Vol. 24 No. 8 October 2017 orientaviation.com

THAILAND’S SMARTEST

Thai AirAsia CEO Tassapon Biljeveld rolls over opponents in a cutthroat LCC market

Airbus strengthens Asia leads Etihad names new group ties with world in LCC CEO to resurrect its A330 centre connectivity airline business

INDUSTRYSPECIAL INSIGHT REPORT faster MRO Digital era delivers turnarounds ENGINE INTELLIGENCE. HUMAN EXPERTISE.

Powered by advanced analytics, Pratt & Whitney experience, and your fleet expertise. Our shared insights become your most valuable assets.

ALL TOGETHER, SMARTER.

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GB_EngineWise_Aftermarket_OrientAviation.indd 1 9/19/17 9:39 AM Client: Pratt & Whitney One Company Ad Title: EngineWise Publication: Orient Aviation - October 2017 Trim: 202 x 273 mm • Bleed: 212 x 283 mm • Live: 182 x 253 mm CONTENTS Volume 24, Issue 8

COVER STORY

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PUBLISHED BY ’S ORIENT AVIATION MEDIA GROUP Mailing address: GPO Box 11435 Hong Kong SMARTEST Office: 17/F Hang Wai Commercial Building, 231-233 Queen’s Road East, AIRLINE Wanchai, Hong Kong Tel: Editorial (852) 2865 1013 Thai AirAsia CEO, E-mail: [email protected] Website: www.orientaviation.com Tassapon Biljeveld,

Publisher & Editor-in-Chief rolls over opponents in Christine McGee a cutthroat LCC market E-mail: [email protected]

Chief Correspondent Tom Ballantyne Tel: (612) 9638 6895 Fax: (612) 9684 2776 E-mail: [email protected]

Greater China Correspondent Dominic Lalk Tel: (852) 2865 1013 COMMENT MAIN STORY E-mail: [email protected] 5 must be warned of missile threats 16 Airlines build arsenal against cyber assault

North Asia Correspondent Geoffrey Tudor ADDENDUM Tel: (813) 3373 8368 E-mail: [email protected] 6 Former Abu Dhabi airports boss to chart Etihad’s future course India Correspondent R. Thomas 6 Ameco’s new CEO tasked with delivering on Tel: (852) 2865 1013 MRO’s global goals E-mail: [email protected] 7 Asia leads world in budget carrier connectivity Photographers Rob Finlayson, Graham Uden, Ryan Peters

Chief Designer Chan Ping Kwan

Printing Printing Station(2008) INDUSTRY ADDENDUM ADMINISTRATION 33 Korean LCC, Jin Air, signs passenger service General Manager 7 WiFi a win-win for region’s carriers agreement with IBS Shirley Ho E-mail: [email protected] 33 Mobil Jet Oil approved for Pratt & Whitney NEWS BACKGROUNDERS engines ADVERTISING 9 Thai airlines struggle despite an expected safety 33 AFI-KLM MRO consolidates alliance with

Asia-Pacific, Europe & upgrade Indonesian partner Clive Richardson 8 Last chance for after Patee Sarasin 33 New Zealand’s Phitek to offer ATR customers a Tel: (44) 7501 185257 E-mail: [email protected] replaced portable IFE live streaming solution 13 AirAsia appoints first CEO for Hong Kong and 34 Siemens and Singapore agree to drive digital The Americas / Canada Barnes Media Associates Macau aerospace transformation Ray Barnes 20 Airbus strengthens China ties with new A330 34 Budget carrier, Jeju Air, equips aircraft with Tel: (1 434) 770 4108 Fax: (1 434) 927 5101 Tianjin centre SITAONAIR FlightTracker E-mail: [email protected] 34 New dnata boss appointed in Singapore [email protected] INDUSTRY INSIGHT SPECIAL REPORT Follow us on Twitter @orientaviation The digital challenge for Asia-Pacific MROs also - keep up with the news of the week with Orient Aviation’s Week in 28 Digital era demands swifter, smarter MRO the Asia-Pacific 30 GE explores the benefits of Big Data

© All rights reserved 30 MRO undercuts rivals Wilson Press HK Ltd., 30 Ameco looks beyond its and Mainland Hong Kong, 2017 fleet customers for growth

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FLIGHTSAFETY INSTRUCTOR TRUST AD - ORIENT AVIATION - OCTOBER 2017 ISSUE - Trim: 202 mm w x 273 mm d Bleed: 212 mm w x 283 mm d Live: 182 mm w x 253 mm d COMMENT

Warn airlines about missile threats

The war of words between U.S. President Donald Trump approach from the north. Statistically, the chance and North Korean dictator Kim Jong Un presents a very of a missile hitting one of these planes may be low, but serious threat to airlines and their passengers and crew. nevertheless it is a risk too far. North Korea’s rockets have soared high over Japan’s Some effort must be made to convince North Korea Hokkaido island before plunging into the Sea of Japan. that civilian airlines be given warning of the timing of In response to the missile launches, European the tests. The International Air Transport Association carriers Lufthansa, Swiss Air and SAS have altered their (IATA) has some contact with the rogue state’s aviation flight routes to avoid crossing the Sea of Japan when authorities. Hopefully approaches have been made, approaching from Europe. After North Korea’s although in the present political climate it seems unlikely second long-range missile test in July, a U.S. official they will produce meaningful results. revealed that Air France 293, flying from Tokyo to Paris, The issue underscores the importance of convincing had flown across the rocket’s flight path 10 minutes governments, whatever their views, that freedom of the before it was launched. air and the safety of flight routes for the world’s airlines and Asiana Airlines have not adjusted is paramount. their flight paths because their aircraft do not travel Dialogue needs to be redoubled to allow timely and through northern Japan, nor have All Nippon Airways accurate information about potential threats along the and . The Japanese carriers said that they world’s airways so carriers can divert their routings from had no information about the timing or trajectory of danger. The devastating shoot-down of Airlines missile launches so they had no reason to believe one MH 17 over the Ukraine in July 2014 is still too fresh in route was safer than another. everyone’s minds to allow such a tragedy to ever happen Dozens of daily flights from North America also again.

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

OCTOBER 2017 / ORIENT AVIATION / 5 ADDENDUM

Former Abu Dhabi boss to chart Etihad’s new course

All industry eyes will soon be on Tony the UAE and the UK and he understands Douglas, 55, a veteran Middle East hand who the UAE and the region. He also is deeply has been chosen to claw the Etihad Aviation knowledgeable about commercial aviation Group back from the abyss of its failed global and keenly familiar with Etihad’s challenges alliance strategy. Lancastrian Douglas, who and opportunities in a rapidly changing began his working life as a toolmaker on the industry.” factory floor, is to depart as CEO of Britain’s Al Mazrouei said the new group CEO Ministry of Defence procurement division would guide the company in implementing and assume control of the Gulf group in “a range of strategic initiatives”. Douglas has January. his work cut out for him. Two of the group’s The successor to James Hogan has deep equity partners, airberlin and Alitalia, have credentials for the job. He has held senior entered administration. Recently Etihad sold positions in the Emirate including CEO of its holding in Swiss regional carrier, Darwin both the Adu Dhabi Airports Company and Airline. Abu Dhabi Ports. In the latter position, he “Etihad is an economic and employment Services Chris Youlten; Hala Group managing was responsible for the successful delivery of engine for the UAE and the region. With director Gavin Halliday and Airline Equity Khalifa Port. new infrastructure and attractions like the Partners CEO Robin Kamark. In Britain, Douglas worked for the British expanded airport, the Louvre Abu Dhabi and Under the leadership of former group Airport Authority where his responsibilities the Abu Dhabi Global Market, Etihad has a CEO, James Hogan, who left the company have included managing director of the central role in supporting the UAE’s position earlier this year, Etihad pursued a strategy Heathrow Terminal 5 project, group supply as a global hub of transportation, tourism, of a global alliance tied together with equity chain director and group technical director at commerce and culture,” Douglas said in a airline partnership across Europe and the the authority and CEO of Heathrow Airport. company statement. Asia-Pacific. Douglas will take over from interim The Etihad Aviation Group has five Some of the investments have turned group CEO, Ray Gammell, who will return divisions and six airline equity partners bad, a situation that resulted in the group to his former role as group chief people and - airberlin, Air Serbia, Air Seychelles, reporting a US$1.87 billion loss for the 2016 performance officer. Alitalia, Jet Airways and Virgin . The year. In January it was announced that Hogan Etihad Aviation Group chairman, Al divisional heads are Etihad Airways CEO Peter was stepping down from the top job. It was Mazrouei, said: “Douglas has guided the Baumgarten; Etihad Airways Engineering later confirmed he would leave the carrier by transformation of large organisations in CEO Abdul Khaliq Saeed; Etihad Airport mid-year.

Asia leads world in budget carrier connectivity

snapping at its heels with 35,000 possible low-cost connections in a single day, followed closely by . Speaking about connecting flights in general, OAG executive vice president product management, Mark Clarkson, said: “the Asia-Pacific is continuing to grow as a key area for connecting flights and China is at the forefront of the surge. “Singapore tops the list of Asia-Pacific airports, which is not a surprise since it is the main connecting destination to Australasia. But the emergence of countries such as and Malaysia paint a promising picture for the Four out of five of the world’s top international budget airline hubs. region’s connectivity to the rest of the world. low-cost megahubs are in Asia, the annual Thirteen more Asia Pacific airports were “South Asia and have led OAG Megahubs International Index reported among the top 50 of the global list, including the success of LCCs by meeting international last month. Kuala Lumpur, home of the AirAsia top ten members India and Thailand, and needs in the region, which is particularly Group, topped the list followed by Jakarta (2), China’s Beijing, and Guangzhou. important for less economically developed Singapore (3), Delhi (4) and Los Angeles (5) Kuala Lumpur was the clear global leader areas such as parts of India and smaller nations in OAG’s list of its 25 busiest interconnecting for connectivity said OAG, but Singapore was in the region.”

