Vol. 27 No. 8 October 2020 orientaviation.com

NO BACKING DOWN

Industry steadfast in commitment to 50% cut in emissions by 2050

SIA pilots volunteer Cargo’s biggest challenge: Premium start-up deeper pay cuts to distributing anti-virus taps ’s taste save jobs vaccine worldwide for grander EVERY EXPERIENCE SHOULD BE EFFORTLESS.

THAT’S WHY WE INTEGRATE OPERATIONAL SOLUTIONS TO BOOST AIRPORT PERFORMANCE.

From improving safety and customer service, to lowering costs and using infrastructure more effi ciently – as a modern airport operator you are challenged in all these areas – and more. To reach your full potential, you need a partner with the experience of transforming airport performance.

Working with ADB SAFEGATE, you can tackle each challenge with confi dence. We have the experience and solutions to help you cut lighting costs and power consumption, make better use of and capacity, shorten taxi and turnaround times and provide the safest and most effi cient routes from runway to gate. Want to be the best? Work with the best – ADB SAFEGATE. www.adbsafegate.com CONTENTS Volume 27, Issue 8

MAIN STORY

14

ORIENT AVIATION MEDIA GROUP 17/F Hang Wai Commercial Building, 231-233 Queen’s Road East, Wanchai, Hong Kong Editorial (852) 2865 1013 E-mail: [email protected] NO Website: www.orientaviation.com BACKING Publisher & Editor-in-Chief Christine McGee DOWN E-mail: [email protected]

Associate Editor & Industry steadfast in Chief Correspondent Tom Ballantyne commitment to 50% cut Tel: (612) 9638 6895 in emissions by 2050 Fax: (612) 9684 2776 E-mail: [email protected]

North Asia Correspondent Geoffrey Tudor COMMENT 11 Aircraft lease rollovers grinding to halt in Tel: (813) 3373 8368 5 We hear you on climate change says industry paralysed market E-mail: [email protected] 12 and Indonesia: Southeast Asia’s next Photographers ADDENDUM aviation powerhouses Rob Finlayson, Graham Uden, 6 Youthful full-service Starlux tapping Taiwan’s 13 Vietnam’s privately owned full-service Bamboo Ryan Peters desire for grand flying Airways adds Embraer jets to its fleet

Chief Designer Chan Ping Kwan

Printing Printing Station(2008)

ADMINISTRATION

General Manager Shirley Ho 6 AirAsia Group to cash in big from expected sale E-mail: [email protected] of 49% AirAsia India holding INDUSTRY ADDENDUM 7 Group adopts clean sheet 18 STELIA Aerospace unveils single aisle business ADVERTISING approach to post COVID-19 structure class seat 7 Every penny counts Asia-Pacific, Europe & Middle East Defne Alpay Tel: +44 7712 829859 NEWS BACKGROUNDERS E-mail: [email protected] 8 Indian aviation falling short in nurturing local leadership talent The Americas / Canada 10 Distributing COVID-19 vaccine air cargo’s Barnes Media Associates “greatest challenge” says IATA Ray Barnes Tel: +1 434 770 4108 Fax: +1 434 927 5101 E-mail: [email protected] [email protected] 18 AMECO to be China’s first Pratt & Whitney EngineWise GTF engine MRO provider 18 India’s Air Works wins Marketing Campaign of Download our 2020 media planner at: 2020 at MRO Asia-Pacific orientaviation.com/advertising 18 Jennifer Cato announced as Travelport’s new Follow us on Twitter @orientaviation 11 SIA pilots offer deeper salary cuts to save jobs of chief marketing officer and a member of the cockpit colleagues company’s Senior Leadership Team

OCTOBER 2020 / ORIENT AVIATION / 3 C42166.002-Embraer-DifferentAnimal-OrientAviation-Oct20-273x202-v1.indd 1 06/10/2020 17:09 COMMENT

We hear you on emissions, industry says

Aviation’s contribution to global warming has long been warned last month, ultimately the climate crisis will “dwarf” subject to controversy with a primary target of the impact of the pandemic. There may be a horrendous environmentalists. This situation has persisted despite number of coronavirus fatalities, frustrating lockdowns the fact aviation is the only global industry with ambitious and international border closures, but people increasingly targets for reducing emissions and achieving long-term are worried about the effects of global warming even in sustainability. pandemic times. COVID-19’s ruinous financial impact on A Globescan poll recently conducted across 27 countries operations, bringing international flying in particular to a showed 90% of people regarded climate change as a very virtual standstill, presents a good reason for carriers to put serious or somewhat serious problem and that these beliefs their environmental obligations aside as they struggle to had strengthened in the last few years. survive. But this has not happened. There is absolutely no doubt there is an increase in The Air Transport Action Group’s (ATAG) 2020 Global extreme weather events and temperature changes on every Sustainable Aviation Forum - Green Recovery, an online continent in the world. This situation alone is sufficient reason conference held at the turn of the month, was proof of for airlines and the industry in general to maintain their focus aviation’s commitment to emissions reductions. The summit on working to reduce the impact of emissions from aviation. brought together leaders from all sectors of aviation. They Scores of thousands of jobs are disappearing at discussed critical environmental issues related to the airlines and across the spectrum of their suppliers, but sustainability of the industry and its green recovery post the when the pandemic passes and growth returns to some pandemic. form of predictability, whether that will be in 2024, as the Airlines, aircraft and engine manufacturers, International Air Transport Association is forecasting, or and suppliers are recommitting to their sustainability goals beyond, the challenge of mitigating climate damage from despite the immense pressure of surviving the COVID-19 aviation will not have gone away. In fact, it will have become crisis. more important as aviation’s target of a 50% reduction in Present times may be bad, but as Britain’s Prince Charles emissions, against 2005 levels, draws ever closer. ■

TOM BALLANTYNE Associate editor and chief correspondent Orient Aviation Media Group

