the engine type. “We continue to be Boeing and Airbus have established aggressive goals for impacted by the challenge of managing significant Trent aircraft deliveries while the major engine manufacturers 1000 in-service issues and struggle to meet targets for both new and in-service aircraft. have recognized an exceptional charge of $703.2 million,” said chief executive Warren East. Fixing the engine faults is Chief correspondent, Tom Ballantyne, reports estimated to cost Rolls-Royce in excess of $761.6 million by or a change, Airbus year end, an additional $571.2 and Boeing are sharing million in 2019 and $444.3 some common ground. million in 2020. In May, the At their respective company confirmed it would manufacturing centres retrench 10% of its workforce, Fin Europe and the U.S. dozens or 4,600 jobs, to save $508 of their ordered jets are parked million annually. A company- and unable to be delivered to wide restructuring is expected customers because engines and to cost $634.6 million to the end other aircraft parts are missing of 2020, a figure that will be production deadlines. offset by $508 million in annual At press time, Airbus savings. had close to 80 of its popular While delivery delays at A320neo family aircraft waiting from delays and out-of-sequence the parts arrive and deliveries Airbus remain serious, they for engines from Pratt & Whitney arrivals of airframes from its are made, Boeing will have are easing. In July, Toulouse because the manufacturer had subsidiary, Spirit AeroSystems large cash inflows from airline announced its second quarter missed delivery deadlines. Holdings. Spirit AeroSystems, customers and working capital.” profit had doubled after At Boeing in Seattle, at in turn, is enduring delays Boeing chief financial officer, deliveries of its A320 picked up. least 40 unfinished B737s and from its own supply chain. At Greg Smith, has confirmed the Airbus CEO, Tom Enders, said B787s were recently idle while Rolls-Royce, in-service issues company expected to deliver the manufacturer had reduced the manufacturer’s engineers with the manufacturer’s Trent fewer B737s during the third aircraft waiting on the assembly dealt with the delivery of parts 1000 engines on B787 aircraft quarter of this year before line for engines from CFM and that had arrived out of sequence continue to cause angst at accelerating shipments by year Pratt & Whitney. from suppliers. the company and with B787 end. Speaking at a Jeffries In the first half of this The numbers tell the tale. In customers. conference, he said work is being year, Airbus delivered 110 July, Boeing delivered 29 B737s According to a report last done to streamline production A320neo. “Our operational compared with 56 in June. In month by Bank of America and tackle supplier bottlenecks. focus in commercial aircraft the same month, it sent eight Merrill Lynch analyst, Ron “We have a recovery plan in remains squarely on securing the B787s to customers, down from Epstein, $1.8 billion of B737 place for them and us, and it’s production ramp-up,” Enders 17 a month earlier, according to inventory is sitting on the tarmac about executing that plan,” he said. “Neo deliveries surpassed order-and-delivery data posted at Boeing’s Renton complex. said. those for the original A320 on the company’s website. “The problem may worsen for The question of model in the second quarter Supplier shortages at Boeing Boeing before it gets better,” he compensation to airlines for late and the company stands by a and Airbus include LEAP engines wrote. deliveries and the grounding goal of 800 handovers across from CFM International, a joint “That said, Boeing is building of planes in service will be its full aircraft lineup for 2018 venture of General Electric and inventory until it receives engines complicated. Last month Rolls- although the target remained Safran. Boeing also is suffering and other components. Once Royce gave a hint of the costs challenging.” ■

8 / ORIENT AVIATION / SEPTEMBER 2018 VIE_Aviation_Stephansdom_Business_OrientAviationUK_202x273.indd 1 23.08.18 15:51 MAIN STORY ASIA’S LOW-COST CARRIERS BET ON INTERNATIONAL EXPANSION New generation aircraft will propel Asia-Pacific low-cost carriers onto long-haul routes that will carve out a new passenger sector at the region’s airlines.

Chief correspondent, Tom Ballantyne, reports

hen the region’s largest long haul low “We lobbied hard for the A330neo following the success cost carrier, ’s AirAsia X, added of the A320neo. Working closely with Airbus, we are 34 A330neos to its order book at the confident we have an aircraft that will allow us to expand mid-July Farnborough Air Show the our low fares offering beyond the Asia-Pacific to the rest of commitment underscored the the world.” Wdetermination of co-founder, , to return the With its expected deliveries, AirAsia X will have the low-cost airline group to Europe after a six-year hiatus. capacity to go global as the order was in addition to the 66 Speaking at the Farnborough signing, AirAsia Group A330neo it already has in the Airbus order book. The co-founder and AirAsia X Group chief executive, announcement also confirmed AirAsia X as the largest LCC , made clear the group’s ambitions. wide body airline in the Asia-Pacific and the biggest “Long haul low-cost is something we strongly believe in. customer of the type with 100 orders. All the A330neo This order shows our confidence in the AirAsia X model,” he ordered by AirAsia X are for the larger A330-900. The said. Malaysian carrier will take delivery of its first -900 in the