6 / ORIENT AVIATION / OCTOBER 2017 ADDENDUM

th 10 New CEO named at Beijing’s Ameco edition

China’s Ameco has appointed serving in several senior roles at a new CEO from within its head the MRO’s Beijing headquarters. office ranks. Former executive In 2015 Air China Technics vice president and chief strategy and Ameco merged into one officer of the Sino-German joint entity that integrated several venture, Ni Jiang, took over as Air China repair bases across CEO last month. Ni has been the country. The merger general manager at the former also resulted in a changed Air China Technics Chengdu Ameco-Lufthansa Technik joint Maintenance base as well as venture equity structure. Under the “New Ameco” the Beijing , Republic of Korea headquartered maintenance company holds 75% of Ameco November 1 - 2 - 3 - 2017 and the German MRO 25%. COEX, Convention and Exhibition Center The group has maintained its role as the MRO for flag carrier, Air China, but is making Including a well-funded strategic push International Carbon Technical Posters into the larger global market as Festival VIP Club China’s airliner fleet continues to Exhibition inflate. The digital challenge for Job Center JEC Conference Asia-Pacific MROs. Page 28. Innovation Awards B2B meetings Composites Tours Innovation Corner WiFi a win-win for Asia-Pacific airlines With the support of: Offi cial sponsor: Sponsored by: A London School of Economics Inmarsat, the study said the study, Sky High Economics, Asia-Pacific would benefit from Quantifying the Commercial US$10.3 billion in revenue Opportunities of Passenger by 2035, from all sectors of Connectivity for the Global broadband IFE. Europe would In partnership with: Airline Industry, has forecast that be worth US$8.2 billion for the the inflight broadband market same period followed by North will be a US$130 billion global America (US$7.6 billion). business by 2035 and that the Broadband ancillary revenue Asia-Pacific will be the biggest would come from broadband market of all for the sector. access charges, e-commerce Conducted in conjunction and destination shopping, with mobile global advertising and premium Get your badge now on www.jecasia-badges.com communications provider, content, the study said.

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Thai airlines struggle despite safety upgrade

Restoration of Category 1 status for Thailand’s aviation industry is a significant step forward in the recovery of the country’s regulatory reputation, but Thai airlines will need more than improved credibility to return to profit. Chief correspondent, Tom Ballantyne, reports.

hailand’s airlines are battered and bruised by regulatory missteps, shifting passenger Ttastes and weak leadership. And there is no doubt there will be more pain ahead. Collectively, Thailand’s 21 home grown airlines have been damaged in the minds of passengers by the 2015 a reversal of a $93.4 million last year. Its income for the Airways, Nok Air, NokScoot, THAI, imposition of an International interim profit 12 months earlier. six months was $22.4 million, Thai AirAsia, Thai AirAsia X, Thai Civil Aviation Organisation (ICAO) Another poor performer, 50% lower than in 2016. Lion Air and Airways. red flag on Thailand’s aviation part-owned THAI budget carrier, It is difficult to assess the Civil Aviation Authority of regulatory system. But fast Nok Air, has announced a second impact of the ICAO ruling on Thailand (CAAT) director, Chula growing and fiercely competitive quarter loss of $22.7 million. Full individual airlines, but there Sukmanop, said the flaws in the budget carrier expansion has service airline, Airways, is no doubt it made life tough country’s aviation regulatory not helped their situation. reported a first half loss of $15.8 for Thai carriers. After the oversight system raised by The impact on carriers million, 365% higher than its red flag was raised, some ICAO have been addressed, of the industry stigma of the year ago loss of $3.4 million. countries put limitations on including the amendment of laws ICAO red flagging has been At Nok Air, a conflicted operations by Thai airlines and related to the re-certification compounded by extremely management situation looks also conducted safety audits of Air Operator Certificates low yields and increased set to be resolved following the on their aircraft. China, a key (Re-AOC) to airlines. fuel and fuel excise costs. resignation of well-connected market for Thai carriers, allowed The CAAT and the Transport At press time, only Thai CEO, Patee Sarasin, from the existing schedules to continue Ministry expect to receive the AirAsia had reported a profit LCC on September 14. NokScoot but barred flight launches. official results of ICAO’s latest for the year to date, and its CEO, Piya Yodmani, took his The red flag is expected to be audit next month. Chula said results were much lower than place. The top level change was removed by year end, following a the CAAT planned to complete for the same months in 2016. widely believed to have been new ICAO safety audit scheduled the process of re-certifcation Top of the list of loss-makers encouraged by THAI. Patee will for the last week of September. of the remaining 12 effected was government controlled Thai remain at Nok Air as board vice The restoration of category 1 airlines by January 31 next year. Airways International (THAI). chairman but his status as the ICAO status will lift network, Signing off the AOC It posted a net loss of $157.2 continuing chairman of NokScoot capacity and equipment re-certification is considered million in its second quarter has yet to be established. restrictions for all airlines fundamental to the CAAT’s to June 30, a much larger loss Rival Thai AirAsia, which issued with re-certification of efforts to restore Thailand’s than the $88 million interim is the country’s largest LCC, Air Operator Certificates. aviation safety standing. deficit of a year ago. For the announced a $5.2 million Nine airlines held re-certified But uncertainty still clouds first six months of 2017, it was profit for the three months to AOCs at press time. They are the industry in Thailand. in the red for $61.4 million, June 30, a 60% decline over , New Gen Apart from the resignation of

OCTOBER 2017 / ORIENT AVIATION / 9 NEWS BACKGROUNDER

Nok’s Sarasin, THAI has been Like its peers in the region, trend abating, although THAI’s would launch its China campaign run by an acting president, THAI is facing a deluge of budget negative results are not stopping with new charter flights; a Usanee Sangsingkeo, since competition. In the first half it from developing its network critical element of its turnaround January this year after former of this year, LCCs operating in and fleet. THAI’s Usanee said strategy. The cash-strapped president, Charamporn Thailand accounted for 46.2% the airline will fly four times a LCC will add ten China routes Jotikasthira, completed his of all passengers moving week between Bangkok and this month. The Chinese cities contract at the airline. through the country’s six main Vienna from November and is to of Yinchuan, , Linyi, The failure to appoint a airports, up from 43.9% in take delivery of five new planes Yichang, , and Haikao permanent president does the same period last year. - three Airbus A350-900XWBs will be served non-stop from not help Usunee’s efforts Rising in tandem with and two Boeing B787-9s. It U-tapao, where only a handful to address many of THAI’s passenger growth was the share also will decommission two of of commercial airlines now perennial problems of of flights by LCCs. They operated its A330-300s by year end. operate, and charter routes from underperforming staff and fleet 47.6% of overall aircraft The company is taking Bangkok’s Don Mueang will fly and equipment mismatches. movements recorded from part in the development of to Zunyi and . Other THAI’s latest loss, in the January to June compared with the U-tapao airport, with the new destinations on Nok’s radar second quarter to June 30, 43.7% in the previous period. goal of making it the most are the Philippines and India. was reported despite a 9.6% Figures from Airports modern aviation repair hub (TLA), increase in revenue year-on-year, of Thailand (AoT), which in Asia-Pacific, she said. associated with Indonesia’s Lion to $1.37 billion. Passengers runs big Thai airports such But the low-cost airline army Air group, is stepping up its carried jumped by 14.9% and as Suvarnabhumi and Don is continuing to expand and operations. It flies B737s, but in load factor improved by 9%, Mueang in Bangkok, revealed if ICAO’s red flag is removed November it will take delivery to 78.5%. However, operating LCCs increased their passenger and the aviation industry is of its first A330-300, with costs rose 8.6%, to $1.4 billion. numbers in the first half of the restored to Category 1 status, two more of the type arriving The biggest hit to THAI’s year by 13.7%, to 30.5 million. they will launch plans for at the carrier in December. bottom line for the reported Budget passenger expansion massive expansion in China. It TLA CEO, Aswin months were currency losses also showed robust double-digit is a market where passenger Yangkirativorn, said the of $72.6 million, booked losses growth both internationally traffic has been slow to recover aircraft primarily will be used from the dilution of the airline’s and domestically at 14.1% after a well-publicized Thai/ to launch regular services from shareholding in Nok Air ($12.9 and 13.5%, respectively, to China zero-dollar tour scam its Bangkok Don Mueang base million) and the impairment of 10.9 million and 19.6 million. was broken up two years ago. to China, Japan and South assets and planes ($11.8 million). There is no sign of this Nok Air has announced it Korea. Traffic rights have been

