Breaking Free
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Vol. 20 No. 10 December 2013-January 2014 orientaviation.com ORIENT AVIATION PERSON OF THE YEAR 2013 BREAKING Yoshiharu ueki FREE President Pilot turned president Japan Airlines re-builds Japan Airlines Asia’s banking honey pot AAPA: Infrastructure shortfall Qantas wants new for fleet funding limits region’s growth foreign ownership rules EmbraerCommercialAviation.com An even higher high achiever. The newly enhanced E190. It’s the result of our commitment to continuous improvement of our E-Jets family. Better performance and appeal: lower fuel burn, longer service intervals, upgraded avionics, and an even more refined cabin — all combine to keep us out in front of any competitor. At the head of the class, where high achievers always tend to be. 1000+ E-JETS. 65 AIRLINES. 45 COUNTRIES. CONTENTS Volume 20, Issue 10 COVER STORY 16 Orient Aviation Person of the Year 2013 YOSHIHARU UEKI PUBLISHED BY WILSon PreSS HK LtD President GPO Box 11435 Hong Kong Japan Airlines Tel: Editorial (852) 2865 1013 Fax: Editorial (852) 2865 3966 E-mail: [email protected] Website: www.orientaviation.com Chief Executive Barry Grindrod BREAKING E-mail: [email protected] Publisher FREE Christine McGee E-mail: [email protected] Pilot turned president Chief Correspondent re-builds JAL Tom Ballantyne Tel: (612) 9638 6895 Fax: (612) 9684 2776 E-mail: [email protected] Special Correspondents China Bill Savadove Tel: (86) 138 1818 2162 E-mail: [email protected] Japan & Korea Geoffrey Tudor Tel: (813) 3373 8368 COVER PHOTO: KAKU KURITA E-mail: [email protected] India R. Thomas th Tel: (852) 2865 1013 COMMENT 57 AAPA AssemBLY oF E-mail: [email protected] 3 Infrastructure must keep pace with airline PResIDents Photographers growth 8 Asia-Pacific airline bosses say infrastructure Rob Finlayson, Colin Parker, Graham Uden shortfall threatens their growth Design & Production NEWS Chan Ping Kwan 6 Qantas cries foul over rival’s foreign partnerships Printing Printing Station(2008) 6 Mainland China LCC, Spring Airlines, orders 30 ADVERTISING more A320s South East Asia and Pacific Tan Kay Hui Tel: (65) 9790 6090 E-mail: [email protected] The Americas / Canada Barnes Media Associates Ray Barnes Tel: (1 434) 927 5122 Fax: (1 434) 927 5101 E-mail: [email protected] 12 Now we are won: Asia-Pacific LLCs welcomed Europe & the Middle East into fold REM International Stephane de Rémusat 6 China’s Xiamen Airlines all-Boeing fleet reaches Tel: (33 5) 34 27 01 30 100 NEWS BACKGROUNDERS Fax: (33 5) 34 27 01 31 E-mail: [email protected] 6 Southern China’s new Shenzhen International 22 Battle joined “Down Under” with no peace in Airport opens for big business sight © All rights reserved Wilson Press HK Ltd., 6 Emirates reports profit in “very competitive” Hong Kong, 2012 market ASSOCIATION OF ASIA PACIFIC AIRLINES SECRETARIAT Level 27-1, Menara Prestige, 1 Jalan Pinang, 50450 Kuala Lumpur, MALAYSIA Tel +603 2162 1888 Fax +603 2162 6888 Email : [email protected] Director General Andrew Herdman Commercial Director 7 CFM LEAP engine flies through first tests 24 Asia’s banking honey pot. Asia-Pacific airlines Beatrice Lim 7 Shorttakes: Jetstar Japan investors boost the and lessors must plumb the region’s wealth for Technical Director Martin Eran-Tasker LLC’s coffers funding fleet expansion DECEMBER 2013-JANUARY 2014 / ORIENT AVIATION / 3 SAVE THE DATE Orient Aviation Media Group Announces the inaugural SOCIAL SKIES SUMMIT Examining the impact of social media on global aviation TUESDAY MARCH 18, 2014 SkyCity Marriott Hotel, 1 Sky City Road East, Hong Kong International Airport, Lantau, Hong Kong Information: Shirley Ho [email protected] or telephone +852 2865 1013 Organised by the Orient Aviation Media Group, the region’s leading commercial aviation media company. AgendA coming soon … COMMENT Never enough in the insatiable Asia-Pacific Airports across the region have announced a series runway and terminal is planned for construction, but the of massive, multi-billion dollar investments in airports, project’s environmental impact study will not be completed terminals and runways as well as focusing - at last – on until next year. If the all clear is given to the project, Hong developing a more efficient and modern regional Asian Kong’s third runway will be finished in 2023! Skies air traffic management network. In Mainland China, despite the unprecedented scale The burning questions are: is this significant investment of new airport construction and expansion of completed sufficient keep up with the region’s rapid passenger growth? facilities, there is severe congestion at the three major And will this welcome infrastructure investment be rolled out hubs: Beijing, Shanghai and Guangzhou, leading frequently on a timetable that can match the region’s airline growth? to costly and intolerable delays of up to six to eight hours. When the heads of the region’s airlines met in Hong China, like India and the Philippines, is recording 12% plus Kong last month, for the 57th Assembly of Presidents