Airline Business Daily

From news from IATA AGM in l SATURDAY 1 JUNE 2019

International reach: Asia-Pacific carriers line up in Los Angeles 1 Alan Wilson/Creative Commons TAILING AWaY? Several crunch issues threaten to take gloss off industry’s recent successes

Airlines assemble in Seoul for this year’s IATA groundswell of action by local authorities to AGM in relatively good financial health but suspend Max operations – even though the with plenty of challenges on the horizon. type’s certificating body, the FAA, initially saw Industry profits remained high in 2018, no reason to ground the aircraft – provided a aided by a sharp fall in oil prices in the final further nuance to the story. quarter. It had been a rise in fuel costs over Nearly three months since the Ethiopian

the first half of the year that had done much to crash, the type and the more than 350 Manish Swarup/AP/Shutterstock endanger those profit levels. aircraft in service remain grounded. Pilot protest: ’ future is unclear Fuel has since climbed back, providing fresh At the other end of the scale, the final call pressures for carriers during the coming year. came for ’s ultra-large A380 when the plementation of the scheme await at the For some, years of robust profits and im- airframer announced it was to end produc- ICAO general assembly. All the while, avia- proved balance sheets mean their financial tion of the type. tion’s environmental impact remains a key so- health has so far remained largely undented. Meanwhile, many of the macro-concerns cial issue, as illustrated by the high-profile Ex- For others, markets remain tough and com- of recent years remain. Spiralling US trade tinction Rebellion protests, which included petition fierce. has suffered its share wars with continue – proving particular- the UK’s Heathrow as a target. of failures, largely at the fringes of the ly relevant to the air cargo sector – while the And social pressure remains to ensure diver- industry, but the collapse and attempt to re- UK’s strategy for its protracted attempts to sity is positively reflected across senior man- suscitate Jet Airways in shows bigger leave the European Union remains as unclear agement at airlines. Notable female appoint- carriers are vulnerable. today as it did when airlines met in Sydney for ments in recent months – including Anne First-quarter results also provided the initial last year’s AGM. Rigail at Air – perhaps indicate some indication of the impact from the grounding At the same time, environmental concerns change is in the air, but after the virtually all- of the Max following the Lion Air endure as a crucial backdrop. The recording male line-up of IATA board members last year, and Ethiopian Airlines crashes. This put avia- process supporting the CORSIA scheme has stakeholders will be looking for evidence of tion safety back in the spotlight, while the begun, and crucial decisions around the im- significant progress this year.

Global industry in numbers 41% 7.0% 34%

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Careen: initiative is key to handling rising traffic One Order certification for German carrier Lufthansa in May became the first to secure One Order certification from IATA, the initiative aimed at modernising its member air- lines’ flight booking and ac- counting processes. One Order is designed to in- tegrate all travel products and services for a particular trip – including those of partner air-

IATA lines or third parties such as ho- tels and rental companies – under a single booking refer- ence. The initiative is facilitated One ID ‘crucial to growth’ by IATA’S New Distribution Ca- pability (NDC) by using the Biometric identity initiative from IATA will be critical as saturated airports seek to cope XML standard to modernise with a sharp rise in passengers, but regulatory and information-sharing hurdles remain systems communications. The certification from IATA KERRY REALS LONDON pointing to airports such as Lon- Despite these perceived advan- follows a one-year pilot project don Heathrow, which are already tages, Careen says there is a “real at the carrier in ATA will put forward a resolu- “saturated from multiple points”. reluctance country-by-country collaboration with Lufthansa tionI at the AGM aimed at accel- “There is not one airport on and airport-by-airport” to share Systems. The project’s objec- erating implementation of its the planet handling 10 million- information. There is also a “lack tive was to conduct the full One ID biometric identity initia- plus passengers annually that of regulation and standards” that product offer and booking pro- tive, which it says is vital to en- doesn’t have a plan to implement must be addressed. cess solely on the basis NDC suring smooth passenger jour- some sort of biometric into the The “main reason” for putting and One Order standards. neys as the air transport sector passenger journey,” says Careen. forward a resolution on One ID, Yanik Hoyles, IATA’s director continues to expand. He adds that IATA is taking a says Careen, is “to get the support of industry distribution pro- One ID seeks to use fingerprint, three-pillar approach to the issue, of our airlines so we can utilise grammes, states: “With their iris or facial recognition technol- based on “harmonisation, stand- that for our advocacy”. NDC and One Order involve- ogy to reduce the need for repeti- ardisation and interoperability”. On the issue of privacy con- ment, the Lufthansa Group is tive identity checks at airports In addition to making passen- cerns, Careen says: “The entire helping to take our industry fur- and create a seamless, end-to-end ger journeys smoother, the shared premise of utilising this informa- ther along the road to a mod- passenger process. While the use of biometric identity checks tion is no different to using a pass- ern digital retail experience.” technology exists, regulatory hur- could bring a “step change” when port. You’re essentially replacing dles and a reluctance to share in- it comes to taking a more risk- it with another biometric, which formation must be overcome be- based approach to security, argues will be used and then discarded.” fore widespread implementation Careen. It could also “free up Careen expects it to take be- can become a reality. about 40% of the terminal space” tween five and 10 years before full, “The real reason behind it because certain areas of the airport global adoption becomes a reality. [One ID] is that we’re all talking would no longer need to be “com- “You’re going to see pockets of about two-times growth by 2035, pletely quarantined off”. implementation,” he says, starting and we’re not going to be able to “When information is shared it with the Five Eyes – an alliance of do what we do today in the same allows countries to have the in- five countries comprising Austral- way,” says IATA’s senior vice- formation they need and not have ia, Canada, New Zealand, the UK president airport, passenger, to stop co-mingling from happen- and the USA, which have agreed to