10 / ORIENT AVIATION / SEPTEMBER 2018 MAIN STORY

connect Vietnam to key markets within Asia, Europe and North America. The capabilities of these new state-of-the-art Dreamliners will help us achieve our goals.” China also is in the game with Hainan Airlines subsidiary, Capital Airlines, now flying to London and Vancouver. It has six A330-200s with one more to be delivered, four A330-300s with another two to arrive at the carrier and an order for two A350-900s. All the aircraft are earmarked for long haul expansion. Asian airlines are not the only LHLCCs to fly between Europe and Asia. Apart from fourth quarter of next year. WOW, Norwegian Air serves Bangkok and The aircraft can fly non-stop from Lufthansa-owned Eurowings flies between Thailand’s Kuala Lumpur to Europe, including London, and will allow capital and Cologne. Both carriers are unlikely to be the last AirAsia X to offer very competitive fares between Europe to expand their reach from Europe to Asia. and Asia. By year end, British Airways-led IAG’s LHLCC, There are 12 LHLCCs in the region that operate 92 wide LEVEL, will be operating to Boston, Montreal, New York body aircraft, including a fleet of 31 aircraft at three airlines Newark, Guadeloupe, Martinique, Buenos Aires, San in the AirAsia X Group. Francisco Oakland and Punta Cana, along with a summer Indications are that long-haul, low-cost flying, despite service to Los Angeles. Analysts believed it would not be questions about its viability, will expand. In a July report, long before the airline turned its attention to the consultancy CAPA said: “Wide body LCCs have launched Asia-Pacific, the world’s fastest growing airline market. nine Asia-Europe routes in the last two years. There are five In the region, Singapore Airlines-owned LHLCC, LHLCCs competing in the market compared with two in Scoot, flies B787s to Athens and Berlin. Last month Japan mid-2015.” Airlines formally announced a corporate LHLCC entity Three LHLCCs, Europe’s WOW, AirAsia X and initially to be resourced with two B787s. It is planned to be ’s Group will be flying between Asia and launched in 2020 and has European and North American Europe by 2020. WOW will become the sixth LHLCC destinations on its radar. serving Asia-Europe from December 2018 with the The region’s pioneer LHLCC, Qantas-owned Jetstar, introduction of Reykjavik to . Thai AirAsia is planning has held back from Europe, but it flies to Hawaii as do rival to fly to Eastern Europe in 2019 and is aiming LCCs Cebu Pacific, Scoot, AirAsia and -owned for destinations to western Europe after 2020. Jin Air. Ambitious VietJet has made no secret of its LHLCCs hold two per cent of Asia-Europe capacity long-haul ambitions and is evaluating A330neos, and are not forecast to secure more than five per cent A350s and B787s to extend its network to of the market in the foreseeable future. Intense international cities. In June, a new competition from full service airlines, including Vietnamese LCC, Bamboo Airlines, agreed the Gulf carriers, and rising fuel costs make the to buy 20 B787-9s at list prices of $5.6 Asia-Europe market a challenging proposition billion to service its global ambitions. for LHLCC entrants, analysts said. LCC Bamboo is owned by construction An alternative view is that new aircraft company FLC Group. Initially, it will fly types - the B787, A330neo and the A350 – are within Vietnam before expanding to making long haul low-cost flying more viable China, South Korea and Japan and onto because of lower operating and maintenance Europe and North America. costs. The sector could grow beyond a five per “We are excited about introducing these cent market share. new B787s to our fleet as we prepare to AirAsia X will be the launch long-haul operations to first airline in Asia international markets,” said to operate the FLC Group chairman, A330neo, with Trinh Van Quyet.. “Our deliveries long-term vision is to scheduled to

SEPTEMBER 2018 / ORIENT AVIATION / 11 MAIN STORY

start in the final three months of 2019. The A330neo will business is growing rapidly and will account for more than operate out of AirAsia X bases in Malaysia, Thailand and 1% of the global market within the next year or two,” CAPA Indonesia. said. In a separate report last June, CAPA said 15 LHLCCs “Malaysia has the largest amount of long haul low-cost have been launched since 2012, including subsidiaries of Air capacity at approximately 7%, followed by and Canada, Hainan Airlines, Korean Air, Lufthansa, Qantas, Singapore at 4% each.” Singapore Airlines and IAG. LHLCC expansion in Asia is expected to be held back The LHLCC model has been around for a decade, but it by familiar problems: airport and ATC congestion and slot is only recently that the size of the sector has started to be shortages. On the other hand, the region’s rapidly expanding significant, CAPA said. middle class and their penchant for budget travel is expected “It surpassed 500,000 seats a week in June 2017. While to drive growth of LHLCC business whatever the logistical this represented only 0.5% of the global market, LHLCC barriers. ■

Asia Pacific wide body LCC fleet

22 AirAsia X 18 Scoot 11 Jetstar 8 Beijing Capital Airlines 8 Cebu Pacific 7 Thai AirAsia X 5 NokScoot 4 Lion Air 4 Jin Air 3 Thai Lion Air 2 Indonesia AirAsia X 1 Lucky Air

Source: CAPA Fleet Database August 2018 NEWS California cool for SIA’s record breaking Singapore-New York route

ingapore Airlines (SIA) has A350-900ULR aircraft commercially. The partnership focuses on: turned to leading global “SIA is firmly committed to Wellness Cuisines developed by wellness group, Canyon continually elevating our customers’ Canyon Ranch chefs and nutritionists Ranch, to re-invent the cabin experience to be the number one in focused on nutrition and hydration experience on the carrier’s the industry. Our new partnership and taking into account longer flight Snew ultra long haul Singapore-New with Canyon Ranch builds on that duration with less body movement. The York service. commitment, as well as our strong menus are offered in addition to SIA’s SIA and the wellness global group legacy of service, tapping into their own meal selection. will introduce new standards of cuisine, deep expertise and science-based Rest and Relaxation designed for rest and relaxation for passengers on recommendations and strategies to passengers in all classes to improve the the 18 hour 45 minute flight between deliver an even more comfortable duration and quality of rest. Specific Singapore and New York. The carrier journey for our customers,” said SIA light settings provide better cabin has ordered seven of the type and will acting senior vice president customer ambience for rest and relaxation. be the first airline in the world to fly the experience, Yeoh Phee Teik. Guided Stretching Exercises led by Canyon Ranch exercise physiologists and accessible from the airline’s IFE seatback system. SIA operates 21 A350-900s and has ordered 46 more including the seven ULR variants. ■