Last chance for Nok Air

The new chief executive of . He has ments was Nok’s deferral of Thai budget carrier, Nok Air, has resigned from that position to were frequently delayed or eight new B737 Max 8 jets and immediately set about turning devote his full attention to the cancelled. the decision to phase out seven the struggling airline around. task ahead at Nok. The airline has suffered existing aircraft to reduce the Piya Yodmani, who took over last He said important priorities combined losses of nearly $150 month from Patee Sarasin, said: were restoring staff morale and million since 2014. Piya would Boeing have agreed the new “My preoccupation is to stop the planes will arrive at Nok a year bleeding and ensure the business the airline. In the last two years, later than originally scheduled. turnaround plan is brought to Nok has had several damaging He said it would be a breach of The seven retirements will save fruition as soon as possible.” periods, including cockpit crew SET (Stock Exchange of Thailand) aircraft leasing costs. Patee’s departure was no shortages after a mass exodus of rules, but he stressed he was Nok Air wants to raise the surprise to industry observers. pilots from the LCC in February eager to see it happen soon. utilisation of its aircraft to an He had run the carrier since 2016. The dispute caused outrage - average of 11 hours a day from it was launched 14 years ago, the current eight hours. although his relations with Piya’s arrival at Nok has senior executives at encouraged THAI to support a (THAI), a 21.57% shareholder in proposed $51.4 million share sale Nok, often were turbulent. Patee to raise funds for the airline. THAI will remain on the Nok Board and would take up 245 million shares will serve as vice chairman. for $11.1 million. THAI appeared Piya was chief executive to have accepted the new CEO’s of the long-haul budget carrier, business recovery plan to give NokScoot, part-owned by

10 / ORIENT AVIATION / OCTOBER 2017

CFM International is a 50/50 joint company between GE and Safran Aircraft Engines

C39062.020_CFM_UTILUPTIME_OrientAviation_Jun17_273x202_v2.indd 1 26/05/2017 09:54 NEWS BACKGROUNDER

acquired to fly to Shanghai with a fleet of 12 B737s and the airline has applied to The fierce competitive add Beijing to its network. environment has had a disastrous THAI’s subsidiary, THAI effect on airlines like Nok Air, a Smile, is increasing Phuket- situation that will only intensify, Guangzhou and Phuket-Shanghai as Singapore Airlines, Emirates, from this month by four and Etihad and Lufthansa increase seven flights a week, respectively. flight frequencies to Thailand in It also will offer more frequency response to growing demand elsewhere in China. Bangkok- from European, American and will shift up from five into the market is privately- Sornprasit, recently said the North Asian travellers, he said. to seven flights a week, Bangkok- owned , scheduled charter model allowed “Our business model has kept us Changsha from four to seven a which operates a “scheduled it to stay away from the fierce above the price war,” he added. week and Bangkok-Chongqing charter model”. Established in price war at airlines in Thailand. THAI is committed to from five to seven times a week. 2013, it is 51%-owned by a Thai New Gen sells 100% of moving ahead with plans to THAI Smile acting chief maintenance, repair and overhaul its tickets to travel agencies, ensure long-term profit growth, executive, Wiwat Piyawiroj, said (MRO) company and 49% by which is unique among Thai Usanee said. Its rehabilitation expanding its Chinese network two Chinese travel agents based carriers. It results in less plan calls for the carrier to lower would cash in on Thailand’s in Shanghai and . exposure to competition, expenses and boost revenue. prime source of tourists. The The carrier moved into Jarupong said, especially as She said the plan will focus Tourism Authority of Thailand the black a year after it was local airlines are losing market largely on product and service predicted 10 million Chinese launched. In each of the last two share to deep-pocketed foreign improvement, fleet and network will visit the country this year, years, it has reported profits of carriers. New Gen flies Chinese management, revenue and cost up from eight million in 2016. more than $150 million. New tourists to Thailand from 26 management, new investment One relatively new entrant Gen chief executive, Jarupong secondary cities on the Mainland and human resources.“

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12 / ORIENT AVIATION / OCTOBER 2017 EXECUTIVE PROFILE RIGHT PLACE, RIGHT TIME AirAsia has celebrated its 13th anniversary in Macau and appointed Celia Lao as AirAsia CEO for Hong Kong and Macau.

By Dominic Lalk

t all started in 2002 after Fernandes had bought loss- especially in the Asia-Pacifc, started to know Macau once making AirAsia for one Malyasian ringgit (US$0.23) AirAsia operated there.” with the intention of bringing low-cost fying to the By this time, in 2004, Lao had moved to AirAsia, where Asia-Pacifc in 2001. Lao, then a young marketing she was the frst person to be employed by the LCC in Hong manager of the six-year old – and struggling – Macau Kong and Macau. Since then, she has risen through the ranks IInternational Airport, met the Malaysian entrepreneur. and is now CEO for the AirAsia group for Hong Kong and Lao was selling Macau and Fernandes asked if she Macau. Her responsibilities include business development, could ofer AirAsia a good deal to begin fying to the route planning and government relations. gambling enclave. “I was attending many international route “Tony [Fernandes] always says I grew together with conferences back then and nobody knew where Macau was. I AirAsia. When I joined the airline, I was single. Now I have needed to sell Macau frst before selling the airport,” she said. three kids,” Lao told Orient Aviation from Macau. Macau International Airport had opened in 1996, “I took care of expansion in China. I when Macau was a Portuguese colony. It was largely a set up Macau in 2004 and then vanity project that had became close to a white elephant Xiamen in 2005. At the time there airport in the Pearl River Delta. In the frst three years of its were no low-cost carriers in China. operation, before Macau was returned to Mainland China, Spring [Airlines] had not started. TAP Portugal few one stop Macau-Bangkok-Lisbon A340 Low-cost airlines book everything services twice weekly between the two cities. online. In 2005 nobody had TAP terminated the service in the lead up to Macau’s smartphones or credit cards. To handover to China in 1999. “In 2002, Macau was still a be honest, it was very difcult white elephant airport,” said Lao. “At that time, because in those early days,” she said. Taiwanese airlines could not fy directly to China, they “But we were lucky would make a technical stop in Macau and then fy onto because we went into China China,” she said. But gradually, from 2004, as the door opened to cross strait fights AirAsia flies to 15 between the Mainland and Taiwan, destinations in the Mainland. Macau airport welcomed low-cost carriers to fll the revenue gap left by The group is one of Airbus’ the departing Taiwan carriers. best customers with its order “Macau airport made the right of 174 A320ceo, 304 A320neo, decision at the right time, otherwise it might still be a white elephant 100 A321neo as well as 20 airport,” said Lao. “Our (AirAsia) A330-300s, 66 A330neo and LCC trafc supplemented the loss 10 A350-900s for its long- of Taiwan trafc at the right time. “AirAsia helped put Macau on the haul AirAsia X carriers map. People around the world,

OCTOBER 2017 / ORIENT AVIATION / 13 EXECUTIVE INTERVIEW

by channelling trafc through its hubs to feeder fights across Southeast Asia and also long-haul to Europe, Hawaii and Australia. In Macau and Hong Kong, Lao is banking heavily on Mainland cross-border trafc for growth. In late August, AirAsia began partnering with Express Link, a new bus service that shuttles passengers from the Mainland border to Macau Airport. It is similar to the ferry services operated from several of China’s Pearl River Delta ports to Hong Kong International Airport. Lao hoped passenger volumes would increase by 20%-50% after the service has been established. “More than 80% of our clients are individual tourists,” said Lao. “Terefore, the launch of the shuttle would greatly impact our [value proposition early. Our Mainland to] individual tourists.” Approximately 30% of AirAsia network is huge now. And you can see customers in Hong Kong and Macau are tourists from the we managed to acquire some very good slots in key cities Mainland, she said. like Guangzhou and Shenzhen,” she said, but added that “Diferent routes have diferent conditions. For example, unfortunately those days were over. 50% of Chinese tourists take the fight to Bangkok, but there Lao said AirAsia’s growth in Hong Kong is curtailed by are fewer for Kuala Lumpur because more Malaysians visit acute slot shortages at its airport (HKIA) and will remain so Macau,” she said. until the third runway opens in 2023. Flights from Macau to Southeast Asia’s island resorts “In Hong Kong, we cannot open any routes. It is very were under consideration, with Macau-Phuket most possibly constrained. Te third runway will still take a very long the next route to be announced. time to fnish. Te Hong Kong Civil Aviation Department Te 24-hour border crossing facilities between Macau (HKCAD) encourages us to swap our A320s for A330s on and the Mainland as well as the completion of the Hong fights to Kuala Lumpur and Bangkok to maximize the value Kong-Zhuhai-Macau Bridge would improve Macau airport’s of our slots,” she said. market proposition, she said. “We applied to fy to Jakarta, but we could not get “Mainland travellers can exit from Macau and return the slots. We have applied many times, but still no Jakarta home via Hong Kong so they can visit both Special because the HKCAD gives preference to new destinations,” Administrative Regions (SAR),” she said. she said. AirAsia Group’s biggest opportunity yet will be on the AirAsia is not looking to form a joint venture in Hong Mainland. In May, the group signed an MoU with two Kong. “Remember what happened to Jetstar in Hong Kong. Mainland partners to establish AirAsia China, a low-cost Already, we have signed Memorandums of Understanding carrier to be based in Zhengzhou, the capital of Henan (MoU) in China, Vietnam and Cambodia,” she said. province. “Resources also are becoming very limited in China. No Te Chinese partners are the China Everbright Group, a slots are available even in second and third tier cities. It is the conglomerate with a major shareholding in the Hong Kong- reason we are focusing more closely on Macau as a base for headquartered China Aircraft Leasing Group (CALC), and regional fights.” a state-controlled think tank, Henan Government Working “Long-haul from Macau will come at a later stage. We Group. must start more regional routes frst, but it is defnitely a At press time, it had added two Japanese investors to possibility. Macau has open skies and many ffth freedom the venture. Te parties have agreed, in addition to setting rights available. Between Malaysia and Macau and Tailand up the LCC, to invest in a dedicated low-cost terminal at and Macau it’s fully open. We could easily do, for example, Zhengzhou Airport, a MRO facility and an aviation academy Kuala Lumpur-Macau-Vancouver with an A330. Tis is to train pilots, engineers and cabin crew. something for the future.” Te AirAsia China investors believe Zhengzhou will AirAsia has double daily fights from Macau to each become more important as China’s ‘One Belt, One Road’ of its bases in Kuala Lumpur and Bangkok’s Don Mueang policy becomes a physical fact. Zhengzhou is one of China’s airport. It also fies to and U-Tapao. Recently, key logistical hubs, with many of the world’s largest cargo it inaugurated a three times weekly service from Macau to airlines ofering scheduled services into Zhengzhou. Jakarta, its third hub. Cargolux is in the process of establishing Cargolux China in Te airline group aimed to be a low-cost network carrier Zhengzhou.