A trusted source of Asia-Pacific news and analysis

ORIENT AVIATION ORIENT AVIATION CHINA

OCTOBER 2020 / ORIENT AVIATION / 5 ADDENDUM AIRLINES AIRPORTS PEOPLE

Starlux Airlines tapping Taiwan’s desire for grand flying

By Tomasz Sniedziewski in Taiwan conditions, Starlux remains billion. Its target is NT$30 billion, positive about its outlook. In said airline spokesman, Nieh Kuo- When Starlux Airlines, Taiwan’s to , and Da September it announced the wei, who declined to offer more newest carrier, launched flights on Nang were put on indefinite hold leasing of eight A330-900neo, details about the airline’s strategy. January 23 this year and thereby in March. making it the first Taiwanese The massage of the message is establishing a third force in the By last month, the carrier’s carrier to fly the type. Deliveries Starlux’s funding is solid. skies of Taiwan, its first challenge website said routes to Penang and will start from the fourth quarter of Unlike its rivals in Taiwan, was battling the hardship of the were being operated but next year. Starlux has not entered the COVID-19 pandemic and not, Taipei-Cebu was canceled until the Starlux’s order book is now 10 domestic or cargo sectors. It is as expected, wooing skeptical end of March 2021. A350-900s, nine A350-1000s and using the hiatus created by the customers. In the first half of 2020, Starlux a commitment to three additional pandemic to reinforce its brand, Of the three initial Starlux lost NT$1.31 billion (US$44.8 A321neos over its previous order which has established very strong destinations out of Taipei, the million), only NT$1 million or of 10 of the type. Following the recognition in Taiwan. carrier had to suspend its service US$35,000 less than China recent signings, Starlux will have When the airline decided to the Special Administrative Airlines. To June 30, the full- 39 aircraft by 2024. to participate in pseudo trips Region of Macau less than two service carrier had accumulated Starlux said the A350 will join abroad – flights to nowhere – one weeks after the inaugural cross losses of NT$2.81 billion. its fleet at the beginning of 2022, flight sold out in just 30 seconds, straits flight. In quick succession, Despite the adverse market which will be slightly later than according to media reports. originally planned, and that the Top of the class positioning planes will be equipped with first convinced Samsung to partner class, a decision going against the with Starlux in the launch of its trend at many Asia-Pacific carriers. latest flagship smart phone in Longer term, it has the U.S. in its Taiwan. sights for its long-haul fleet. “Why shouldn’t we be able to The increase in scale of its hold out?” asked Starlux Airlines operations will put Starlux on par chairman, Chang Kuo-wei, with funds hungry in a profile in the widely read and EVA Air. From early 2021, CommonWealth magazine. The Starlux will continue with building positive buzz around the brand on its current capital of NT$8.36 seems to fuel his optimism. ■

AirAsia Group to score big from AirAsia India exit

By Anjuli Bhargava Malaysian LCC group invested Tata was sold on the idea. management style of the Malaysia $14 million-$15 million to launch Citing another AirAsia joint headquartered LCC group. AirAsia Group co-founder, Tony the carrier, along with partner, success, he painted a picture of “The blame for the venture Fernandes, is jockeying bids Tata, seven years ago. instant prosperity when seeking going awry lies far more with between joint venture AirAsia At press time, it was reported board approval for the deal. Fernandes and Co who tried India (AAI) majority partner, the Tata had first right of refusal Until the news broke that and failed to micro-manage Tata Group, and fund investors to decline to buy the AAB Fernandes had an offer of $54 the company from Malaysia,” a as he negotiates the sale of his shareholding in the LCC. If it million from the offshore fund, source told this reporter. company’s share of the LCC, declines, the foreign fund will be he was expected to sell his He added Tata was “left India’s Business Standard has the LCC’s replacement investor, holding in AAI to Tata, which took holding the can” and was in the reported. the Business Standard said. management control of the group unenviable position “of putting an Malaysia’s AirAsia Berhad In 2012-2013, master in November last year. unruly house in order”. Whether (AAB) owns 49% of AAI and it salesman Tony Fernandes sold a Tata sources have assessed these are Tata’s tactics to lower has been written the company billion dollar dream to Tata Group the current valuation of the 49% the final price to be paid for the has been offered US$54 million chairman, Ratan Tata. Setting up Fernandes holds in the LCC at exit of Fernandes is anybody’s by a private fund for acquisition a joint venture LCC in India, he beyond US$50 million. guess, but more than one source of its minority holding. The offer told the leader of India’s most In India’s difficult political has told Orient Aviation this includes the potential suitor’s enduring conglomerate, would and economic environment, marriage is headed for divorce, willingness to take on short-term bring both of them new riches Fernandes has attracted some a situation made clear by the expensive loans from banks and with its asset light model in such a antipathy in regulatory and latest offer for AAB’s holding in Tata Capital. It is believed the huge, potentially, airline market. industry circles because of the Bangalore-headquartered AAI. ■

6 / ORIENT AVIATION / OCTOBER 2020 ADDENDUM

Cathay Pacific Group adopts clean sheet strategy for shaping new structure

At press time, with pilot union an interim loss of HK$9.9 billion was announced, Tang told media leaders metaphorically banging (US$1.28 billion), the biggest in its the airline group had approached on senior management’s door history and a result of COVID-19, the government for assistance. demanding a place at the airline Cathay Pacific Group chairman, The prestigious airline group’s restructuring table, Patrick Healy, said. company is not alone among the lead Hong Kong airline The airline group had top tier carriers in the region group continued it’s softly, undertaken an earlier three- being forced to make redundant softly campaign of managing year transformation, advised thousands of employees due to the public’s expectations of by the McKinsey management the capacity rout brought on by inevitable job losses from the present the future size and shape consultancy. It reduced the the pandemic. Hong Kong icon’s root and branch of the company to the board in airline’s home city headcount by In September Singapore restructuring. the current quarter,” Hazelton 600 and preceded lay-offs at its Airlines Group CEO, Goh Choon In an early October note wrote to HKAOA members in a outports. Phong, announced 4,300 jobs to members of the Hong Kong memo circulated widely at the The Cathay group employs had to go at the flag carrier. He Officers Association, airline group. more than 20,000 staff worldwide. said 1,900 jobs had disappeared chairman Tad Hazelton said In the meantime, the group’s of the company’s through natural attrition, vacant Cathay Pacific’s director of CEO, Augustus Tang, told Hong airlines are running at about a jobs not filled and voluntary flight operations had told him Kong’s South China Morning 1,000 a day. Earlier this year, the retirements. These staff reductions there was no firm date for Post that smaller aircraft could group was a recipient, along with were not enough to avoid the any announcement about the be in play in its future fleet and most major companies in Hong elimination of another 2,400 restructuring of the company that a review of the size of its Kong, of government backed positions at the group, he said. “as details were continually offering was part of salary support and a package of (See page 10. SIA pilots offer changing”. restructuring discussions. loans that it must be repaid in five deeper salary cuts to save “Management still aims to In August the group reported years. At the time the relief deal cockpit jobs) ■

Every penny counts

Some clever clogs at did were offered for sale online. Fully their bit for the environment and kitted out with F&B and offering the coffers of the group when the options of amenity kits, they came up with the idea of Qantas biz class PJs and a throw selling off the carts of produced exclusively for Qantas, the airline’s nostalgia laden 747 half bar carts were advertised at fleet. With the news the beloved $691 or 169,000 Qantas Points aircraft of millions of passengers and full size carts were $1045. was destined for six feet under Overwhelmed by the response, in the airline cemeteries of the all the carts sold in two hours. world or be broken up for parts, Airlines across the region 1,000 of the fleet’s galley carts experiencing similar difficulties in making money as the Australian headquartered airline are proving piloting an A380, a 777-300ER, of experiences that includes to be just as innovative when it B747-400 or B737-400 in the Restaurant A380 @Changi, a comes to earning cash. Several comfort of a simulator suite. dining experience with SIA’s airlines are operating “flights Prices start at $381 for two award winning service inside to nowhere” to keep some of people for a 30-minute session. an SIA A380. In November, an their pilots busy and to earn The -based carrier also exclusive behind-the-scenes money, while an enterprising has opened a restaurant at its tour of SIA training facilities will few are putting some of their headquarters in the city where be on offer, where children can on-ground assets to financial use. diners can eat in a space that dress up and role play as cabin (THAI) is offering replicates an airplane cabin. attendants. Adults can choose a “THAI Simulator Experience” also to operate a full flight simulator, for customers to “fly” an aircraft is thinking outside the box. sample some of the carrier’s in their flight simulators, which It has launched the Discover premium in-flight wine labels and includes the experience of Your Singapore Airlines suite attend a grooming workshop. ■