12 / ORIENT AVIATION / SEPTEMBER 2018 COMMUNICATIONS

The “connected aircraft” will transform airline operations

Equipment to track any aircraft flying anywhere across the globe is market ready, reports chief correspondent, Tom Ballantyne, as the International Civil Aviation Organisation moves closer to mandatory 15 minute monitoring of the journeys of every commercial airliner in the world.

he disappearance of flight MH370 above the Indian Ocean on March 8, 2014 was Ta tragic wake-up call for the aviation industry, Inmarsat senior vice president, Strategy and Business Development, Frederik van Essen, told Orient Aviation during the recent International Air Transport Association’s 74th annual general meeting in Sydney. As a result, the communications company, as well as its rivals, has developed fully digital systems that can constantly track all airplanes in flight across the globe. been mandated by ICAO, is GADSS, which will require ground. You no longer need to The technology meets the China’s Shenzhen Airlines and all aircraft to position report find the aircraft. You already requirements of the International Hawaiian Airlines. automatically at least every 15 have the data because it has Civil Aviation Organization’s The Civil Aviation minutes from November this been streamed live,” van Essen (ICAO) proposed Global Administration of China (CAAC) year. By 2021, all airlines must told Orient Aviation. Aeronautical Distress Safety has ruled its airlines must have the capacity to report their He believed it could take System (GADSS). contact ground operations every aircraft every one minute if one up to two years before the new Inmarsat introduced its four minutes. “That is driving of them is in distress. rules are mandated by ICAO as a SwiftBroadband-Safety (SB-S) take-up from Chinese airlines,” The Inmarsat system global standard. “I have learned monitoring system to customers said van Essen. “The Chinese can, in addition to GADSS decisions at this level always take in April at the International Air market is a difficult market to requirements, identify an longer than expected. Already, Transport Association’s (IATA) operate in. There are a lot of abnormal event triggered by the digitally advanced airlines are Safety and Ops conference in special requirements.” After a pilot or if the aircraft is being doing it ahead of the pack. You Montreal. 12-month trial, manoeuvred. An effected plane will get the big mass when the “In addition to the current inaugurated the Inmarsat will automatically start streaming mandate comes into force.” services it provides a secure system for tracking the Doha- the most critical flight data to Can we say now we internet link to the cockpit. headquartered airline’s flights the ground. truly have global coverage? Included in the service is free worldwide. “We call it the ‘Black Box “Absolutely, although I always position tracking,” said van Since the disappearance of in the Cloud’ because it is. The have to put in a little star: except Essen. Among carriers operating MH370, ICAO has been working most important black box data for the extreme poles because the system, although it has not towards implementation of is streamed automatically to the we are using geostationary

SEPTEMBER 2018 / ORIENT AVIATION / 13 COMMUNICATIONS

satellites. They can look at a whole side of the Earth but they ICAO investigators won’t eliminate possibility of a can’t serve just the top of the poles basically,” he said. third party fatally diverting MH370 “You could launch a satellite Following the publication and Ho Chi Minh City did not traffic controllers in Malaysia over the poles but it is a business of the official report into the comply with certain standard and Vietnam on the night of case issue as there are so few unsolved disappearance of a operating procedures that the jet’s disappearance delayed flights over the poles. Airlines Malaysia Airlines B777 carrying included a failure to initiate search and rescue operations. are asking for it but they do not 239 passengers from Kuala “emergency phases”. Investigators said the mistake want to pay too much for it. Lumpur to Beijing on March “Therefore, it is with regret happened as MH370 was about Launching satellites specifically 8, 2014, the head of Malaysia’s and after much thought and to enter Vietnamese airspace. for that coverage is quite Civil Aviation Authority (CAA) contemplation that I have A Ministry of Transport resigned. His resignation took decided to resign,” Rahman said statement said it would review expensive. Having said that, our effect on August 14. in a July 30 statement. “I tried the ICAO recommendations and cockpit solutions operate to 85 CAA chairman, Azharuddin my level best to assist in the “take appropriate” measures to degrees north and that is quite Abdul Rahman, said the MH370 search for MH370 in the last four prevent similar accidents. “At high.” report had not indicated the loss years and I am saddened to have the same time, we will conduct Van Essen said he cannot of the jet and all onboard was to leave in these circumstances.” a thorough investigation guarantee another plane caused by Malaysian aviation The authors of the report and take action against any will not go missing. “From a officials, but “there were appar- could not explain why the B777 misconduct committed based technical perspective, being in ent findings with regard to the vanished but said the course on the findings under the contact with aircraft all the time operations of the Kuala Lumpur of MH370 had been changed existing provisions of the law,” and knowing their positions Air Traffic Control Centre”. manually. They did not rule out the ministry said. “The Malaysian International the possibility of an individual Malaysia’s Department is absolutely not a technical Civil Aviation Organisation other than the pilots diverting of Civil Aviation has been problem. The first airlines to (ICAO) Annex 13 report into the the jet. overhauled and absorbed into invest in this technology are now loss of MH370 said air traffic Investigators said the a re-structured Civil Aviation flying with equipment that is controllers in Kuala Lumpur communication lapses by air Authority of Malaysia. doing that,” he said. ■