14 / ORIENT AVIATION / OCTOBER 2017 FRA_4433_2017_Imageanzeigen_SoE_202x273_5mm_R_OrientAviation_RZ01.indd 1 28.07.17 13:13 MAIN STORY ASSAULT ON CYBER VANDALISM The threat of cyber-attacks on aviation critical IT systems is ever present. Alerted to the enormous damage cyber vandalism can inflict on their businesses, airlines are investing billions to protect their passengers, staff and every part of their operating systems from internet assault. Chief correspondent, Tom Ballantyne, reports.

hree years ago, published research by a security protection and research to strengthen their defences well-regarded commercial aviation consultancy against cyber assaults. “In the highly woven transport revealed that more than 40% of the world’s industry, cyber-attacks are a very real threat, said SITA airlines did not have any protection from president Air Travel Solutions, Ilya Gutlin. cyber-attacks. Tis is no longer the case. Te risk of cyber-attacks has been an increasingly TIn a 2017 transport industry trends report published last common subject of discussion in recent years with security month, it was estimated that this year airlines and airports experts constantly warning the industry that a major event is will spend almost $33 billion on IT and the number one inevitable. priority of that expenditure will be cyber security. Until now, hacker attacks have been relatively minor and By 2020, the SITA Air Transport IT Trends report said, airlines prefer not to discuss any invasions of their systems. A 95% of airlines and 96% of airports would have year ago, Philippine Airlines confrmed it had been the invested in cyber target of a cyber-attack but declined any requests for details about the incident. Recently, the release of the WannaCry virus was known to have struck at some of the systems at some airlines. Analysts at global consultancy, PricewaterhouseCoopers (PwC), said cyber security has become an elevated risk and one of the most pressing issues for businesses, including aviation. “Today’s cyber adversaries are more persistent, skilled and technologically savvy than just a year ago. Leaders across all industries are taking notice,” PwC said. Some 85% of airline chief executives the Big Four frm surveyed saw cyber security as a signifcant risk, refecting the highly sensitive nature of fight systems and passenger data.

16 / ORIENT AVIATION / OCTOBER 2017 MAIN STORY

reinforce cyber security in commercial aviation. “Te Unscheduled disruptions of aviation supply chain covers a wide variety of businesses, transport carrier operations can have from original equipment manufacturers and Tier 1 suppliers to airlines, airports and third party MRO providers,” it said. a substantive economic impact on “Tis presents an interesting dilemma because not only third parties and national economies. do you need to secure and protect data accumulated from Preventing disruptions caused each party, you also need to be able to share it across this broad supply chain. by cyber events is increasingly a “Blockchain technology is emerging for this very primary focus for those involved purpose. In a Blockchain, each record or ‘block’ of data has its own time stamp and is encrypted with credentials in a in global air transport peer-to-peer relationship. It makes malicious tampering PricewaterhouseCooper (PwC) extremely difcult. All ‘blocks’ are linked to the previous block of data, meaning the only way to tamper with its “Tey also know they have to constantly monitor and content is to have the entire network of trusted peer-to-peer evolve their cybersecurity programs to keep pace with contributors collude to corrupt the chain.” advancing and shifting threat vectors from loyalty programs IFS said Blockchain is still some way from widespread to aircraft operations to back-ofce technology platforms.” adoption and is just a concept for airlines at this time. “From Along with SITA, software solutions provider IFS has keeping aircraft in the air to checking in passengers, aviation pointed out that the use of the cloud and blockchain can organisations rely heavily on IT systems.

Critical elements for effective cyber defence at airlines*

* Oversight at the board level and building a security culture: * Address supply chain risks: A cybersecurity program has to rest on a risk-based framework that addresses risks across the airline including - - - ing systems because failure in one area can affect others. niques to share best practices to increase the knowledge base. more cyber aware as breaches can occur as a result of small for potential security breaches and manage the access of users lapses in procedure. But security awareness training is not to different systems. enough. Airlines need to incorporate cyber awareness into * Threat intelligence: - organizational fabric. * Having a proactive approach that sets priorities: threats among colleagues. - * Security awareness: - - * Support international standards: has called for better sharing of airline cyber threats among cybersecurity.

* Aviation Perspectives: cyber security and airlines PricewaterhouseCoopers (PwC)

OCTOBER 2017 / ORIENT AVIATION / 17 MAIN STORY

such as passenger Wi-Fi, real-time air-to-ground Airline executives are communications are evolving to support mission critical functions such as infight fuel adjustments and aircraft accustomed to managing high-risk health monitoring, both of which could severely disrupt business environments. Airline safety airlines if compromised. Te safeguarding of data has and security programs have been become a major challenge for airlines, one that threatens to disrupt key practices for the entire industry. maintained at such a high standard Compliance remains a top priority, IFS said. that other industries have tried New generation cloud solutions can be set up in their to emulate them. own separate environments, which today have the potential to be far more secure than any previous private or But now airlines are confronting on-premise data centre. “As the name suggests, cloud a new set of risks in the cyber containers create isolated boundaries of data which means domain where the challenge of that if anything goes wrong in one container, it only afects that single cell and not the entire system – helping to reduce protecting their passengers, flight the threat of a wider cyber-attack,” said Cass. crews, and trading partners is rapidly Keeping up with cyber developments requires airlines to adapt to new technology. Legacy systems pose a stumbling becoming more complicated block, especially when it comes to dealing with compliance regulations and data protection – the cost of which can be damaging in an industry where safety is the top priority. “But data collected from the growing number of PwC said airlines must determine what “reasonable aircraft, routes and passengers has increased pressure on security” means for their organization. “What is reasonable these systems, while legacy and infexible IT systems are for a regional carrier operating a single model feet of leaving airlines vulnerable to the growing threat of regional jets built by one manufacturer and fying to 32 cyber-attacks.” gates per day is vastly diferent from a global carrier Vice president strategy at IFS’s Aviation & Defence operating a mixed feet from multiple suppliers fying to Business Unit, Jef Cass, said like most industries, airlines hundreds of global destinations that include high cyber and are realising that threats are just as likely to come from physical security threat locations,” it said. inside the organisation as from the outside. “A good way to consider trade-ofs for prevention is to “Cyber-attacks have been reported at airports across the analyse the horizontal breadth of protection and the vertical world, and it seems only a matter of time before we see an depth of preparedness. For example, if an airline invests too attack on a major airline. In response to this threat, many much in the latest prevention tools (vertical depth), it risks commercial aviation organisations are actively hiring chief lagging in the horizontal investment to protect the breadth security ofcers. Te SITA Airline IT Trends Survey said the of the airline’s value chain—interactions required with number of airlines that were advancing preparations to OEMs, MROs and global distribution systems (GDS). manage cyber risks had almost doubled in three years.” “Conversely, carriers that underinvest in vertical With more IoT-enabled (Internet of Tings) sensors preparedness risk having a security portfolio that lacks tools being used, it is newer aircraft feets that are more at risk and techniques to detect and prevent more sophisticated from cyber vandalism. Increasingly being used for services attacks.”

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Airbus strengthens China ties with A330 Tianjin centre

Joint venture partners, Airbus and China’s AVIC, added more industrial might to their relationship with the opening of US$200 million A330 Completion & Delivery Centre in China last month. Chief correspondent, Tom Ballantyne, reports from Tianjin.

hen it yes, it helps you penetrate the Describing China as a “very of the C&DC. While the A320 comes to market,” he said. business friendly country”, is assembled in Tianjin with co-operation Brégier said following the Brégier said: “there is a direct components shipped from with China, ground breaking rollout of the connection between your Europe, A330 aircraft passing Airbus chief its joint venture A320 Final investment and your capabilities through the C&DC are built Woperating officer and president Assembly Line in Tianjin 12 years to demonstrate you care about in Europe then flown to the commercial aircraft, Fabrice ago, the group’s new investment the Chinese industry and, at the Mainland empty and unpainted. Brégier, has absolute clarity in Tianjin was fundamental to its same time, your market access.” When the airplanes arrive in about Airbus’ strategic goals. long-term goal of dominating Airbus’ market share in Tianjin, the completion process Speaking at the opening aircraft sales in China. China had increased from includes cabin installation, ceremony of the joint venture Brégier also confirmed that a 20% to almost 50% since aircraft painting, production A330 Completion & Delivery ramp up in the number of A320s the Toulouse headquartered flight tests, customer flight Centre in Tianjin last month, was being considered and that manufacturer opened its A320 acceptance and aircraft delivery. he said: “This is the best a completion delivery centre for Final Assembly Line in Tianjin, More than 150 Chinese demonstration of a strategy Airbus’ latest wide-body, the he said. employees at the new C&DC that is balanced with Chinese A350, was a possibility given Brégier handed over the first were trained in Toulouse to staff partners who are strong and there were enough orders for A330 completed at Tianjin to the new facility. [you have] a good product, the aircraft from Chinese airlines. Tianjin Airlines at the opening Whether C&DCs for other