OCTOBER 2020 / ORIENT AVIATION / 7 NEWS BACKGROUNDER

its start-up days in 2013-2014. Lumba even made a trip to Indian aviation falls , but declined an offer from the Malaysian LCC. More recently, despite being short in nurturing local past retirement age, IndiGo has brought him back to head its ATR and UDAN operations, an leadership talent appointment jeopardised by India’s Ministry of ’s Tiny CEO cabal ride merry-go-round at the top of India’s airlines. (MOCA interference. Lumba had a long career at Indian Airlines then set up flight operations for IndiGo and was a member of the By Anjuli Bhargava LCC’s start-up team. More recently, when Jet Airways pulled downed its shutters in 2019, the airline’s CEO, Vinay Dube, was approached by at least two airlines - SpiceJet and GoAir - to run the carriers. Dube, new to India, had built a name for himself in his short stint with Jet. Many of his colleagues acknowledged his thorough ndia’s aviation sector has than moving to it. churn within IndiGo began to understanding of the airline been plagued with an acute Therefore, it was not a take its toll on staff, the airline’s business. However, unable to management talent shortage surprise to IndiGo insiders and then chief commercial officer, move cities for personal reasons, from the word go and it is the industry in general that Sanjay Kumar, who had more Dube chose GoAir over SpiceJet showing no signs improving. Bhatia sought to convince Rono than a decade with the airline, despite the former’s not so I In early 2018, when the Datta, an Indian by birth, to decided to move on. He too happy reputation in handling founder of LCC IndiGo, Rahul come on board at the LCC. had three airlines chasing him. employees. Dube left GoAir in Bhatia, was scouting for a CEO Datta has had vast management GoAir approached Kumar to August. to succeed Aditya Ghosh, then experience at airlines in the join it as did SpiceJet, where he While the above instances president and CEO of India’s U.S. and has a reputation had worked earlier in his career. highlight the acute shortage of largest airline by numbers, he for rescuing carriers from AirAsia India, a joint venture talent the sector faces at top was not exactly overwhelmed bankruptcy. between Tata Group and the management , the sector with candidates. In India, no Datta’s children were AirAsia Group, was Kumar’s also has suffered and continues matter the airline looked at, the grown and India was a known choice, no doubt influenced by to suffer from an acute lack CEO either had been imported animal to him. He had spent Tata’s controlling interest in the of management talent, or as - Vistara, AirAsia India, GoAir four years at Sahara Airlines, LCC. some industry professionals and Jet Airways being cases in from 2004-2008, before it was He came on board at AirAsia say a “love and obsession point - or was run directly by sold to Jet Airways. He had the India as chief operating officer for all things foreign”. While their promoters/investors. The required expertise even if he was in November 2018 at almost the technical expertise – pilots, obvious example of the latter is seen more as a full service airline same time the airline named engineers and technicians – is in SpiceJet. man than one with expertise Sunil Bhaskaran as CEO. Kumar, plentiful supply in India, it is the So convincing a qualified in low-fare carriers. Only a few who had better knowledge of management cadre where many potential CEO to relocate may know Datta also had been the sector than his boss, did not feel there is a vacuum. to India’s capital city, Delhi, a choice for Bhatia in 2004. last long for a variety of reasons A former aviation secretary labelled as one of most polluted When Datta visited India in and returned to IndiGo as chief has said India could do with “one cities in the world, was not 2003, founders of three of the of strategy and revenue. less airline and one more airline easy. Increasing numbers of country’s airlines, Naresh Goyal, Shakti Lumba, now 71, and management school” to help the expatriates were looking to leave Subroto Roy and Rahul Bhatia, an industry veteran respected sector develop and prevent the the city, concerned about the approached him to join them. for flight operations and endless cycle of airlines going impact of air pollution on the He chose Air Sahara. management expertise, had bankrupt in India. Although health of their children, rather In late 2018, when the been targeted by AirAsia India in people tend to think only of

8 / ORIENT AVIATION / OCTOBER 2020 NEWS BACKGROUNDER

Kingfisher Airlines and now Jet leaders have developed at CEOs – the latest in a long line in the U.S., was a former CEO Airways [as failed], the country’s IndiGo. But it suffers too because was Cornelis Vreeswijk. In 2019, and chairman of US Airways. aviation history, he pointed out, most of the newbies use the after Jet Airways was grounded, This arrangement has led to is populated with failures almost airline to poach staff for their Vinay Dube moved to the top considerable discontent within from the word go. own teams. job at GoAir, but its owner, Jeh the airline and among its Indian Wadia, has replaced him with employees who often feel they THE PUBLIC A LOVE OF ALL Kaushik Khona. The airline is have to report to “retired expats SECTOR LEGACY THINGS FOREIGN struggling to retain key staff and way past their shelf lives and One of the reasons the industry Not everyone agrees local airline has had more than 13 human who have little understanding of has been short of talent is talent is in short supply. They resource directors in as many the Indian situation and reality”. India’s aviation sector has been argue instead that Indian airline years. Many senior employees have vested entirely in the public founders have been obsessed “The inability of the airline’s taken exception to the fact that sector. Chairman and managing by the white man, a legacy promoters to work consistently as the airline grew more expats directors (CMD) of and of India’s colonial past. “The with senior professionals has were brought in to supposedly Indian Airlines typically have assumption is someone who been seen time and again”, said manage affairs but in fact they been government officials and comes from overseas with some a former CEO of the carrier. ended up making a “hash” have tenure at best of five years global experience necessarily Most aviation industry personnel of things. The subsequent at their appointed airlines. knows better”, said a senior who have worked at GoAir have departure of many of the expats “Before the person heading captain with IndiGo, who also said its owners do not trust their confirms their opinions. But even the airline could acquire expertise has worked for Jet and Sahara. own teams. GoAir is seen as a as the industry grapples with its in running it, the incumbent Jet Airways founder, Naresh stop gap arrangement by many biggest crisis in COVID-19 the would change,” said a former Goyal, largely left the reins aviation personnel, especially lack of talent in aviation in India CMD, who grappled with this of power in foreign hands, those who cannot leave Mumbai remains a worry for the industry. and attempted to convince the primarily Nikos Kardassis and due to personal reasons. It is a “chicken and egg” authorities to extend tenures. Wolfgang Prock-Schaeur, who But even at airlines like predicament. Talent at the top This, in his view, is one of the both had long stints as CEOs. IndiGo, the start-up’s CEO is missing because promoters reasons for the inconsistent Goyal turned to Kardassis in was Bruce Ashby, brought in don’t want to hand over control performance of government- all crises, most recently pulling by Rakesh Gangwal. Several to fellow Indians. But unless owned airlines. Even when him in when Tata Group was senior appointees have been the Indians find themselves talented, not everyone is willing in discussions to buy Jet, a deal selected by Gangwal, albeit in positions of authority or to leave a “safe, public sector, that failed to happen. from a distance. Gangwal, leadership, they cannot develop. government paid job” with No matter the airline in who owns approximately 37% It remains to be seen who will several perks to join private India, its owners and investors of IndiGo but lives in Miami blink first. ■ carriers that are perceived as far have hired foreigners to run rockier boats and subject to the them throughout India’s aviation whims of their founders. history. India’s first LCC, Air Rollover of aircraft leases grinding As late as 1994, the Deccan, brought in Warwick to halt in paralysed market government allowed private Brady to run its operations in airlines to operate as scheduled Bengaluru. Similarly, when Global aviation analyst and data provider, IBA, has warned the airlines. In 1993, Damania Vijay Mallya decided to take the commercial aircraft leasing market will experience considerable turmoil in 2021 with more than 1,000 aircraft forecast to be Airways started operations as plunge with Kingfisher Airlines, returned to lessors. In a recent webinar, IBA said approximately an air taxi business. But many he appointed Alex Wilcox, a 1,300 aircraft, including 200 wide-bodies, were scheduled of the early players operated as low-fare airline expert, to launch pre-pandemic to be returned to their lessors. Most of them “one man shows” with very little the airline. Wilcox left Kingfisher expected to then extend their leases. In the era of the coronavirus organisational structure. It was within weeks when he realised that outcome is extremely unlikely as increasing numbers of airlines only when Jet Airways was set Mallya was not interested in are in negotiations to terminate longer leases earlier rather than up in the mid-1990s that some setting up a low-fare product. At lease planes. talent began to develop in the that stage, Mallya hired Sanjay “This uncertainty is set to break the model of recent years of sector outside of Air India and Agarwal, who had done a stint seamless redeliveries between lessees. IBA expected a higher level Indian Airlines. with US Airways and had been of disputes between airlines and lessors around lease returns and redeliveries,” it said. The three airlines have CEO of SpiceJet until the Marans IBA said the decline in aircraft leasing activity would drive a provided the industry with bought the company. Eventually, corresponding fall in engine shop visits. Pre-COVID-19, MRO shop many of its skilled veterans. But Mallya was forced to take business was forecast to increase from 3,200 in 2019 to 4,500 by whenever Indian investors have matters into his own hands. He 2023, aviation intelligence platform, IBA.iQ said. Now they will started airlines, they have looked ran the ship aground himself. reach only 1,000 shop visits this year. It will take until 2026 to outside the country for talent. Mumbai-headquartered achieve previously forecast 2019 levels. More recently, some talented GoAir has only had expat