esearch recently airline operating costs of US$764 of adverse weather with digital reporting and introducing published by the billion by 1% today and by US$15 technology that could save digital datalink communications Britain’s London billion in 2035. Optimisng flight airlines up to $1.3 billion a year. between pilots and air traffic School of Economics routes in real time based on more Crew re-scheduling is responsible controllers could revolutionise and Political Science accurate weather information for 3% of flight delays, a figure air traffic management and save R(LSE) has forecast the connected for pilots could save 1% in fuel that could be reduced by 66% airlines an estimated $3 billion aircraft would reduce airline per flight, the authors of the with enhanced connectivity, the a year, report lead author, LSE operating costs by US$15 study, produced in association LSE study said. media and communications, Dr. billion a year by 2035 and has with Inmarsat, said. Based on IP-enabled secure real time Alexander Grous, wrote. the potential to eliminate 21.3 current oil prices, annual savings data exchange between air Inmarsat Aviation senior vice million tonnes of CO² emissions for airlines could be up to 3.39 traffic controllers and aircraft president market and business from flights in the same period. billion litres of fuel, 8.3 million using satellite-based navigation, development, Frederik van Contemporaneous data from tonnes of CO² and US$1.3 billion. automated aircraft position Essen said: “With finite airspace the International Air Transport Long-term, the study available to accommodate Association (IATA) combined projected enhanced increasing passenger numbers, with interviews with airlines, communication to and from the airlines need to act now in regulators and suppliers was cockpit could produce further considering the technology and published in Sky High Economics: annual reductions in fuel of 8.5 infrastructure they need to future Evaluating the Economic Benefits billion litres, or 2.5% of total proof their operations.” of Connected Airline Operations global requirements, which The report is the second which said the major benefits translated into 21.3 million few installment in the Sky High of the connected aircraft are tonnes in of CO² emissions. Economics series. The opening fuel savings, reduced flight Flight delays worldwide cost chapter explored the revenue delays, air traffic enhancements, the industry an estimated $123 and economics of inflight greater MRO efficiency and billion a year, the report said, passenger connectivity. The final improvements in safety. with weather responsible for chapter will examine the impact The LSE study said the new 70% of them. Connected aircraft of passenger connectivity on efficiencies could cut annual can avoid more many episodes loyalty and behaviour. ■

14 / ORIENT AVIATION / SEPTEMBER 2018 COVER STORY DETERMINED TO BE VIABLE Royal Brunei’s Karam Chand is drawing closer to being the CEO of the world’s youngest fleet, an operating position that will equip the carrier for its long planned expansion into Europe.

By chief correspondent, Tom Ballantyne

oyal Brunei Airlines (RB) CEO, Karam Chand, connected by a direct air link,” said Chand. “With the is having a busy year. For a start, thanks to the capabilities of the aircraft, we are profiting from the runway at lengthening of Brunei’s international airport’s Brunei lengthening. We depart at maximum take-off weight runway, the carrier will launch a non-stop B787 so we can do London direct. The aircraft is capable and the service to London from next month. Previously, runway supports it. No direct connectivity between London Rthe route was served via Dubai. The new service will reduce and Brunei was a missed opportunity. This is a big one for us.” Brunei-UK flying time by three hours and a half hours. Royal Brunei also has ordered seven A320neo, with “For the first time, Brunei and England will be seamlessly options on another three of the type. The first two neos

Come October our average fleet age will be two years. I don’t know anybody in the world with a fleet that young

Karam Chand Royal Brunei Airline CEO

SEPTEMBER 2018 / ORIENT AVIATION / 15 COVER STORY

arrived in Brunei in May and June. “It does two things for airline so we need to take cost out of our business from time us,” Chand said. “One, we can increase frequencies in several to time. markets. We want to be daily or double daily where possible. “We also provide 80% of the seats to and from Brunei So, Singapore double daily, Bangkok double daily and or very soon will be. It puts a huge responsibility on us as the and double daily. national airline so operational reliability is critical’, he said. “The second opportunity, with expansion to nine narrow- “The new fleet will allow us to do that. We are very lucky. bodies is a growth opportunity. We have added Seoul and will Our on-time performance is 90% and we have maintained add more frequency there. We are flying to Nanjing twice a that quite well. Our arrivals are 92% actually. As the national week. We are flying to Hangzhou in China, so secondary cities airline with that kind of capacity we have to fly to places such [are a goal].” as Singapore, Kuala Lumpur and Hong Kong where they can The airline also hopes to return to Beijing. It is awaiting connect to other flights. Operational reliability is a very key clearance for the route from China’s regulators. “One of the part of that.” significant issues of course is slots,” he said. “If we get the slots Chand told Orient Aviation reducing unit costs over the we will operate Beijing by the end of this year. If we don’t get next three years is a priority. “We are saving up to 22% in the slots, we’ll target the new airport, Beijing’s second airport fuel compared with the B777-200. The A320neo brings us a at Daxing, which will bring all the latest technologies and 20% saving compared with the A320-300. We are buying the connections to the city as well.” aircraft, not leasing them, so we have lower costs there. Having At press time, Chand confirmed RBA will launch direct the latest technology on both fleets is a huge outcome for us.” flights to Taipei on December 3. is the next goal. Service is not being ignored by Chand. “We pitched it to Chand presented the RB board with a forward network our team by explaining we are a boutique airline. We are never expansion strategy in July. “It’s kind of obvious in a way. We going to have a massive differentiated product vis-à-vis our don’t have a very strong footprint in North Asia. We go to competitors. But we are not a low-cost carrier, so let’s be very Hong Kong and and we want to strengthen that. service driven. It’s our differentiating point. And then there is India. It is a very large market and we don’t “We are undertaking a audit. We want to be a fly there. That’s an opportunity as well. 4-star airline by the end of this year. We want to be a value “The attraction of the A320neo is its range. The seat carrier with very good service. We will have seat back audio capacity is not that significant. With 150 seats you can find video on demand in every seat. From this month, we put 1,000 new markets without taking too much risk. That’s the exciting items of entertainment on our planes. We are in a market part. The other exciting part is we can execute a complete fleet where people are comparing you to other people and you have regeneration. We will have the latest technology aircraft: the to do that.” Dreamliners and the neos.” “We are a network carrier even though we are one of the State-owned RB does not disclose its financial results, but smaller network carriers. We are always going to have sixth Chand is more than happy with the carrier’s progress. “In 2010, freedom traffic on our planes,” he said. we had a five-year plan which is done and dusted. We have “In the last two to three years, we have changed the mix made significant improvements against all the performance to a 50/50 split as opposed to 60%. It will eventually come indicators,” he said. “In the current five-year plan we are very, down to 40% connecting traffic and 60% point to point. We very focused on increasing productivity and efficiencies.” are putting a big emphasis on tourism. In the past it was not a The fleet planning was “a once in a decade opportunity to major economic issue, but the government is keen to reap the reset our cost base. We are doing that with maintenance costs, economic benefits of tourism. As the national airline we want fuel burn and ownership costs. We are a 43-year-old legacy to play our role in this initiative very actively.” ■