20 / ORIENT AVIATION / OCTOBER 2017 aircraft types will be constructed remained to be seen. Brégier said in Tianjin that Chinese carriers had ordered around 50 A350s. “We are supposed to deliver the first A350s to our Chinese customers before the end of this year. The A350 will be fantastic for the trans-Pacific network with its range and the seat count. Then the C&DC will be involved later to move to the A330 neo and the A350. We see it in the plan. We have additional big investment.” More problematic is the A380, which has been short of orders for several years. President and chief executive of Airbus China, Eric Chen, made a gutsy forecast about A380 prospects It is fair to accept that the biggest market for us [China] at the Tianjin launch when he said Chinese airlines (there are also deserves some industrial investment if we are to be five A380s in China operated by seen as a good Chinese citizen. And I do believe we are seen, China Southern) could be set to to a large extent, as a good Chinese citizen buy the plane in big numbers. “What I can say is that Airbus COO and commercial aircraft president, Fabrice Brégier, speaking at the opening of if one airline takes the lead the joint venture A330 completion & delivery centre in Tianjin on September 20 to order, the others will most probably follow. I would expect to 60 aircraft a month - total partners,” said Brégier. “Wide- First of all, I am sure part of the a domino effect. I am working production worldwide - there body aircraft completed in China domestic market will move to to produce that domino effect is extra potential. We have is an Airbus, and an industry, wide bodies,” he said. which has not happened yet,” invested in a fourth assembly first which demonstrates our “We have probably 60 330s Chen said. line in Hamburg. It would make mutual commitment to a strong flying domestic missions every “But I would expect them sense to increase the output and growing Chinese aviation day by Chinese customers, which [Chinese airlines] to have 60 from China, which is our biggest sector.” is already significant, and that to 100 A380s. When I look at market, so if we find a way to do “We are extremely pleased will continue because there the market flow, the passenger it in a competitive manner we with the partnership we have are slot shortages. The second flow and the route by route will decide to ramp up. The goal at Tianjin. We don’t intend to reason is you can see a big economics, I am fully confident is to do it without substantial duplicate the assembly line for progression in traffic from and Chinese carriers will need a additional investments,” Brégier the A320. We have extended to China. minimum of 60 A380s in the said. this partnership until 2026 [with “The growth is probably next five to seven years.” The new C&DC has a paint AVIC] and I can tell you it will go around 20% to 30% every year Brégier said a C&DC for the shop, a weighing hangar and much further because the A320 so there will be more demand A380 was a different question one main hangar with three will be successful until at least for wide bodies. This is why we to be addressed. “We invest in aircraft positions spread across 2030 for sure. invested in this cabin completion this facility when there is a big 16,800 square metres. It will “The question mark will be centre in China. It was supported market. So we need to make employ more than 250 people what do we do when the new initially by the first global sure the market is mature. If and will be ready to deliver two generation aircraft from Airbus order of 75 A330ceos [from there is a market, we are ready. aircraft a month by early 2019. are to be launched? We still have China]. We expect soon to have We know how to co-operate “The inauguration of our a few years to think about that.” additional orders.” and it might well also be on the A330 C&DC in Tianjin, together While single aisle planes are Three of the world’s top five A380,” he said. with the first of many deliveries, a big part of the Airbus order A330 operators are Chinese: Air In the meantime, Airbus marks a new milestone for book, Brégier sees more growth China, China eastern and China was studying an increase Airbus’ international footprint in China’s wide body fleet. Southern – and there are 202 in production of its A320 and underlines the strong spirit “There are two elements that A330 family aircraft flying with aircraft. “We plan to ramp up of cooperation with our Chinese justify a growth of wide bodies. Mainland carriers.

OCTOBER 2017 / ORIENT AVIATION / 21 COVER STORY THAILAND'S SMARTEST AIRLINE Thai AirAsia is the only Thai airline to be in profit this year. To maintain its winning streak, it is building a hub south of Bangkok to guarantee its expansion.

Dominic Lalk reports from Bangkok

hai AirAsia’s Tassapon Biljeveld is a man with a mission. Te 50-year-old founding CEO of the only proftable carrier in Tailand this year told Orient Aviation he will stay around until he “kills some of the enemy airlines”. TAnd he has his targets. “At the moment, the market is saturated. Tere’s way more supply than demand. Tere’s too many aircraft fying in the ASEAN airspace, especially in Tailand,” he said. “Te authorities have to be more proactive in governing the airlines that don’t have strong fnancial performance. If they go bankrupt at any time, it will afect the economy and also the passengers. Tere are rules and regulations on governance, but none of them are actively pursued. “We actually have a problem with our CAAT (Civil Aviation Authority of Tailand). It has to be more proactive. For example, if you have a negative balance sheet, a huge number, but you want to bring in more aircraft, I think the CAAT has to raise some questions. Its people should ask these airlines how they think they can market their seats and new destinations if their balance sheet is so weak.” Tassapon conceded, however, that there is very little he can do to bring about change. “I can only voice my concerns to the authorities, which I have done. I have to make myself strong by looking at my costs, making sure my costs are low and my balance sheet is strong. Our balance sheet continues to be

22 / ORIENT AVIATION / OCTOBER 2017 COVER STORY

very strong. Our costs are the lowest in the country so that makes us stand out from our competitors,” he said. ICAO downgrade did not hurt Aviation in Tailand had a turbulent 2016 and it is experiencing challenges this year. Profts and yields continue Thai AirAsia to dwindle at the kingdom’s carriers and they are being Thai AirAsia CEO, Tassapon Biljeveld, told Orient forced to slow expansion. Nevertheless, Tassapon has a Aviation the airline’s growth has not been effected by the trick or two up his sleeve to beat the market and have Tai International Civil Aviation Organization (ICAO) down- AirAsia come out on top. grade of Thailand’s air safety rating to Category 2 in 2015. “Life goes on. We are adding four to fve aircraft a year, with the ICAO downgrade at all because China does not opening new destinations, hiring more staf,” he told Orient acknowledge the ICAO ruling. We have added many Aviation in Bangkok. “It’s moderate growth every year, but destinations and increased frequencies to China in the it’s still growth.” last two years,” he said. For the frst half of 2017, Tai AirAsia had revenues of “In India, we have opened three cities this year and 17,486 million baht (US$529 million), an improvement of they don’t really care about ICAO either. All the ASEAN 5% compared with the same months in 2016. Te carrier’s (Association of Southeast Asian Nations), they don’t care.” net proft was down 48%, however, to 741 million baht The situation is very different at Thai AirAsia’s long- (US$22.4 million). Tassapon said the lower earnings were haul sibling, Thai AirAsia X (TAAX). “Our expansion had the result of higher fuel costs and a jet fuel excise tax on no correlation with the ICAO downgrade, but at TAAX we could not expand for the past three years now. domestic fights that CAAT introduced in January. “We can only add frequencies to destinations where In this year’s frst quarter, to March 30, Tai AirAsia’s average fares increased 11% year-on-year.Despite its growth - earlier in the year, the airline’s yields declined by 5% tions. Once it’s lifted, TAAX will add more destinations in in the second quarter as more carriers reinstated China and Japan.” frequencies and launched routes in competition The general consensus is that ICAO will soon restore with Tassapon’s carrier. Tai AirAsia’s main hub is Bangkok’s improvements at the CAAT and Thai carriers have been timeworn Don Mueang Airport, Asia’s oldest implemented. airport and Tailand’s gateway to the world As part of that process, the CAAT revoked the air until the opening of in early September, including those at in 2006. Don Mueang is congested and its domestic services. facilities need a facelift. In 2015, Don Tassapon said this had no impact on Thai AirAsia. “No, Mueang became the world’s largest there’s no impact. Not at all. Not at all. Of those 13, half of low-cost airport, handling 30.3 million them are not in operation. They hold the AOC, but don’t passengers that year and exceeding its use it. The other half are mostly charter airlines. There’s design capacity of 30 million. Don Mueang is a fagship for from them,” he said. Tailand’s booming free market economy. At no other airport will Airport,” he said. passengers fnd as much competition for “U-Tapao will be just like Don Mueang. Trafc will be their business as they do there. It also is ASEAN, Asia, China and India. AirAsia X, our long-haul the hub for Nok Air, NokScoot, Tai unit, will be there as well. Lion Air and New Gen Airways. “We can only add a few more aircraft to our operations As a result, Tai AirAsia in Don Mueang. It will be tough and it will be a long time is under constant pressure to before development takes place, e.g. new terminals and other expand, diferentiate and undercut infrastructure. the competition. But there are “Te plans come and go, but as far as I know they limitations at Don Mueng that even [AOT] are not planning to build any terminals at the the savviest sales and marketing moment. Even if they started building today, the time frame executives can’t overcome: to construct a terminal or extend the existing ones would insufcient ramp space and slots. be another fve years at least. I would rather put some of my “We are focusing on developing eggs in U-Tapao.” U-Tapao Airport as our next Tai AirAsia will not be alone at U-Tapao. Aggressive main hub. Don Mueang is full. We rivals like Tai Lion Air and New Gen Airways have set have to explore new opportunities. up bases at the airfeld, with most of their fights targeting We are working very closely with the Mainland tourists. NewGen plans to make U-Tapao its new government in developing U-Tapao base because of slot constraints at the two Bangkok airports.