cargo and security, Nick Careen, ing,” he explains. co-operate on intelligence issues. ■ Lufthansa

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Ellis Taylor Auckland Air New Zealand goes for 787-10 Carrier opts for Dreamliner on the eve of AGM to replace 777-200ERs, but switches from Rolls-Royce to GE power

lexibility was key in Air New FZealand’s decision to pick the Boeing 787-10 over the Air- bus A350 and 777X series to re- place its eight 777-200ERs. The Star Alliance carrier revealed at an event on 27 May that it plans to place an order for eight 787-10s, with options for 12 more 787s. At list prices, it values the deal at $2.7 billion. In a departure from its existing 13 Rolls-Royce Trent 1000-pow- ered 787-9s, the new jets will be powered by the rival General Electric GEnx-1B powerplant. “As we start to look at the route Luxon cites mix that we have, as we look at the GEnx’s fuel the passenger mix that we have efficiency

as well, which is often different Erik Anderson/EPA-EFE/Shutterstock to other airlines, we felt the -10 gave us the flexibility to do what have the family of aircraft­ we need rior for the 2022 launch of the its Auckland- route, we wanted to do,” explains chief going forward,” he adds. -10, we will then bring that same where the market has shifted executive Christopher Luxon. A key part of the deal is the cabin mix and profile right into from low-value, group tourism to “We felt that the GEnx engine ability of the airline to switch its all of our other widebody aircraft high-value customers that are just gave us that little bit more orders to the smaller -8 and -9 as well,” he says. now filling premium cabins. fuel efficiency, which just helped variants if required. Similarly, “We flew a 777 out there, it was us with getting to where we the options will give it the ability Premium choice too heavy, too big,” he says. “We wanted to get to.” to scale up the -10 fleet should it Boeing’s nominal two-class con- then moved it to a 767 which Deliveries of the 787-10s will see opportunity to grow more figuration for the 787-10 has seat- didn’t have lie-flat business class, start in 2022 and stretch through quickly over that time. ing for 330 passengers, but it but all our customer mix was low- to 2027, allowing the 777-200 As it stands, the airline is plan- seems likely that Air NZ will go value group travellers from China fleet to phase out by around 2025 ning to operate the 787-10s in for a more premium-heavy mix of in the back of the aircraft, so the – although the carrier maintains much the same way it does the business, premium economy and planes were full but lower value, that it could keep them on longer 777s they will replace, meaning economy seating. and now we’ve put the 787-9s in if market conditions dictate. that Asia and the USA will be the In the case of its last four ­787-9s, there, and we’ve actually found focus of operations. the carrier elected to fit more busi- we need more premium cabins. “The 787-10 gives us “The 787-10 we will receive is ness and premium economy seats Now that’s all happened in the not only a natural candidate for our compared to its earlier ones. space of three to five years.” the flexibility to do destinations across Asia, but it will “What we are learning is that The 777-200ER decision had also be a great link for New Zea- obviously with weight around been expected by some observers what we wanted to do” land, linking it to the west coast of cargo, fuel, and passengers... we to drive its plans to replace its Christopher Luxon America as well,” says Luxon. think there is an opportunity for eight 777-300ERs. But Luxon says Chief executive, Air New Zealand With the purchase decision us to move to a more premium that the company has “compart- made, Air NZ will now start to mix, and that’s something we mentalised” the decisions on 777- work on the interior configuration, have been thinking a lot about.” 200 and the later -300ER replace- The decision followed a two- which will influence how the new This reflects a strategy of pursu- ment programme, and will run a year evaluation process. Luxon aircraft are used in its network. ing more premium customers, separate process towards the mid- says that the airline was The carrier has a secretive even though it does not have a dle of next decade for a larger jet. “impressed with the candidate facility nicknamed “Hangar 22” large reach into the global corpo- “Our intention at this point is aircraft”, which also included the where it develops and tests new rate market. Rather, it is seeing that the 777-300ERs come up for A350 and 777X. seats and other service innova- demand from leisure travellers replacement around the mid- to “But for us in the way that we tions. Luxon says feedback from that are willing to pay for business late 2020s, and that would be the look at our mix and the type of consumers will inform not only or premium economy products. logical time when we would prob- customers that we have, which is a the new products that will fea- “We just think that is some- ably want to go off and look at a mix of corporate and leisure, and ture on the 787-10s, but on its thing that we want to play with – larger aircraft, so the A350s and high-value leisure and tourists,­ we entire widebody fleet. value over volume,” says Luxon. Boeing 777Xs come into that frame feel that with the 787-9/10,­ we “When we reinvent the inte- Illustrating the point, he cites at that point in time,” he says. ■