16 / ORIENT AVIATION / SEPTEMBER 2018 NEWS BACKGROUNDER

Airbus embarks on big push for A220 business Airbus welcomed its newest single aisle offering, the A220, in July after taking majority control of Bombardier’s C Series program. Can the global aircraft manufacturer revitalize sales of the re-christened regional aircraft? And can it convince more Asia-Pacific airlines to order it? Chief correspondent, Tom Ballantyne, reports from Toulouse.

irbus has identified six A220-300s. time. We also will have to tackle costs to operate and perfect to North America Selling the regional jet smaller regional airlines to see open small routes. It is a great as the major in Asia will be a challenge, if we can help them to develop growth path for regional carriers market for its new conceded head of sales for the with the A220 with a module that want to go beyond 100 A220 aircraft, a A220, David Dufrenois, at a press that is a bit less risky than the seats as traffic grows.” Aregion where the manufacturer conference in Toulouse shortly A320 and then go into the Airbus took charge of the expected to generate 40% of all before the re-branded A220, bigger league.” C Series program on July 1 sales of the former Bombardier C resplendent in its Airbus livery, Or, as head of product with the formation of CSALP Series regional jet. The question made its debut in July. marketing for the A220, Antonio (C Series Aircraft Limited is: can the A220 achieve a major “We will try to convince Da Costa, put it: “The -100 is our Partnership). Airbus owns breakthrough in the world’s some airlines with the A320 to lowest risk aircraft. It is an ideal 50.01%. Bombardier’s holding fastest growing airline region, consider the A220 at the same entry level aircraft offering low is approximately 34% and the the Asia-Pacific, where selling government investment arm, regional jets has proved to be an Investissement Quebec, is the uphill battle? third partner with 16%. The A220 type comes in The Airbus investment has two variants: A220-100 that fits breathed new life into a program into the 100-135 seat category that was failing. Bombardier and the A220-300 with a seat spent more than $6 billion - $2 range of 130 to 160. Historically, billion over budget - to develop Asia-Pacific airlines, whether the C Series after its launch full-service, low-cost or start-up, in 2008. By late 2015 it had almost universally have built received a $1 billion bailout from their fleets with larger A320s the Quebec government to keep and B737s. Bombardier’s sole C the program alive. At the time Series customer in the region is Toulouse took majority control, Korean Air. The airline operates 402 C Series planes had been

