Winter 2012 x x x Aviation Primer A guide to navigating Asia’s increasingly busy skies Important disclosures, including any required research certifications, are provided on the last two pages of this report. Aviation Primer Winter 2012 Table of contents Introduction 1 I Getting off the ground 3 II Choosing the right places 15 III Assessing aircraft options 23 IV Money matters: buy or lease? 49 V Devising the right sales strategy 57 VI Plane spotting: future trends in Asia 69 VII Picking the winners 83 VIII How to score an upgrade 91 Appendix 95 Aviation Primer Winter 2012 Contributing Daiwa Analysts Summary The battle over Asia’s skies is intensifying. As GDP and disposable income rise in countries around the region, more people are getting the opportunity to fly. Tapping into the demand are the full-service airlines, low-cost carriers, and niche players. We look behind the ‘glamour’ of the industry to see what makes it tick. How important is it for an airline to be linked to a global distribution system, what Kelvin Lau (852) 2848 4467 strategies are working best in the various markets of Asia, and which aircraft
[email protected] is right for a particular route? These are questions all airlines face, from established flag carriers to fledgling low-cost carriers. In the Aviation Primer, we look at the factors that airlines need to consider when operating their fleets and expanding their networks. It’s a constant balancing act, but we trust that the insights provided will put investors on the right flight path in terms of investing in the industry.