OCTOBER 2017 / ORIENT AVIATION / 23 COVER STORY

Te airline’s business is focused on charter fights between serves Chiang Mai, Hat Yai, Macau, Nanchang, , Tailand and China. It operates an average of 30 fights a Phuket, Udon Tani and Ubon Ratchathani from U-Tapao. week to 25 Mainland cities with its B737 feet. Te expanding airport is a 30 minute drive south Hong Kong Airlines and LCC HK Express are of Pattaya, a coastal destination favoured by Mainland considering fights from Hong Kong to U-Tapao. Hainan tourists. It will open a passenger terminal by year end and Airlines fies from U-Tapao to Sanya three times a week. has the goal of increasing passenger arrivals from 800,000 AirAsia has been rapidly building its network from a year to three million in 2020. In the second phase of its U-Tapao since it launched fights from the airport in 2015. development, the Tai Navy-operated facility airport will AirAsia fies to Kuala Lumpur and Tassapon’s Tai AirAsia boost capacity to 15 million passengers annually by 2022. “Te government is pushing very hard and providing quite good incentives to develop U-Tapao. A high-speed train will be going there and a lot of infrastructure is being put in place. We think we can rely on U-Tapao as our new future hub,” Tassapon said. Quizzed on whether the government was handing out subsidies for fights to U-Tapao, Tassapon said he would not call it that. “Rather, I would say that because the whole big piece of land there, all the hundreds of acres, was declared a special incentive zone for investment, we got the board of investment involved. We got some tax rebates, all sorts of things,” he said. U-Tapao is not the only Tai seaside destination the group hopes to conquer. Across the Gulf of Siam, in Hua Hin, AirAsia has just closed a deal with the local airport. “We just fnalized it. AirAsia from Malaysia will be starting from there in November or December with fights between Hua Hin and Kuala Lumpur,” he said. “Tai AirAsia will probably commence fying from Hua Hin to either Singapore or Hong Kong. We are working on it. We have good support from the city and from the airport itself. Immigration facilities are in place.” Tai AirAsia has a feet of 54 A320 aircraft, including four A320neo. It added three neos in the frst half of this year and will take delivery of another three by December 31. “We are adding six aircraft this year and six next year. In the following three to four years we will be adding fve aircraft annually,” Tassapon said, and added all of its future deliveries will be the re-engined neo variant. Now in its 14th year of operations, Tai AirAsia serves 52 destinations in 13 countries with 80 routes. Tis year it has added Don Mueang-Da Nang, Chiang Mai-Ubon Ratchathani, U-Tapao -Ubon Ratchathani and U-Tapao-

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Phuket. It has increased frequencies out of Bangkok to group, purchased a US$225 million stake in Tai AirAsia. Khon Kaen to fve fights a day; Roi Et to three fights a day; Te acquisition of 39% of holding company Asia Penang to two fights a day; Phnom Penh to three fights a Aviation PLC makes the second largest day; Chiang Mai to Surat Tani to two fights per day and shareholder in Tai AirAsia. “Whenever we raise our from Hat Yai to Kuala Lumpur and U-Tapao to Udon Tani hands they will come in and help us out, especially with also to twice daily fights, respectively. regards to connections with the government and issues In recent months, India has become a focus for with the airport,” Tassapon remarked on the King Power expansion. Te airline believed the Tailand – India shareholding. market has huge potential for investment and tourism. It would appear that Tassapon and his Tai AirAsia have In September, it launched fights from Bangkok to Jaipur the right friends in the right places and he is not ready to call and Tiruchirapalli, complementing its existing network it quits any time soon. “When I kill some of those enemy to Bengaluru, Chennai, Delhi, Kochi and Kolkata. It also airlines, then I will move on,” he laughed. ofers daily fights to the Maldives. “Te China market used to be very good, but since the zero baht tours crackdown it has not returned to where it A321neo to solve capacity was. Its a bit tough. We are not making a loss, but we are growth? losing a lot of yield on our China routes. I hope next year it will go back to where it was, so China can become strong Thai AirAsia needs larger aircraft. The LCC has consistently high load factors. In 2015, its load factor again,” Tassapon said. averaged 81%. A year later, it had reached 84%. To date, in Tailand and Tai AirAsia have shifted their focus to individual Chinese travellers. Te kingdom and its frst Another reason for the acquisition of higher-capacity budget airline also had some luck come their way after aircraft is the growing congestion and slot shortage at many Chinese and South Korean diplomatic relations deteriorated of the region’s airports. over the deployment of U.S. military weapons in South “We are working on acquiring the A321neo. We have Korea. As part of the fallout, Beijing banned Chinese tour not decided yet, but we are looking into it with our opera- groups from visiting , which gave a fllip to the tions team because a lot of airports are slot-congested. As Tai tourism. To June 30, Mainland arrivals in Tailand were up 8% over the same period in 2016. to use bigger planes,” Tassapon said. “We are still crunching the numbers. The operational Tassapon is worried that the threat of a glut in the team is determining if we can turn around an A321 in market and over ordering is real, but he has more immediate the exact same time as an A320. If it works, we must be issues to manage, including his investors. Challenged about Tai AirAsia’s declining proftability in the frst and second AirAsia has 100 orders for the A321neo and approx- quarter of 2017, he was quick to point to the increased jet imately 260 more orders for the A320neo. Its contracts fuel price. “I’ve been telling the investors that you cannot compare larger A321s, according to the airline’s latest operational this year’s numbers to last year’s numbers. Tey will be requirements. down by at least 40%-50%. Te fuel price last year was “For example, we have three flights a day from much less than this year. So, if you apply last year’s fuel price Bangkok to Hong Kong. I would like to add two, three more, because there is demand there, but Don Mueang to this year’s operational environment, the number [proft/ is congested and in Hong Kong, obviously you can’t get loss] would be exactly the same,” he said. Te airline has any more slots, so we need to look at bigger aircraft,” 74% of its fuel requirements hedged at US$62 per barrel for said Tassapon. the remainder of 2017. “But if it’s too big, like an A330 in the same slot, we Tassapon is confdent he will achieve a good result for Tai AirAsia in 2017, but he admitted something we are looking into. It’s not that much bigger the net proft could small. “I can’t mention but at least you have 30-40 additional seats.” the numbers because the market will screw me, but my target passenger count is 19.5 million. I am 100% sure I will achieve that number. I will also achieve my revenue target, but in terms of proft, it might be a little bit down because of the yield erosion in the China market.” Tai AirAsia is 55%-owned by Asia Aviation PLC and 45%-owned by the Malaysia-based AirAsia Group. In 2016, King Power, Tailand’s largest travel retail

26 / ORIENT AVIATION / OCTOBER 2017 +

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Maint_E_202x273_Orient_Aviation_USD_20171002_01.indd 1 18.09.17 14:10 INDUSTRY INSIGHT SPECIAL REPORT THE DIGITAL CHALLENGE FOR ASIA-PACIFIC MROs Digtal era demands smarter, faster MRO Airline maintenance, repair and overhaul (MRO) is no longer a business of grease and toil. The hangar of the future will be abuzz with drones identifying MRO work minutes after a plane’s arrival at a facility. Providers who do not offer these sophisticated MRO solutions risk losing business, reports chief correspondent Tom Ballantyne.

-Tapao airport, 140 kilometres southeast of Bangkok, was not born in the digital Uage. Constructed jointly with the U.S. Air Force more than 50 years ago to support military action in the Vietnam War, the huge site languished almost unused for decades until 2014 when the Thai government legally transformed the facility and its adjacent vacant land into a joint civil-military airport. Since then plans for U-Tapeo to be the centerpiece of US$5.7 billion project for MRO designed for the airlines of the 21st century have accelerated. In the world of airline MRO, 35,000 airplanes by 2027. its forecast MRO growth to be and Australia, said in a recent THAI is not alone in planning for In ten years, 58% of 10.1% a year and its market size report that airlines would the digital future of the MRO the global fleet will be new predicted to grow more than demand greater aircraft industry. Across the region, generation aircraft. Commercial 160%, the largest net growth in availability from MROs. airline and independent MROs airline MRO growth is forecast the world. Regulators, too, would enforce are investing hundreds of millions to achieve a compound annual The region’s airline expansion stricter compliance of MRO of dollars in new technologies growth rate (CAGR) of 3.8% brings with it numerous standards. at their facilities and adopting for the next decade, from $75.6 challenges for MRO, which can Present legacy systems or The Cloud and Big Data to billion now to just over $109 only be solved with enhanced IT in-house solutions may not be fundamentally restructure MRO billion a year in 2027. The major implementation in the hangar. fit-for-purpose to manage growth fleet management. They are growth engine for MRO in these Statistics reveal maintenance while the cost of maintaining installing systems that predict the years will be Asia, especially delays and unexpected downtime these systems may be cost time of parts replacement and China and India where the region costs the airline industry an prohibitive, the company said. using robots to carry out repairs. will almost double its in-service estimated $8 billion a year. Another software provider, In the Oliver Wyman 2017- fleet and related MRO business. RUSADA, a U.S.-based Ottowa-based Mxi Technologies, 2027 Fleet & MRO Forecast, the Asia-Pacific MRO will expand aviation maintenance and said: “In this atmosphere of authors said the world’s in-service at a healthy 4.4% annually. China engineering software company change and evolution, Cloud commercial airline fleet will be will be the standout market with with offices in India, Singapore computing represents a