OCTOBER 2020 / ORIENT AVIATION / 9 NEWS BACKGROUNDER

Distributing a COVID-19 vaccine air cargo industry’s greatest challenge

Dealing with a pandemic is bad enough. Now airlines have been told in no uncertain terms they will face a huge challenge in distributing the COVID-19 vaccine after it is developed. Associate editor and chief correspondent, Tom Ballantyne, reports.

he International Air Transport Association’s global head of cargo, Glyn Hughes, does not mince words when The is describing the importance the airline industry must place on preparing for the distribution of a COVID-19 vaccine to 7.8 billion people worldwide. Just when that will be remains a matter of conjecture, “We know the procedures match shipping needs with the “However, with over 3,500 but if scientists soon produce a well. We need to scale them up infrastructure capabilities of cargo differently sized cargo handling coronavirus vaccine, transporting to the magnitude that will be for pharmaceuticals and also facilities worldwide, until now the it to where it’s needed will be required.” IATA is working with certifications of service providers industry has lacked visibility about one of the greatest challenges air airlines, airports, global health in the value chain. the capacities and services these freight has faced. bodies and pharmaceutical “This is particularly timely facilities offer,” he said. “The The capabilities of the aircraft firms to pull together plans for a amid the COVID-19 crisis when need for greater transparency is itself are not the only problem. distribution program, calling it the shippers of medical supplies and even more critical in the current “The vaccine will have to be industry’s “largest single transport pharmaceuticals need accurate context.” stored at correct temperatures challenge ever”, he said. information for time-and Even with military precision as it moves from the production There are as many as 250 temperature sensitive shipments,” planning, Hughes said flights to source to the airport and then different vaccine programs under explained the airline body. “ONE Africa, Latin America and parts from the aircraft to distribution development, said Hughes, citing Source lists the latest operational of Southeast Asia, which lack centres and onto medical facilities the World Health Organization. information about airlines, vaccine production capabilities, delivering the inoculations,” Governments have invested airports, cargo handling facilities, will be especially challenging. Hughes said. billions of dollars to develop a freight forwarders, ground Developing markets rely vaccine at an accelerated pace handlers, shippers, and trucking almost wholly on cargo carried and eleven possibilities are companies. All critical information in the bellies of understood to be in late-stage contained on ONE Source has planes, many of which remain trials. But while U.S. President been verified by IATA for accuracy. grounded from the COVID-19 Donald Trump has been touting IATA ONE Source is free for all plague. For example, Hughes said, the arrival of a vaccine as early as service providers across the air distributing a vaccine in Africa this month or by November, most cargo supply chain,” IATA said. would be “impossible” now, experts suggested a more realistic Hughes said air cargo has given a lack of capacity combined estimate was mid-2021. been essential in the global fight with the size of the region, its thin IATA has launched ONE against COVID-19, transporting surface transport infrastructure Source, an online platform vital equipment and medicines and the complexities of border to help the air cargo industry to those who need them most. crossings. ■

10 / ORIENT AVIATION / OCTOBER 2020 NEWS BACKGROUNDER

a new generation of pilots will Singapore Airlines have their careers put on hold. SIA has had let go about half of its 400 cadet pilots and cabin pilots offer deeper crew trainees. A spokesman said those who remain will be supported through their training salary cuts to save programmes, but the airline could not keep them after that cockpit jobs due to the “current surplus in staff numbers”. SIA will be open to hiring them should there be Anyone familiar with Singapore Airlines demand for cabin crew or junior (SIA) group CEO, Goh Choon Phong, knows reduction measures.” pilots when returns to cutting 4,300 jobs from the group’s payroll The airline is eliminating pre-Covid levels, the airline said. around 4,300 positions across For Goh, all of this has been was the most difficult task of his career. But SIA, its subsidiaries SilkAir and an emotional experience. “For the catastrophic impact of COVID-19 left him and outports. Some job our impacted colleagues, please with no choice, reports associate editor and reduction targets have been met know this is not a reflection of chief correspondent, Tom Ballantyne. by not filling vacancies, offering a your individual strengths and generous Special Early Retirement capabilities. It is the result of an Scheme (SERS) for ground staff unprecedented travel paralysis and pilots and a Voluntary brought about by a global Release Scheme (VRS) for cabin pandemic. Please also be assured fter the latest tries to avoid mass sackings. So its crew. But another 2,400 jobs we will conduct the process in a round of Singapore announcement last month that have to go. fair and respectful manner and do Airline Group retrenchments were unavoidable In May, the SIA Group our best to ensure you receive all retrenchments because of COVID-19 made clear reported a net loss of US$155.8 necessary support during this very were announced in the challenges the airline group million for the 12 months to trying time,” he told employees in Amid-September, the airline group’s faced. March 31, a reversal from a $502 his message pilots agreed to take deeper cuts In a message sent to million profit a year earlier. In July, Nobody could have predicted in their salaries so more of their more than 17,000 staff in it announced it had lost $538 the devastating impact of cockpit colleagues could remain mid-September, CEO Goh Choon million in January to March, down COVID-19, he said. “Eight months employed, Singapore’s Straits Phong painted a grim picture of from the $149.2 million net profit on, the number of carriers Times has reported. the group’s situation. There had it reported in the same months that have collapsed continues In addition to a cut in their been a “catastrophic” 99.5% a year ago. It was the largest to rise. It is not clear who will Monthly Variable component decline in passenger carriage quarterly loss in the history of the ultimately survive this crisis. From benefit, re-employed captains in the first quarter of fiscal year company. airlines and airports to aircraft and first officers will have their 2020-2021, he said, and the SIA has done its best to manufacturers and suppliers, salaries reduced by 60% and group was operating only 8% soften the blow for departing everyone has taken sweeping 50%, respectively, at SIA and of its capacity compared with employees. Retrenched staff will steps to cut costs – including SilkAir. The new pay rates apply pre-COVID-19 times. continue to receive their salaries drastic measures to reduce staff from October 1 to March 31 “Relative to most other until December 15 and will retain numbers - and prepare for an next year. The group employed major airlines in the world, the their medical coverage and other uncertain future,” he said. approximately 2,600 pilots before SIA Group is in an even more benefits until the same date. “The future remains the pandemic took hold, the vulnerable position,” Goh said. Each affected employee will extremely challenging. The newspaper said. “We do not have a domestic be paid in lieu of the notice period pandemic is not under control, “The company will market which, as demonstrated in their employment contract, with some countries experiencing implement additional pay cuts for in many countries, is the first to which can be up to three months second and third waves. We all remaining pilots at Singapore recover in air traffic. of salary. Those who have been do not have a vaccine and tight Airlines and SilkAir with effect “Given the expectation the in service for two years or more border restrictions remain in from October 1. As a result, this road to recovery will be long will receive one month of pay for place as governments try to limit agreement will help mitigate and fraught with uncertainty every year of service, capped at imported cases. Global economic future job losses for our pilots,” it has come to the point where 25 months. growth remains anaemic, with an airline group spokesman said. we have had to make the Sadly, in an industry that little impetus for the return of Unlike many airlines in times painfully difficult decision of not long ago was fretting about international leisure and business of crisis, Singapore Airlines (SIA) implementing involuntary staff potential cockpit crew shortages, travel.” ■