SEPTEMBER 2018 / ORIENT AVIATION / 17 NEWS BACKGROUNDER

ordered and 38 delivered to underestimating the market customers from early 2017. If the in the past. “We did give our A220 is to succeed it will need to colleagues at Bombardier a very win significantly more orders. hard time when it came to the The existing production line C Series versus the A319/320 in Mirabel Quebec is designed to to the extent we grabbed a lot deliver 120 jets annually, a target of this market. But that was not that is far from being achieved. actually to underestimate the A second production line is market itself nor the program,” being built in Mobile, Alabama he said. alongside the existing Airbus “John [Leahy, retired Airbus A320 Final Assembly Line. It is Commercial Aircraft sales chief, scheduled to open in 2020 and sales chief] said it was a cute will have a production capacity little plane and I think he meant of 50 to 60 aircraft a year. it. It is still a cute little plane. The The joint venture has started point is that at one stage we had well. A day after the A220 reveal to make this decision. We have in Toulouse, U.S. airline, Jet made this decision and we are Blue, ordered 60 A220-300s. going to make this C Series a At the Farnborough Air Show great success. a week later, 60 of the type “All the 100-seaters that were ordered by a planned U.S. came on the market were start-up that has Jet Blue as an regional aircraft that were investor. stretched, but Bombardier took Airbus sales leaders are the bet and the commitment to supremely confident in their design a new aircraft specifically ability to deliver more sales of The Asia-Pacific was probably for the 100-seat market. It was the airplane. Head of customer “not the first market for the C Series, extremely risky at the beginning Service for CSALP, Rob Dewar because they were hitting – known as the father of the he said, but the region could still account the lowest part of the A320 C Series – said Airbus brings a for 15% to 20% of sales. It’s a great market segment.” world leading capability to the for the 100-150 seater. You are right. A challenge for Airbus is program. marketing the A220 as it is “It has huge production The A320 has been very successful in the essentially the same size as the rates and its ability and network Asia-Pacific and still dominates the market. A319, an aircraft with a common of suppliers will be very helpful. We will probably have to find a start-up, type rating with the A320 series. I can see in the discussions Dufrenois said the A220 will be we have had in the last seven some airline that wants to “fully integrated” into the A320 months that there is a lot of start afresh with a new model family. capability and help that came He conceded that “at the [to us]. David Dufrenois beginning” there would not be “Basically, we are going to Airbus A220 head of sales full commonality between the build sales volume and ramp up two cockpits and no common the program. Volume will help us Schultz. We have mobilized the costing of the aircraft.” type rating. That is something and our suppliers to reduce our our sales teams worldwide Before the acquisition, that could be worked out in the downward earnings curve and and the feedback we have Airbus had been dismissive about future, he said. lower production costs. We have from the market is extremely the C Series and had downplayed “First of all, there are a lot of had some preliminary discussions positive. I don’t doubt we will be the potential of the 100-150 similarities in the cockpits, side with our suppliers. They are very successful.” seat market. Forecast demand in sticks and similar technologies. supportive. We are confident Asked if Airbus could the A220-A319 category in the The first focus is ramping up that together we are going produce the new jet at a price next two decades is for 7,200 the program, building sales to develop a very successful customers are prepared to pay, airplanes. with 6,100 of the jets and cutting our costs. Then we program.” he said: “yes, otherwise we predicted to be in the A220 size. can look at opportunities in Dufrenois added: “I need to would not continue an endeavor Airbus expected to win at least development with the Airbus sell the aircraft. That is my job with this program. Airbus did a 50% of these orders, it said. family. It will not be done in one under the leadership of Airbus very thorough assessment of the Dufrenois did not think shot. Our first priority is on the chief commercial officer, Eric market, including the pricing and Airbus could be accused of ramp up,” he said. ■

18 / ORIENT AVIATION / SEPTEMBER 2018 NEWS BACKGROUNDER

Entering the era of fewer pilots in the long haul cockpit

By chief correspondent, Tom Ballantyne

orecast demand for pilots “That’s not an absurd driverless car, may be a reality by than two pilots in the cockpit on in the Asia-Pacific to date. Reducing crew on 2040, Thales said. long-haul flights and at least two 2037 declined by five per long-range looks to be the most Cockpit crew cutbacks would on shorter journeys. The costs cent, to 240,000 cockpit accessible step,” Airbus head of most likely begin with cargo outweigh benefits, argue sceptics crew, said Boeing in its engineering, Jean-Brice Dumont, flights but for the aerospace of the one pilot aircraft. Flatest annual Boeing Pilot and said at a media briefing at the UK architects of the world, it is If it is assume new Technician Outlook released last air show. progress. In the 1980s, cockpit technology will make reduced month. At Boeing, it is understood crew numbers were reduced cockpit crew manning inevitable, The report said the region its engineers are examining the from three to two as new the biggest hurdle to this would account for 33% of option of reduced manning for generation jets eliminated operating outlier would be demand for pilots as Asia-Pacific regulatory. Convincing regulators carriers expanded their fleets to of the safety of such a radical 40% of airliners worldwide by departure from past operating 2037. Global demand by 2037 axioms as well as achieving would be 635,000 commercial certification for the change airline pilots. China alone would would take longer than the require 128,500 new pilots in the development of the one pilot next two decades. cockpit. Airbus and Boeing differ in Dumont said the single pilot their forecasts of the make-up operation is not an absolute of the future global fleet. Boeing must. “It may be necessary said it would be 42,730 jets. because of the disparity between Airbus predicted a 37,400 global the number of aircraft entering aircraft fleet. Variations aside, the fleets and number of pilots numbers are huge and training needed to fly them,” he said. academies are expanding, The pilot squeeze has shown especially in the Asia-Pacific, to up most recently in India where accommodate airline growth. the government has been forced At the Farnborough Air Show to extend the deadline for in July experts said expanding phasing out foreign pilots at the crew training facilities worldwide nation’s carriers from December may only be part of the answer to the cockpit of the proposed the need for flight engineers. this year to December 31, 2020 crewing aircraft in future decades. midsized aircraft (MDA), a plane Financial services group UBS said because of a shortage of up to Artificial intelligence (AI) that could be in service by 2025. that a one pilot cockpit could 250 pilots. It is estimated that could allow big jets to be flown Boeing has made no decision save airlines $15 billion a year. Indian airlines, which have more by fewer pilots, particularly on about an MDA program. From a passenger perspective, than 1,100 airliners on order, will long haul flights, said Airbus Options included embedding this is a most unwelcome need 10,00 new pilots to fly the and Thales. The European of AI in cockpits, airborne outcome. A UBS poll revealed expanded national fleet. manufacturers said AI was “a connectivity that would allow for only 13 percent of respondents Separately, the Qantas Group fertile avenue of exploration”. decision-making on the ground would board a jet flown with a announced last month that it They said crews of three or four and replacement of current single pilot. would build two rather than one pilots on long routes could be cockpit instruments with digital There are other issues to pilot training schools in regional reduced to two by 2023 because interfaces. Longer term, a fully overcome when re-engineering Australia with location of the technology would reduce cockpit autonomous commercial jet, cockpit manning. There are first facility to be announced in workloads. developed along the lines of the safety reasons for having more weeks. ■