28 / ORIENT AVIATION / OCTOBER 2017 significant technology that has construction materials of carbon with health monitoring systems, MRO sector, particularly the the potential to transform the fiber composites, hybrid alloys, designed to recognize pending smaller ones. world of aviation MRO. and special coatings as well system or component failures. The Oliver Wyman forecast Industry insiders point as new data collection and This ‘Big Data’ capture and cautioned that advanced analytics out that today’s components measurement tools for advanced processing will require a clear and game-changing technologies are precision crafted to prognostication capability. strategy to take full advantage of remain elusive for many in the tight tolerances, using high Properly harnessed, the its potential. aftermarket, with only 20% of performance materials and capability for maintenance In this new era, component respondents to a survey seeing additive manufacturing organizations to take action MROs must have the capital to a material impact from these techniques. These components before a component fails invest in testing equipment and technologies on their businesses. not only require rapid and exact promises to improve reliability licenses to access OEM manuals “Participating executives inspection results to maintain safe and reduce costs. The challenge and data for new parts. Line described their industry as and reliable aircraft operations, is that there are not yet proven maintenance providers will constrained by old IT systems they demand new methods of systems to accept and analyze experience challenges in training (62%) that lack functionality inspection. the data for proactive decision- and use of the new aircraft and flexibility and are often The top three advancements making, the company said. health monitoring systems, fault not compliant with changing in the industry are three- “From an airframe MRO isolation systems and software regulations.” Given the looming dimensional (3-D) computed perspective, providers must configuration protocols. labor shortage and failure to topography (CT), new visual be able to handle the new In another segment of upgrade technology, Oliver inspection bore scopes and composite and metal matrix the market, it is universally Wyman sees the prospect for connected mobile, user-interfaces materials dominant in the agreed that OEMs will continue rising maintenance costs and that appeal to the next newest-generation aircraft, to increase their share of the an increase in turnaround times generation of industry inspectors. such as the B787 and A350. The aftermarket using shrewd (TAT) for scheduled maintenance Aircraft designed and built newer technology includes much strategies that have proved ahead. In response, airlines after 2000 require technology more sophisticated avionics and successful to date. It is a shift are likely to retain more spare that accommodates the new systems that are able to interface that squeezes the independent aircraft as a backup for potential Advertisement Department of State Development Queensland is the Asia-Pacifc’s premier aerospace and MRO destination

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OCTOBER 2017 / ORIENT AVIATION / 29 INDUSTRY INSIGHT SPECIAL REPORT THE DIGITAL CHALLENGE FOR ASIA-PACIFIC MROs

servicing delays. needs. Notwithstanding the The Oliver Wyman forecast potential, capturing market share Lion Air MRO highlighted another trend. will not be simple,” it said. “Airlines around the world “Even when labor rate are sending nearly 30% of parity is reached, Asian MROs undercuts rivals wide body heavy airframe have demonstrated the capacity maintenance work to the Asia and skills to secure long-term Preparing for growth. That is the task Pacific. There will be an inflection contracts. While MROs in point when capacity growth developing regions have wide- ahead for Southeast Asia’s MROs as the within Asia cannot keep pace body capability, investment in region’s airlines rapidly increase their with the MRO demand of its facilities, equipment, tooling and demands for local maintenance services. own countries and also foreign training is essential. Paying the To win business, Lion Air MRO intends airlines. Operators will have to cost of capital for expansion will look elsewhere for their MRO be necessary to compete.” to undercut the market when its island facility is tripled in size.

GE explores the benefits of Big Data hen it comes internationally recognized quality to pitching for services to airlines at rates at least At GE’s Digital Investor Day last year, Kevin McAllister, then business, PT 30% cheaper than in Thailand and head of GE’s Aviation Services unit but now running Boeing Commercial Airplanes, said GE has 35,000 engines feeding data Batam Aero 50%-60% lower than Singapore. Technic (BAT), The reason? According to the Predix platform, which GE Aviation moved onto last year. The Wthe MRO subsidiary of Indonesia’s company it benefits from lower data is analyzed and alerts issued if warranted. Predix’s analytics , believes it is on a wages in Indonesia, a lower-cost capabilities have helped increase the number of total alerts and winner. It claims it offers the same operating environment and a decrease the percentage of nuisance alerts, or false positives. McAllister offered real-world examples of the impact analytics are having on the bottom lines of airlines, and by extension GE. One airline had 12 CF34 engines on six regional jets with abnormally Ameco’s GE’s data scientists linked the affected aircraft to short-haul routes with low-cruise altitudes, which lead to higher internal ambitious a great opportunity to get down to actions by individual engine in Another case involved a high-pressure turbine shroud wear global goals when you saw distress like that, you would begin to pull engines Being the biggest airline MRO in China is not good enough for Beijing-based Ameco. It has plans to add capabilities to its portfolio. you know how distress is accumulating by engine, by part, you can hink Big. That’s it was doubling its efforts in the strategy of the modification and retrofit Ameco Beijing as sectors. It has developed a sets out to “fast parallel production line for B757 develop its product passenger-to-freighter conversions Tcompetitiveness and and intends to improve its B787 comprehensive maintenance and Airbus A350 starter generator services in line with its strategy of capabilities. being the leading MRO in global It also is building a landing aviation”, a recent company gear overhaul capability. At statement announced. present, Ameco conducts landing The joint venture MRO said gear MRO for the A320 family, besides developing capabilities A330s, B737NGs and B747-400s. for new generation aircraft, In addition, Ameco will

30 / ORIENT AVIATION / OCTOBER 2017 sufficient supply of qualified be large enough to accommodate Maintenance Facility AeroAsia -900ERs as well as ATR 72-500, personnel, enabling it to appeal to 30 single aisle jets under the one (GMF), a unit of Garuda 72-600 turboprops and DHC-8 non-. roof at the same time. Indonesia, has announced plans aircraft. However, there is a catch. “We do not have any capacity for a US$300 million share It plans to add A320neo, At present, capacity at BAT’s to spare to third-party airlines now, issue to fund an MRO centre, A320ceo, A330 and B737 MAX facility on Batam, in Indonesia’s but we will have some when the also on Batam. GMF, has 170 to its MRO capabilities. When Riau Islands, which is about 20 second hangar is put in place,” he airline customers and is offering the new hangar is completed the kilometres from Singapore and said. BAT believed that when the investors equity of between BAT workforce will increase from can accommodate 12 single-aisle second hangar is opened in 2019, 20%-30% of the share sale. 1,000 to 3,200. The company and four wide-body jets, has its 20% of its capacity will be available President director, Iwan has also been quick to rebut hands full in meeting the MRO for non-Lion customers. Joeniarto, said the sale proceeds any suggestions that winning requirements of the Lion group’s The race to expand MRO will set up Batam facility and allow customers might be difficult combined fleet of more than 260 capacity in Southeast Asia is hardly it to identify partners for its its because of Indonesia’s past poor aircraft. And the queue won’t surprising. Last month Boeing expansion in Dubai, Australia and safety reputation. get any smaller with the planned forecast, in its latest Southeast Asia East Asia. “Our aim is to grow It said that in July, the delivery of 226 more aircraft to Current Market Outlook (CMO). this company at the pace of 20% three-year-old Batam facility Lion Air and its subsidiaries in the there would be demand for 4,210 to 21% over the next five years. passed a safety and security next five years. new planes worth $650 billion At present, 65% of our revenue audit by the U.S. Federal Aviation But there will be space for in Southeast Asia in the next 20 comes from Garuda and the rest Administration (FAA). It has also other airlines, said BAT production years. It predicted the region would from other airlines. In five years been certified by the civil aviation manager Riki Supriadi Suparman. A continue its strong annual traffic that ratio will be reversed,” said authorities of Indonesia, Malaysia new hangar will increase the MRO growth of 6.2%, which outpaced Joeniarto. and Thailand and is capable of from 40,000 square metres to the world average of 1.5%. BAT offers MRO for B737-300, providing heavy maintenance 120,000 square metres, which will Jakarta’s PT Garuda -400, -500, -600, -700, -800 and work, including C and D checks.

employees, Ameco Beijing (Aircraft “Up to now, four international Maintenance and Engineering customers have selected Ameco Corporation) is the biggest for maintenance service on their provider of technical support Dreamliner aircraft in China. services for aircraft in China. Ameco started line maintenance Founded in 1989, it is a joint and releasing services for Air venture between Air China (75%) China’s B787 fleet from May and Lufthansa Technik (25%). It last year. We also started A350 specializes in the maintenance, maintenance service from repair and overhaul of aircraft, November 2015 when we offered their engines and components. our first A350XWB releasing As well as Air China, service for Finnair in Shanghai.” customers include more than Ameco also overhauls establish a component workshop, In the last 12 months, Ameco 30 Chinese airlines and 40 and repairs 20,000 aircraft that will build on its centre for has added customers for its international airlines. The company components, including landing thrust reverser repairs on the IAE airframe services from airlines in is building parallel production gear, tires and brakes, hydraulic, V2500-V5, CFM International Germany, Czech Republic, Russia, lines for passenger-to-freighter pneumatic and mechanical CFM56-5B, CFM56-3, CFM56-7B, Turkey, Iraq and Hong Kong, conversions on B757s. components and avionics and and Rolls-Royce Trent 700 engines. It said work from international In its engine overhaul business, electrical systems. To cater for the growing VIP airlines was leading to “fast Ameco said it was following the At Beijing Capital market, Ameco intended to open growth”, especially at its 10 line market trend of cooperating International Airport it operates a workshop to meet completion maintenance stations across China. with the engine makers and has two four-bay hangars, capable of demands for wide body aircraft. In “Ameco is dedicating itself to signed with several airlines for the accommodating four A380s at January, it completed China’s first meeting customers’ maintenance servicing and repair of PW4000 the one time. It also has a one bay C-check on an A319 business jet needs and promoting brand image and RB211 engines. hangar for B747 overhaulo and and is now seeking approvals from through the comprehensive and The MRO will build up painting. At Chengdu Shuangliu other airworthiness authorities for one-stop maintenance services,” its B787 and A350 generator International Airport, Ameco has market expansion. Ameco has the Ameco’s executive vice president capabilities to expand its Power a B757 three-bay hangar and capability to carry out completions and chief marketing officer, Zhu by the Hour (PBH) services. It has an A321 three-bay hangar for on the business jet variants of the Xiao, said. been providing B787 maintenance checks and heavy maintenance A330, the B737 and the B747. With more than 11,000 services since 2014. services.