OCTOBER 2020 / ORIENT AVIATION / 11 NEWS BACKGROUNDER

Southeast Asia’s emerging powerhouses

China and India have long been touted as the growth engines of Asian aviation but two other nations promise to be future powerhouses of the airline industry. After the pandemic, Vietnam will almost certainly be one of the region’s winner.

By associate editor and chief correspondent, Tom Ballantyne

t is no accident Vietnam’s another wave of the virus, in July dominate the market. Flag carrier, a cap of 34% ownership of airline sector is leading the and August, saw services fall (VNA), and low- a domestic airline. Southeast way in recovery from the by around 30%. Nevertheless, cost carrier, VietJet Air, command Asia’s largest budget carrier, the coronavirus pandemic. The General Director of Vietnam a combined 75% market share. AirAsia Group, has made four country’s government acted Airlines, Duong Tri Thanh, has Pacific Airways (formerly Jetstar unsuccessful attempts to add the Iswiftly when the outbreak began said domestic flights in the last Pacific), a wholly-owned VNA nation to its network. Vietnam and despite a recent increase in five months of the year would be subsidiary after Qantas Airways remains the only country in the cases the situation appears to be around 70% of last year, much recently offloaded its 30% region that does not have foreign- under control. higher numbers than most other holding, has another 10%. owned budget airlines operating The result? A study released countries in the region. Newcomer Bamboo Airlines is in its home market. last month by Oxford Economics What the figures indicate, the fourth major airline in the Last month, Vietnam Airlines forecasts Vietnam is expected according to analysts, is when county and VASCO, another VNA and Vietjet resumed international to be the only Southeast Asian restrictions on international travel subsidiary, plays a minor role. flying post the pandemic hiatus economy to report expansion this ease, the Vietnamese aviation Vietnam’s Hanoi-Ho Chi with flights from South Korea. year, with its GDP to rise by 2.3%. sector will be well positioned Minh City is the world’s fourth Vietjet, which is marketing itself The Global Economic Outlook to attract growing numbers of busiest domestic pair in seats as a new age carrier, sweetened report said recovery prospects tourists and foreign investment. offered and the most lucrative its September 30 re-launch of look brightest for Vietnam, which The Vietnamese in-country route in Southeast Seoul- (HCMC) had contained the COVID-19 government’s approach to the Asia. Vietnamese air travel has and Seoul-Hanoi-HCMC from outbreak very effectively until COVID-19 crisis has been steady grown nearly 20% annually for October 7 with a new deluxe recently. Vietnam’s performance and measured. For example, the past five years. In response, ticket class and upgraded stands in stark contrast to the rest Hanoi froze approval of entrant the Transport Ministry plans to benefits for members of its of Southeast Asia, where growth airlines until 2022. Transport spend $15.4 billion to develop 23 Skyboss frequent flyer brand. is predicted to contract by 4.2% Minister, Nguyen Van The, said airports by 2030. Members will be offered business in 2020. supporting existing operators There are high barriers class style services, including Vietnam’s domestic flight must take top priority. There are to entry into the Vietnam air priority check-in and , network had returned to 2019 five commercial airlines operating passenger market for foreign luggage packages and seat levels in recent months until within Vietnam, but two players aviation companies; specifically selection.

12 / ORIENT AVIATION / OCTOBER 2020 NEWS BACKGROUNDER

Vietnam Airlines beat VietJet lack of safety overnight and in re-opening the Seoul-Vietnam Vietnam early responder to airline mismanagement that route by a few days, but the has led to airline losses. It does vibrant LCC, along with young re-opening international flights not, however, detract from full service Bamboo Airways, Vietnam Airlines flew Seoul Incheon to Hanoi’s Noi Bai the potential for growth post- is testing the mettle of the flag with an A350-900 on September 25 after pandemic. carrier both domestically and a six-month hiatus in operating international flights. Passengers Indonesia’s unique regionally. were tested for the COVID-19 virus after they disembarked from geography, with most of the journey. While there remains a great its major cities separated by It was the first international commercial flight to Vietnam since deal of uncertainty about the mountain ranges and seas means the outbreak of the corona virus early this year. impact of the pandemic on Deputy director of the country’s Civil Aviation Administration transportation by land or sea Asia-Pacific airlines, it is assumed of Vietnam, Vo Huy Cuong, said: “this is not only the first inter- can take days and this gives the that recovery will come at some national flight to Vietnam after COVID-19, but also a ‘trial flight’ aviation sector a competitive stage. And if past performance is to evaluate our operational capability to welcome international edge. While there are more than anything to go by, Vietnam will visitors by way of our local industry. 60 scheduled and unscheduled resume its spectacular growth in “This flight denotes a substantial recovery for Vietnamese airlines operating in Indonesia the aviation sector. aviation that realises the government’s dual goal of fighting the the market is dominated by The International Air pandemic and promoting economic development, embracing the flag carrier, , “new normal” with more development opportunities.” Transport Association’s (IATA) its domestic subsidiary Citilink statistics show Vietnam is one and Indonesia’s largest airline, of five global markets with the of Vietnamese will be affluent more than ten-fold, from 102 budget Lion Air. Other operators largest increases in passengers compared with 5% in 2018, aeroplanes in 1990 to 1,030 in include Batik Air, a Lion subsidiary, after China, U.S., India and another factor offering the 2017. Airline expansion has been Malindo Air and Thai Lion Air. Indonesia. Its annual growth rate promise of more major growth in underpinned by the country’s Before the crisis domestic traffic from 2011 to 2015 was 32.65%. the country. economic growth, the emergence was reporting double-digit The total Vietnam aviation Like Vietnam, Indonesia has of LCCs and the expansion of the growth for five years. industry, including international seen impressive growth in its country’s middle class. All in all, post the COVID-19 traffic, increased by 2.6 times aviation sector since the airline But unlike Vietnam, Indonesia recovery there is little reason to in scale, from 23.7 million industry was deregulated in 2000. has not managed the pandemic doubt the miserable hiatus in passengers in 2011 to 61.2 million Airline passengers have increased outbreak competently. As a air passenger services is merely in 2017. from nine million in 1990 to result, its growth has stalled, a pause in both Vietnam and By 2030, the Boston around 90 million in 2016 and the especially as it already has Indonesia before they resume Consulting Group forecasts 16% country’s airline fleets have soared growing pains ranging from their rapid trajectories. ■