SEPTEMBER 2018 / ORIENT AVIATION / 19 INDUSTRY ADDENDUM

CFM International and and cost-effective IFE solution,” Vistara chief strategy and commercial officer, Sanjiv IATA agree to MRO code Kapoor, said. of conduct “We are eagerly awaiting the final approvals required so we can deliver wireless Joint venture engine manufacturer, CFM IFE aboard Vistara. Bluebox is a powerful International, and the International Air and convenient solution that suits Vistara’s Transport Association (IATA) have reached current needs and is flexible enough to an agreement “to maintain and foster robust support the airline’s growth as well as and open MRO competition as well as the keeping the airline’s passengers engaged competitive nature of its MRO model”. on its expanding network,” said Bluebox The agreement stipulates CFM will business development director, David publish its Conduct Policies and associated Brown. Implementing Measures that support policies Bluebox’s portable wireless streaming and guidelines for licensing, warranties, platform can store up to 1.6 terabytes of film, enabling travel agents to book NDC content servicing, technical support, repairs, TV, audio, games and other digital content. alongside GDS content are progressing well communications and contracting. The lunch box sized unit has more than 40 with products to be rolled out from the latter The OEM and IATA hope CFM’s airline customers. ■ part of 2018. transparency about its MRO operating model “As well as embracing the technology will be adopted by other stakeholders in the that is available to us today, we know aerospace sector. “This agreement reflects Travelport embraces IATA’s that even greater change is on the way. CFM’s continuous commitment to customer New Distribution Capability So whether the discussion is about satisfaction,” the engine maker’s president NDC, automation demands or greater and CEO, Gael Meheust, said. ■ Global distribution platform, Travelport, personalization or even artificial intelligence which was the first GDS to receive IATA Travelport is planning for tomorrow and New Distribution Capability (NDC) Level 3 building solutions to drive your business AIRCRAFT INTERIORS certification, is conducting pilot programs forward.” ■ with several carriers to determine how NDC Vistara orders Bluebox works for them. Wow portable streaming Travelport senior vice president and Orix Corporation buys managing director air commerce, Derek into HNA Group controlled platform Sharp, said in a recent company study that Travelport viewed NDC as an extension of lessor Avolon Joint venture full service carrier, India’s Travelport’s business of decades, “ensuring Vistara, has agreed that Scotland’s Bluebox relevant bookable content is served to Aviation to services conglomerate , the Wow will provide portable wireless IFE anyone wanting to book travel by whichever HNA Group, has agreed to sell 30% of its aboard its 21 A320s and additions of the type means they have chosen to connect” with us. leasing subsidiary, Avolon, to Japan’s Orix to the fleet from this month. Vistara World’s Travelport has launched a multi-year Corporation for US$2.2 billion. Avolon is 70 hours of video and audio content will be agreement with Qantas Airways that controlled by Bohai Capital which in turn is streamed wirelessly to the personal devices includes distribution of the carrier’s content majority-owned by China’s HNA Group. In and laptops of Vistara passengers. and integration in the national airline’s NDC the August announcement of the sale, Orix “With the introduction of wireless platform, the Qantas Distribution Platform. said subject to government approvals, the streaming of IFE content, we will deliver “This is an important development in deal should be finalized by November. a product our customers have said they our roadmap and we are looking forward “By virtue of the acquisition of the shares desired, enhancing overall customer to working with other major airlines,” said of Avolon, Orix aimes to achieve sustainable satisfaction and experience with an efficient Sharp. “Our plans to offer an application long-term growth of its business by way of strengthening its access to the manufacturer order positions that Avolon holds and also further expand its aircraft leasing business investment universe,” said an Orix statement. Bohai acquired Avolon in early 2016 and then merged it with Hong Kong Aviation Capital. In the final quarter of that year it successfully bid for the CIT Group’s aircraft leasing unit for what was reported at the time to be an all-cash transaction of US$10 billion. ■

20 / ORIENT AVIATION / SEPTEMBER 2018 INDUSTRY INSIGHT SPECIAL REPORT DATA ANALYTICS DEFINE MODERN PASSENGER MANAGEMENT Easing passenger irritation at Asia-Pacific airports