of the passenger traffic a year, which will double traffic every six Association of Asia Pacific Airlines (AAPA), it quickly became years. clear the answer might be no. AAPA director general, There is undoubtedly potential for crisis. Airlines can Andrew Herdman, said the Asia-Pacific is generally ahead of buy as many new planes as their finances can sustain in the game but “there are clear signs we are behind the curve” their desire for profitable growth, but if there are insufficient when it comes to aviation infrastructure. numbers of airport slots available and a shortage of space Cases in point included Jakarta’s Soekarno Hatta along airways for expanded networks, larger fleets will have airport, already operating at twice its design capacity as a most disruptive impact on airline efficiency - at a time air traffic growth hits double digit pace. A new airport is when airline profitability is difficult to achieve. planned for the country’ capital city, but it is years away from The region’s governments and airport authorities completion. must understand that inadequate investment in aviation Hong Kong International Airport has a cap of 68 infrastructure will have serious economic repercussions movements an hour and is operating close to the legal peak, for every country across the region. They must – now at 65 arrivals and departures every 60 minutes. Saturation and not tomorrow – get the phrase “Fast Track” into point is rapidly approaching as traffic forecasts made in their vocabularies and to the top of their “to do” aviation 2009 run three years ahead of predicted growth. Yes, a new infrastructure list. ■ TOM BALLANTYNE Chief Correspondent The first choice for industry insight and analysis ORIENT AVIATION ORIENT AVIATION ORIENT AVIATION CHINA INDIA ACNielsen readership survey “It has established itself as the primary source of information on industry topics in the Asia-Pacific region” DECEMBER 2013-JANUARY 2014 / ORIENT AVIATION / 5 REGIONAL ROUND-UP Qantas calls foul over rival’s capital raising At press time, Qantas Group CEO, Alan Joyce, raising, its equity partners Air New Zealand, That element of the argument raised had elevated his public campaign to block Etihad Airways and Singapore Airlines, eyebrows in Hong Kong where the Qantas Virgin Australia’s A$350 million (US$329 could hold up to 68% of Virgin Australia, with Group and its partners, China Eastern Airlines million) capital raising with the assertion the Britain’s Virgin Atlantic group retaining 10% and a subsidiary of the gaming and property Australian government will ensure Virgin of the carrier. Joyce said Qantas will operate group, Shun Tak, are planning to start a low- Australia will operate under the same rules as at a disadvantage if the fund-raising proceeds cost carrier, Jetstar Hong Kong. Its application the airline group he heads. because the Qantas Sales Act limits foreign for an Air Operator’s Certificate is pending Despite reluctance from the newly elected investment in “The Flying Kangaroo” to 49%. - and has been for months. Hong Kong-based government and the country’s opposition Joyce alleges the fund-raising is a back door way carriers argue the LCC will be managed at its leadership to become embroiled in the dispute, for Abu Dhabi, Singapore and New Zealand to top tier by parent company, Jetstar in Australia, Joyce said: “there is a lot at stake, but I have access what should be rights that are available which means Hong Kong would not be its absolutely no doubt the politicians will see to Australian carriers. He added that under the principle place of business; a requirement of sense and reframe the policy network to ensure Air Navigation Act, an airline has to be 51%- the Special Administrative Region’s Basic Law. this is a level playing field again.” owned to gain access to these routes, under See War “Down Under” with no peace in sight Under the terms of Virgin Australia’s capital current bilateral air rights agreements. page 22. ■ Mainland LCC orders A320s Xiamen Airlines fleet hits 100 Mainland China carrier, Spring Airlines, has ordered 30 more A320s, Xiamen Airlines, based in holiday charters - between China valued at US$2.75 billion, with the low-cost carrier expected to the affluent coastal province and Taiwan were approved a receive the single aisle aircraft from 2015. Shanghai-based Spring of Fujian, accepted the 100th decade ago. Xiamen Airlines Airlines told Bloomberg it had intended to build a fleet of 100 aircraft of its all-Boeing fleet chairman and president, Che airliners by 2015, but that target had been pushed out to the end of in November. The 27-year-old Shanglun, said the all-Boeing the decade because of government delays in approving jet purchases. carrier, which serves 218 fleet “was a key component of our “Within the last 12 months we have seen many signs that obstacles domestic destinations and 26 growth strategy and our ability to we currently face will disappear,” Spring’s deputy general manager regional and international routes, achieve 27 years of profitability”.