Bamboo Airways accepts first two Embraer E195 jets

ietnam’s first visitors to a 16 island archipelago full-service private off the southern coast of carrier, Bamboo Vietnam. vice chairman, Dang Tat Thang, conglomerate, FLC Group, Airways, is to Bamboo Airways, which said the Embraer E195’s short began flying in January 2019 operate its newly is targeting the middle to high runway performance made it with the aim of achieving five Varrived E195 jets from Hanoi to end leisure market, initially will ideal for flights to Con Dao, star status for the carrier as it tourist hot spot, the southern service Con Dao with two flights which falls short in runway built its network in Vietnam and island of Con Dao, 1,400 a day from Hanoi and once daily maintenance and aircraft fuel internationally. Pre-COVID-19, kilometres (760 nautical miles) from Vinh and Hai Phong. It will supply. it was operating 51 domestic from the nation’s capital, Hanoi. be equipped with a business The Hanoi-headquartered and regional routes and The jet service to the island class in its 118 seat configuration. company, owned by travel had transported five million will provide a staging point for Bamboo Airways executive to property and mining passengers since its launch. ■

OCTOBER 2020 / ORIENT AVIATION / 13 MAIN STORY NO BACKING OFF LOWER EMISSIONS TARGETS PROMISES INDUSTRY Global aviation remains on track with its commitment to achieving a 50% reduction in emissions by 2050 from 2005 levels, reports associate editor and chief correspondent, Tom Ballantyne.

ith aviation losses mounting by billions Also in September, manufacturer Airbus announced of dollars a month from the coronavirus developments in its hydrogen powered jet. Rival Boeing is pandemic, the industry could be forgiven continuing its research and the design of the B787 for losing sight of ambitious ecoDemonstrator in joint partnership with . environmental targets. Mid-pandemic, Engine manufacturers, whose development work is Wsurvival is the name of the game as airlines slash capacity critical to achieving ultimate sustainability, are pursuing and store thousands of jets in airline parking lots; a situation emissions mitigation programs. “The pandemic has actually that probably delights an extremist wing of the climate brought the aviation industry forward by focusing attention movement that has long targeted airlines as major global on sustainability and how we need to advance technologies polluters. that help the aviation industry drive down CO2 emissions,” Despite the enormity of the crisis the airline industry is experiencing, it has recommitted to its ambitious emissions reduction targets. “The bottom line is it’s still critically important for the industry to continue to push for sustainability and meet the 2050 targets set in stone in 2016,” said former CNN journalist and Head of Communications Environment at the International Air Transport Association (IATA), Andrew Stevens. “There is no doubt this is going to be more difficult given the financial situation of the airlines, but we have not seen clear evidence airlines are pulling back on their commitments. For example, I have not seen anything that suggested, at this stage at least, that airlines will not honour their commitments to the uptake of sustainable aviation fuel.” It is a view shared across the industry. Last month the alliance, which represents 13 major airline groups, including leading Asia-Pacific carriers Cathay Pacific Group, Airlines and the Qantas Group, re-confirmed its commitment to net zero carbon emissions by 2050. It is the first global airline alliance to unite behind a common target to achieve carbon neutrality.

14 / ORIENT AVIATION / OCTOBER 2020 MAIN STORY

Pratt & Whitney senior vice president, engineering, Geoff to address the global challenge of climate change and Hunt, told Orient Aviation last month. establish ambitious targets to mitigate CO2 emissions from As a result of the pandemic, the engine manufacturer air transport. The targets remain to achieve an average has reduced its workforce, cut capital expenditure and improvement in fuel efficiency of 1.5% per year from 2009 prioritized investments, but Hunt said one program Pratt & to 2020, a cap on net aviation CO2 emissions from 2020 Whitney has kept front and centre is the Geared Turbofan™ (carbon neutral growth) and a 50% reduction in net aviation engine (GTF™). “We believe the geared turbofan CO2 emissions by 2050 relative to 2005 levels. architecture we pioneered has room to develop and deliver In March, Montreal-headquartered International Civil improvements in fuel efficiency and lower emissions, Aviation Organization (ICAO) agreed the types of carbon particularly NOx,” he said. offset units eligible for compliance with the world’s first Rolls-Royce has announced the completion of tests on global sector climate mechanism, the Carbon Offsetting and ground-breaking technology that will power the world’s Reduction Scheme for International Aviation (CORSIA). fastest all-electric plane. “Rolls-Royce’s announcement follows the unveiling of Airbus’s three zero-emission MORE THAN 80 COUNTRIES HAVE commercial aircraft models. It is another indication COMMITTED TO THE INDUSTRY’S CARBON aerospace companies are increasingly attempting to align OFFSETTING SCHEME their businesses to a future market emphasising climate At press time, 82 countries had agreed to participate in the consciousness, GlobalData Aerospace and Defense Associate first and voluntary phase of CORSIA. It is estimated about Analyst, Harry Boneham, said. 80% of the growth in international aviation’s CO2 will be Results of a poll conducted by Globescan, released in covered by the scheme from the end of this year. September, identified growing numbers of people are “very These developments were debated at the Air Transport concerned” about climate change, despite the pandemic and Action Group’s (ATAG) 2020 Global Sustainable Aviation the subsequent economic impact of the virus. Across the 27 Forum - Green Recovery, a virtual, on-line event at the turn countries surveyed, around 90% of respondents viewed of the month that brought together representatives from all climate change as a very serious or somewhat serious sectors of the industry to discuss aviation sustainability problem. That finding has strengthened in recent years. In beyond COVID-19. the UK, long time climate change advocate, the Prince of ICAO council president, Salvatore Sciacchitano, told the Wales, has warned the climate crisis will “dwarf” the impact ATAG virtual summit “health and safety, and the of the pandemic. fundamental economic viability of operators must be At the turn of the month, China joined the front line of assured”. the anti-emissions flight with President Xi Jinping’s “But we also must recognise the opportunity this crisis commitment for his nation to reach carbon neutrality by provides to build back commercial aviation greener,” he said. 2060. ATAG executive director, Michael Gill, said “2020 was For more than a decade, aviation, with IATA as its lead supposed to be, alongside 2019, the baseline for the spokesperson, has been at the forefront of seeking the science CORSIA programme”. “An average of the two years was agreed to smooth any potential downturn in traffic in either year, but a situation as grave as the one we face was never contemplated. It is much too early to determine the impact of COVID-19 will have on the CORSIA baseline. We will continue to monitor how the situation evolves over time. However, any modelling done today will be out of date in a week,” he said. “It is very clear 2020 is a completely abnormal situation. In the meantime, we have an industry to rebuild and a world to reconnect.” While there is a major reduction in aviation’s contribution to global emissions this year given the number of aircraft on the ground, at some stage growth will resume. IATA’s Stevens said: “For the return to normal growth we are forecasting 2024, but the numbers just get worse and worse. “We have not updated that, but we will have a new financial forecast for the industry around the AGM in November. I can’t imagine they are going to be any better. They could be worse. “Given this has gone on a lot longer than anyone thought, returning to normal may be pushed further and