OCTOBER 2017 / ORIENT AVIATION / 31 SA18_Visitor01_OrientAviation_202x273mm.pdf 1 10/8/2017 10:47:40 AM INDUSTRY ADDENDUM

Jin Air agrees chosen Phitek is further proof of with GMF for many years and we the quality of our smarter cabin are happy to extend this strong passenger service products and their success in partnership.” agreement with IBS creating the ultimate inflight In 2016, the two parties experience.” signed a Memorandum of South Korea’s Jin Air has signed Understanding (MoU) to establish an agreement with aviation IT MRO cooperation and in 2017 provider, IBS, to develop a next AFI KLM E&M a second MoU was agreed generation passenger service consolidate alliance to extend the partnership by system, the IFly Res passenger establishing an exchange program services system. Jin Air president with Indonesia’s GMF for their expert teams. and CEO, Choi Jeong-ho, said AeroAsia the IBS solution is expected to increase the airline’s reservation, AFI KLM E&M and Garuda Siemens and ticketing and transportation, Mobil Jet Oil 387 is well suited Maintenance Facility AeroAsia Singapore to expand online sales and to protect the advanced have signed a Letter of strengthen customer service gearboxes used in PW1100G-JM Understanding to upgrade their drive digital standards. IBS clients include andPW1400G-JM engines from longstanding relationship to a transformation Qantas Airways, British Airways demanding operating conditions,” strategic alliance that will develop and Lufthansa. ExxonMobil global aviation multi segment products that Global technology powerhouse, lubricants sales manager, Vipin will deliver high valued added Siemens, and the Association Rana, said. maintenance solutions to the of Aerospace Industries market. (Singapore), or AAIS, recently President and CEO of signed a Memorandum of ATR and Phitek GMF AeroAsia, Iwan Joeniarto, Cooperation to advance the sign deal for said: “With more than 75 digital transformation of the Lion years of experience in aircraft state’s aerospace industry. IFE streaming maintenance and its reputation Siemens ASEAN executive technology as one of the top two MROs in vice president for digital factory the world we believe that AFI and process industries and ATR and New Zealand aircraft KLM E&M is an excellent partner drives, Raimund Klein, and technology supplier, Phitek, have to enhance GMF’s reputation AAIS vice president, Allan signed a deal that will offer ATR worldwide.” Ferrie, agreed on behalf of their operators the option of installing The alliance between GMF organisations to educate AAIS Phitek’s standalone wireless and AFI KLM E&M is one of GMF’s members about digitilisation, Mobil Jet Oil 387 IFE system on their airplanes. organic initiatives to accelerate its encourage the implementation Available from June next year, the goal of becoming one of the top of technologies and equip approved for Pratt & flexible system can be installed or ten MROs in the world, Iwan said. the industry sector with the Whitney engines removed as required and either KLM E&M executive vice knowledge to embrace change. fitted on new aircraft or retrofitted president, Ton Dortmans said: “We are very excited to Global engine maker Pratt & on existing planes. “We have been successful embark on this partnership Whitney has approved the use ATR senior vice president implementing the exchange of journey with AAIS. We look of Mobil Jet Oil 387, a synthetic programs and support, knowledge and workmanship forward to working closely High Performance Capability Tom Anderson, said” “ATR is with the organization to raise turbine engine oil for use on its constantly striving to improve the standards of Singapore’s PurePower PW1100G-JM and the inflight experience we offer aerospace industry,” Klein said. PW1400G-JM turbofan engines. to ATR operators and their Said AAIS’ Ferrie: “We Since its introduction in late passengers. The IFE streaming are very pleased to partner 20-12, Mobil Jet Oil 387 has allows passengers more ways to with Siemens in this digital accumulated almost one million enjoy their flight while providing transformation initiative. Our hours of on-wing performance. It operators with additional revenue aim is to facilitate Singapore’s is used to protect more than 250 potential.” aerospace industry in adopting aircraft at airlines worldwide. Phitek marketing director, digitalization. Companies are at “With its exceptional load Chris van der Loo, said: “We different stages of understanding carrying capabilities and ability are delighted to supply ATR with and reaping the benefits of it. This to maintain film thickness our innovative WiFi streaming initiative will help bring us to the between moving components, products. The fact that ATR has next level.”

OCTOBER 2017 / ORIENT AVIATION / 33 INDUSTRY ADDENDUM

Budget Jeju PEOPLE BRIEFLY… Air adopts New dnata boss appointed in Singapore SITAONAIR AIRCOM Hong Kong Airport Authority FlightTracker Global air services provider, dnata, has moved up its (HKAA) is planning to offer retail Singapore’s chief commercial officer, Nick Moore, to CEO bonds of up to US$648 million as Jeju Air has become South of operations in the Lion City. Moore led Jardine Aviation part of the airport operator’s plans Korea’s first budget airline to Services in Hong Kong and was a board member of several to raise $18.33 billion to fund the adopt SITAONAIR AIRCOM of the group’s subsidiaries before he moved to dnata in building of its third runway. No FlightTracker, a system that Dubai in 2008. After his success as senior vice president taxpayer money is involved in the will make the carrier’s 29 services with the group, he transferred to Singapore project, which commenced last B737s compliant with the new earlier this year. He will take up his new position with month. Additional funds for the International Civil Aviation immediate effect. new runway would be drawn from Organisation’s (ICAO) flight dnata acquired ground handler Changi International the HKAA’s operating surplus, a tracking regulations that will Airport Services, in 2004 and rebranded the company passenger levy, bank loans and come into effect next year. as dnata in 2011. It employs 1800 staff and services 40 bonds purchased by institutional The upgrade also will international airlines at Changi international airport. investors. include the installation of SITAONAIR FlightMessenger COMMUNICATIONS The Zhenjiang Science and on the Jeju Air fleet; a Technology investment company communications system that Inmarsat’s SwiftBroadband Safety and (ZTC) has invested US$73.5 million translates cockpit data and to take control of the UK aircraft feeds it directly into an aircraft’s FLYHT conduct trials economy seat manufacturer, existing IT infrastructure. Acro Aircraft Seating. The parent Jeju Air director of Global provider of mobile satellite communications, company of ZTC is Shanghai listed operations control centre, Inmarsat, will demonstrate its advanced SwiftBroadband Zhejiang Tiancheng Controls Kim Sanghoon, said the Safety (SB-S) solution in a flight trial with Canada’s FLYHT Co., which produces seats for airline selected SITAONAIR later this year. construction vehicles, trucks and AIRCOM FlightTracker and Real-time aircraft intelligence and cockpit communications passenger cars. FlightMessenger because company, FLYHT, and Inmarsat will test their systems of real “they appealed to us for their time aircraft diagnostics, performance monitoring, detection SITAONAIR has equipped rich functionality, seamless of exceedence-critical parameters and improved operational Singapore Airlines (SIA) with integration with our airline efficiency. its full suite of high speed systems, their user friendliness “In addition, we will demonstrate how our currently connectivity-enabled services for and top quality customer available technologies can provide the industry with cost the cabin including the availability support”. effective solutions to emerging safety requirements such of GX Aviation’s high speed SITAONAIR vice as the International Civil Aviation Organisation’s (ICAO) broadband connectivity that is on president Asia-Pacific, Katrina imminent new requirements for aircraft flight tracking,” one of SIA’s B777-300ERs. Korzenowski, said: “Today’s Inmarsat vice president of aviation safety and operational airlines face a number of services, Captain Mary McMillan. Last month SITAONAIR also practical challenges in tracking FLYHT CEO Tom Schultz said it was a great opportunity agreed with Philippine Airlines their aircraft, which we at For FLYHT to work directly with Inmarsat. “FLYHT brings (PAL) to upgrade the carrier’s SITAONAIR have made our significant expertise [to the flight trial] in the areas of onboard WiFi and crew mission to empower them to Autonomous Distress Tracking and the Timely Recovery communications on its B777s overcome.” of Flight Data. We look forward to testing out solution with and on its ordered A350s and Inmarsat and other trials partners, Schultz said. new A32111s. SB-S is in use on Shenzhen Airlines, Hawaiian Airlines and and has been selected by Airbus as the Sabre Corporation has unveiled Light Cockpit Satcom Solution for its A320 and A330 aircraft plans to launch its Sabre Content Separately, Inmarsat has signed a strategic agreement Services for Lodging in 2018, with aviation and high integrity solutions company, a platform that will integrate Rockwell Collins, for global distribution of its next content including Sabre global generation SB-S solution. Airbus recently named Rockwell distribution system and non-GDS Collins the top supplier for systems and equipment cabin sources such as aggregators, and propulsion at the Airbus supplier conference awards re-distributors and agency dinner in Tianjin last month. This is the second time the sourced content. company has received the award.

34 / ORIENT AVIATION / OCTOBER 2017 Singapore • Oct 31-Nov 2, 2017 SINGAPORE EXPO CONVENTION AND EXHIBITION CENTRE

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