By chief correspondent, Tom Ballantyne

t any Asia-Pacific primary drivers of change will be with current processes, smartgates at its arrival terminals hub airport – and data-driven technology solutions. installations and ways of doing two years later. The technology, many of the region’s Primarily, they are the transfer of business. GAPS brings together after some operational smaller ones – long some airport processes off site, experts to share research and difficulties, was expanded to check in queues, wider implementation of learnings and collectively shape departure terminals in 2015. Now, Abacked up lines at security barriers real-time exchange of operational solutions for the future passenger the e-gates are the primary and delayed flights are the norm. data, back office efficiencies and journey,” said IATA’s senior vice method for processing travellers If that is the situation in 2018, innovation in identity president, airport, passenger, through Australia’s major what will air travel be like for the international airports. At peak 4.1 billion passengers forecast to travelling times, a single fly in the region in 2036? SmartGate can handle as many as SITA CEO, Barbara Dalibard, 150 passengers an hour or one said the answer is “smart use of person every 24 seconds. technology to help manage rising A number of the region’s passenger numbers, limited airports are experimenting with infrastructure and increased biometrics to speed up passenger complexity.” Like its rivals, Sabre processing. Last May, Seoul’s and Amadeus, SITA is banking on Incheon International Airport its offerings in biometrics, launched SITA’s self-service bag artificial intelligence, machine drop technology at its new learning, robotics and Blockchain Terminal 2 to cope with the to cope with the air passenger recent Winter Olympics Games bulge that is close to visitor influx and to prepare the overwhelming many airports in airport for the 100 million the region. passengers a year it is forecast it “Biometrics is becoming will need to process by 2030. more commonplace at airports Drop&Fly simplifies the bag drop worldwide. The technology is process, commands less space in delivering secure seamless travel terminals and improves accuracy from check-in to boarding,” said in baggage handling. Dalibard. “We have biometric In June, the self-service solutions operating Berhad, which operates the globally, including in Australia, country’s 39 airports, introduced the U.S., Mexico and the Middle a mobile app that applies Big East.” management (One ID). cargo and security, Nick Careen. Data Analytics (BDA) to the In acknowledgement of the IATA and its OEM partners An estimated US$430 billion passenger experience. Using importance of managing air also aimed to improve aircraft either is being invested in airport MYairports passengers can plan passenger growth, the design and on-board systems to expansion or planned to be so. their journey to the airport ahead International Air Transport provide airlines with more options Accompanying this infrastructure of time and be navigated Association (IATA) has announced for product innovation and pipeline is widening agreement intelligently from airport check its inaugural Global Airport and revenue generation. that bricks and mortar alone points to the boarding gate in the Passenger Symposium (GAPS), “Air travel is expected to won’t solve the problem. fastest possible time. which will be held in the first double by 2036. The industry will After Australia introduced Malaysia Airports is week of October in Athens. not be able to handle the growth ePassports in 2005, Sydney undergoing a digital The association said the or evolving customer expectations Airport began rolling out transformation with BDA

SEPTEMBER 2018 / ORIENT AVIATION / 21 INDUSTRY INSIGHT SPECIAL REPORT DATA ANALYTICS DEFINE MODERN PASSENGER MANAGEMENT

applications and the Internet of learning and artificial intelligence Things (IoT) devices that will to forecast aircraft arrival times as anticipate foot traffic flows, far out as 24 hours giving airports manage facilities for passenger the opportunity to proactively comfort and reduce queuing manage and mitigate disruption,” congestion. she said. MAB managing director, “Autonomous vehicles and Badlisham Ghazali, said: “The the potential use of robotics is MYairports mobile app is meant another field of development, to help passengers plan their with particular interest shown in journeys in the palm of their Kansai Airport’s trial of KATE, hands. The app gives live updates SITA’s autonomous check-in of flight information, time left to robot.” board flights, shopping and Another example of the dining promotions, critical airport Symposium in Berlin that data change the future are not new, future of airports is baggage information and way finding was the key to unlocking so much but they exploit the fundamental management. This year IATA around the airport.” opportunity, but it required a new laws that are converting our Resolution 753, which heralds the At London Heathrow, one of mindset. world from analogical to digital implementation of baggage the world’s busiest airports, “There was an ever-greater and creating the foundations for tracking, came into force. The Vietnam Airlines can move its need and opportunity for the innovation.” tracking system’s data identifies flights from Gatwick to Heathrow industry to employ sophisticated For airport operators, data where baggage processes can be because the airport’s more personalization techniques and mining provides great potential improved. efficient use of digital data allows intelligent merchandizing to for revenue generation. With the “We won’t see a sudden it to add slots to its daily roster. It optimize their operations and relevant data, airports can prompt change in 2018, but it is a real is technology that would benefit reduce costs,” he said. passengers to use their waiting turning point for the industry as many of the region’s congested “Airlines [and airports] that time to shop and dine at venues airlines begin to unlock the value hubs. harness data and analytics for digitally determined to match of tracking data for the 4.65 The Cloud, Blockchain, The operational and customer their preferences. billion bags they carry. Looking Internet of Things and Big Data experience transformation will be Dalibard said airline-owned ahead, combining data collected will better manage the the winners,” he said. “One of SITA was investing in technologies from bag tracking with data tremendous growth of coming the success factors in becoming with its industry partners, science and machine learning years. Amadeus’ global head of data-driven is creating a company including a US$25 million project promises even more significant commercial for travel intelligence, culture that places data at the to tackle poor on-time improvements in baggage Didier Mamma, pointed out at heart of the organization. performance. “SITA’s technology handling operations,” said the recent IATA Aviation Data “The technologies that will harnesses advance machine Dalibard. ■

Hong Kong wins plaudits for efficiency A Global Airport Performance at 25-40 million passengers a efficient airport in Oceania, the Florida with the goal of providing Benchmarking Task Force report year and Gimhae International study said. comprehensive, unbiased com- released at a recent conference Airport at 10-25 million pas- The benchmark project parisons of airport performance in Seoul awarded top scores sengers annually. For the eighth is compiled by the College worldwide. to several Asia-Pacific airports consecutive year, of Business at Embry-Riddle The research team meas- for their superior operations in was determined to be the most University in Daytona Beach, ured 205 airports and 24 airport demanding situations. groups for their productivity, Hong Kong International operating/management effi- Airport was named as the ciency, unit cost competitiveness number one airport for perfor- and comparative airport charges. mance in the over 40 million “Airports have to be efficient passengers per year category. and innovative to compete A.B. Won Pat International for airline business, passenger Airport in Guam was ranked as popularity and cargo operators,” the most efficient in the below said professor of air transport 10 million airline passengers a management in Embry–Riddle’s year category. College of Business and the task Other winners in the region force project’s manager, Dr. were Jeju International Airport Chunyan Yu.

22 / ORIENT AVIATION / SEPTEMBER 2018 No.1 Asia-Pacific commercial aviation magazine

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