OCTOBER 2020 / ORIENT AVIATION / 15 MAIN STORY

further out. There is a school of thought the trajectory of aviation fuel to contribute to building a firm supply chain growth in the airline industry post COVID-19 will not for the airline industry,” he said. return [to past performance]. We will go back to growth Berhad CEO, Captain Izham Ismail rates but we won’t be at the same level of air traffic in said: “Congratulations to the oneworld alliance, Malaysia numbers by 2050 that we expected before the crisis.” Airlines is proud to be in support of this amazing initiative The pandemic has removed large numbers of bigger, less together with our fellow member airlines towards driving fuel-efficient aircraft from airline fleets. “I guess you can say the long-term sustainability of the aviation industry. We it’s a bit of a double-edged sword,” said Stevens. Airlines are seek to play a greater part in building a legacy for future taking the big ones out of service but the other side of the generations and are enhancing our own airline’s coin is fleet renewal will be more of a challenge, that is contribution to global sustainability efforts.” getting more efficient planes to replace the older planes, he Interestingly, the oneworld targets are well ahead of said. IATA’s goals. Several member airlines are actively “I can’t see fleet renewal will continue at the pace it was prioritising a range of environmental sustainability originally planned, at least not in the immediate few years. initiatives. IAG (the parent of member carriers British Yes, the environmentalists will be pretty happy when they look Airways and ) was the first airline group worldwide to up at the sky now, but the bottom line is the world still needs commit to net zero carbon emissions by 2050. JAL and air travel and connectivity. The COVID crisis will reveal what Qantas also have targeted net zero carbon emissions by it means to the global economy when you do not have air 2050, while is aiming even higher, with the goal of travel, when you do not have planes in the sky,” he said. carbon neutrality by 2045. “They’ve decided they are going to go carbon neutral, ONEWORLD ALLIANCE COMMITS TO NET zero emissions by 2050 that is more aggressive than IATA, ZERO EMISSIONS BY 2050 which is fantastic,” Stevens said. “And to say this in the Oneworld’s environmental goals underscore its carriers’ middle of the COVID crisis underlines a commitment and sustainability focus. The alliance’s chairman and Qantas focus to doing this. 2050 is still a long way out but to have Group CEO, Alan Joyce, said the commitment of oneworld that reinforcement at this time is very gratifying.” members to reach net zero emissions by 2050, from 2005 In some quarters, however, there remain questions about levels, “underlines the importance we, as an alliance, place the ability of aviation to reach the 2050 targets. In a July on becoming a more sustainable industry. Despite the report, senior associate, transportation and infrastructure challenges we are all facing from the COVID-19 pandemic, research at Sustainalytics, Helene Gaudin, said airlines are we have not lost sight of the responsibility we have to reduce in dire need of cash to recover yet the industry is expected to emissions in the long term. Today’s announcement reflects adapt and prepare itself for the more critical crisis of climate the strength of that commitment.” change. (JAL) president, Yuji Akasaka, said his “Despite the slowdown of air travel, long-term prospects airline fully recognises the industry will play a vital role in for mitigating the carbon footprint of the industry are not promoting a sustainable future and proudly supports the clear. Carbon commitments supported by comprehensive alliance in achieving net zero carbon emissions by the year programs are in place. Nonetheless, our research suggests 2050. “In recent years, the JAL Group has invested in the existing measures may not be sufficient to curve down development of sustainable emissions and mitigate climate change,” she said. The financial struggle of the industry and the required state support for it is a rare opportunity for governments to invest in cleaner solutions and dictate environmental conditions such as taxing fossil fuels and requiring the use of greener energy sources. It would undoubtedly be fiercely contested by airlines, already suffering under heavy tax burdens, she forecast. IATA is fighting proposed environmental taxes in France, which it calculated would fail to decarbonize the aviation sector but would eliminate 150,000 French aviation jobs. The Convention Citoyenne pour le Climat (CCC) - a citizens’ body created under President Macron – is proposing measures to curb aviation emissions, including an eco-tax on tickets issued in France, to raise $4.9 billion annually. France already collects some of the highest aviation taxes in Europe. IATA director general and CEO, Alexander de Juniac, warned such unilateral

16 / ORIENT AVIATION / OCTOBER 2020 MAIN STORY

impact and increasing fuel efficiency for decades. In this regard, it took 20 years and a $10 billion investment for Pratt & Whitney to create the Geared Turbofan™ engine – the first new architecture engine of the modern era, and we intend to keep innovating solutions for the good of the planet.” With aviation focusing intently on environmental goals, it is ironic the industry continues to be a target for climate action protagonists. The sensitivity of the emissions issue and the criticism of airline actions, despite their sustainability goals, won’t go away. One example, even in times of crisis, is the numerous “flights to nowhere”. They take off on a sightseeing route and return to the national taxes could same departure airport. They are being offered by airlines to jeopardize CORSIA, which is calculated to raise cash and to operate some aircraft in desperate times. In mitigate a billion tonnes of carbon emissions. the Asia-Pacific, they are being flown by All Nippon Gaudin cited former EU (European Union) climate Airways, Japan Airlines, Taiwan’s China Airlines and EVA chief, Miguel Arias Cañete, who has predicted the end of the Air and Qantas - among others. Environmental campaigners pandemic not only would return airline carbon emissions to are describing these limited flights as “gimmicks” and their pre-COVID-19 levels but could exceed these levels if “simply emissions for the sake of it”. ■ nothing was done. “The historical fall of fossil fuel prices also may impede the necessary actions to clean up the aviation industry and encourage a return to a ‘business as usual’ model that is undeniably damaging our planet,” Gaudin said.

AIRCRAFT RECYCLING COMPANIES FACING “A TSUNAMI OF DEMAND” FROM COST-CUTTING CARRIERS Sustainability is not only about emissions. The pandemic is putting pressure on other sectors of the industry. In the field of aircraft recycling, planes dismantled for parts or scrap could double to 1,000 annually to 2023, up from roughly 400 to 500 planes a year since 2016, reported data consultancy Cirium. The fate of the world’s pool of Airbus reveals zero emission grounded planes is being closely watched by the market for concept aircraft Used Serviceable Material, with one report from consultants Last month Airbus unveiled three concepts for zero Oliver Wyman forecasting “a tsunami of demand” for such emissions aircraft that could enter service in 15 years. parts as airlines cut costs. All code-named ZEROe, they are a 120-200 passenger The pandemic, which is expected to result in a 55% drop turbofan airplane with a range of 2,000 plus nautical miles, in 2020 passenger numbers, has prompted early retirements a turboprop model for 100 passengers powered by a tur- of older planes. While companies that park, dismantle and boprop engine instead of a turbofan engine and a blended buy and sell used aircraft parts see opportunity in parked wing body design for 200 passengers. planes, a sudden increase in the supply of used parts risks In the blended wing body design, the wings merge depressing prices in the estimated $3 billion a year industry, with the main body of the aircraft. It will have a range despite demand from airlines seeking to lower maintenance similar to the turbofan and an exceptionally wide fuselage, Airbus said. costs. All three concept aircraft rely on hydrogen as the Ultimately, Pratt & Whitney’s Hunt said there is no primary power source. “silver bullet” to solving the climate impact of commercial Airbus CEO, Guillaume Faury, said at the unveiling of aviation. “It will take a basket of solutions, including the prototypes last month he strongly believed the use of sustainable aviation fuels from green, non-food stock hydrogen – both in synthetic fuels and as a primary power sources, electric and electric-hybrid and alternative fuel from source for commercial aircraft – has the potential to signif- renewable and green sources,” he said. icantly reduce aviation’s climate impact”. “Engine makers have been focused on reducing climate

OCTOBER 2020 / ORIENT AVIATION / 17 INDUSTRY ADDENDUM FINANCE MROS OEMS TECHNOLOGY TRAINING

TECHNOLOGY • 20 inch IFE monitors • Improved privacy with a door fully integrated India’s Air Works into the unit’s design named Marketing • Closed amenity and laptop/device stowage • Large meal table stowed under cocktail table Campaign of 2020 at • Adjustable arm rests MRO Asia-Pacific STELIA Aerospace vice president cabin interiors, Thiery Kanengieser, said India’s Air Works managing director with OPERA, airlines operating single aisle and CEO, Anand Bhaskar, said being aircraft on intercontinental routes can offer the winner of MRO Asia-Pacific’s passengers the comfort they have on wide- award for Marketing Campaign of bodies. “Combining design and efficiency, 2020 was the first such recognition for this new seat is a major step forward for our any MRO in India. industry,” he said. “With supportive taxation policies, STELIA also is a global leader in aero the Indian MRO sector is poised for structures, designing and manufacturing the faster growth in coming years and the front fuselage sections of the Airbus family of Asia-Pacific will play a critical role in Travelport appoints new aircraft, the Toulouse-headquartered OEM’s making the country an industry hub,” chief marketing officer fuselage sections and specific sub-assemblies, he said from the MRO’s headquarters ATR’s fully equipped wings and fully equipped in Gurugram (Gurgaon) in outer Delhi. Equipped with two decades of senior wings for other commercial aircraft types “Bagging the Marketing Campaign management marketing experience, produced by Embraer and Boeing. ■ of the Year reflects the consistent multi-lingual Jennifer Cato has been chosen delivery capabilities of Air Works’ as Travelport’s chief marketing officer service quality over seven decades,” and a member of the company’s Senior MRO AND COMPONENTS he said. Leadership Team. Based in New York, Cato’s “It also acts as a beacon of responsibilities are to market Travelport’s success in times to come for the travel and payment solutions to offline and China’s AMECO invests in entire Indian MRO ecosystem, in online travel buyers worldwide. ■ facilities to service the sync with the [India] government’s ambition.” Pratt & Whitney GTF engine Air Works began a strategic CABIN INTERIORS transformation in 2018 built around Beijing MRO, AMECO, is joining the Pratt & an expanded social media presence Whitney global EngineWise service network that aims to strengthen the 70-year- as a GTF maintenance provider after the joint old company’s relationships with venture company committed to investing customers, partners and employees. in the necessary technology to service the Air Works associate vice engine type. The engine manufacturer said president brand and communications, last month it plans to have 10 active GTF MRO Gaurav Sahni, said: “As Indian MROs engine centres in operation by year-end. increasingly upscale and synchronise AMECO Business of Beijing chairman, with the global aviation ecosystem, Ni Jiliang, said the MRO has had a long-term marketing and communication will and stable relationship with Pratt & Whitney play an even greater role in promoting and that the U.S. engine maker’s GTF engine the visibility and capabilities of the was perfectly in line with AMECO’s corporate sector.” STELIA unveils OPERA strategy. Air Works is India’s largest line Since a restructuring of the MRO in 2015, maintenance provider to global business class seat Ltd has held 75% of the company airlines, is certified to maintain more and 25%. It will be the fourth than 50 aircraft types and operates 27 STELIA aerospace, a global manufacturer of facility in Asia supporting the GTF alongside centres across India staffed with 1,300 pilot and premium passenger cabin aircraft Eagle Services Asia in Singapore and IHI and employees. It also offers commercial seating, has launched OPERA, a business MHIAEL in Japan. aircraft asset management and aircraft class seat specifically designed for single aisle Pratt & Whitney vice president commercial finishing services to the global market. . aftermarket, David Emmering, said AMECO will This year marks the 50th anniversary Its features include: be the first GTF MRO network shop in China. of its maintenance of rotary wing • Widest full-flat bed for single aisle business Eleven Mainland airlines fly 140 A320neo machines, the MRO said. ■ class cabins powered by GTF engines. ■

18 / ORIENT AVIATION / OCTOBER 2020 ORIENT AVIATION AND E-ORIENT AVIATION

NOVEMBER 2020

CHINA’S domestic airline industry carried 10% more passengers in the first week of October compared with a year ago. Factors contributing to the 15 million trips and the airlines’ COVID-19 recovery trajectory are demand for local travel as international borders remain closed, lucrative travel packages and heavily discounted fares.

IN OUR NOVEMBER ISSUE: Orient Aviation will focus on the next stage of the Mainland industry’s recovery – international travel – a sector still shrouded in uncertainty not just for China but for all of the long-haul dependent carriers of the Asia-Pacific.

DECEMBER-JANUARY 2020

THE YEAR NO ONE WILL FORGET IN THE FINAL EDITIONS OF 2020, Orient Aviation and e-Orient Aviation will report the industry’s forecast for 2021 against a backdrop of the most devastating 12 THE 2020 YEAR IN REVIEW: Also in December- months in the history of Asia-Pacific aviation. Predictions January, we will take readers down aviation’s memory for a full recovery for the region’s airlines, based on pre- lane, recalling the landmark events and appointments COVID-19 levels, vary from late 2021 to 2024. Uncertainty in Asia-Pacific aviation in 2020 - a year that has is the only certainty about the future health of the transformed the structures, ambitions and expansion industry, our editorial team will report. strategies of the region’s airlines.

ADVERTISING ENQUIRIES TO ORIENT AVIATION MEDIA GROUP SALES DIRECTORS: The Americas / Canada Europe, the Middle East & the Asia-Pacific RAY BARNES DEFNE ALPAY E-mail: [email protected] E-mail: [email protected] T: +1 (434) 770 4108 T: +44 7712 829859

ORIENT AVIATION MEDIA GROUP: ORIENT AVIATION • E-ORIENT AVIATION • ORIENT AVIATION DAILY DIGEST • WWW.ORIENTAVIATION.COM