4 | Airline Business | 1 June 2019 flightglobal.com/airlines Proud IATA Strategic Parter & Sponsor of AGM

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Clayton gets to grips with Airlines find solidarity in IATA governance position Polish airport planning push new face among the IATA Clayton joined team at this year’s AGM IATA is helping to establish A IATA in April will be Karen Clayton, who took an airport committee to rep- up her new role as the associa- resent airlines’ interests in tion’s corporate secretary at the the construction of Poland’s start of April. planned Solidarity airport. Clayton, a lawyer by training, Airport developer, Soli- was for the last two years Air darity Transport Hub Poland, New Zealand’s general counsel says the consultative com- and company secretary before mittee will serve as an airline taking up the IATA position. technical body to “review Prior to that, much of her experi- strategic options, assess the ence came from working with cost and benefits, and con- firms in the energy sector. sider the operational im- “I think that is one of the bene- pacts” on airlines and pas- fits I can bring to the role of cor- sengers associated with the porate secretary,” Clayton told building of the new facility, FlightGlobal ahead of this year’s which is expected to be AGM. “The experience of differ- completed by 2027. ent industries will be a help.” IATA is to invite all passen- “The association has 290 ger and cargo airlines that members and counting. It is have an interest in operating quite a disparate group in terms to the new gateway to join the of size, jurisdiction and airline committee. This will include

model – so that’s quite a range of IATA both current operators at War- representation,” she says of her saw’s Chopin airport, which is remit. In her role Clayton will into the busy AGM. “The first role during such a busy period set to close, and those that ensure the integrity of IATA’s thing he [Steele] said to me, is ‘it’s has enabled her to quickly famil- may have future plans to enter governance framework, includ- in eight weeks’,” Clayton says. iarise herself with the range of the Polish market. ing management of the associa- While the AGM – and the issues impacting IATA members. “Our operation is carefully tion’s board of governors and its board and committee meetings “­Airlines only deal with the thought out,” says Mikolaj various committees that proceed it – are particularly issues relevant to them – the ones Wild, government plenipo- Clayton has taken over the busy, Clayton points to the sup- that are the highest priority to tentiary for Solidarity Trans- ­corporate secretary role from port of the existing IATA team their market,” says Clayton, not- port Hub Poland. “It is impos- Paul Steele – who had combined during this period. “We have ing that in the last seven weeks sible to plan the airport well the role with that of senior vice people who are very experienced she has had the opportunity to without asking for the opinion president, member and external in doing this,” she says. see the full range of factors of those who will use it. affairs – and immediately comes And she notes that starting the impacting airlines globally. ■ Kapoor to take on transformation effort Oneworld has appointed former the central alliance team will be more of a “virtual” team, with key head of airlines put in place in the near future, executives based around the Rishi Kapoor to the newly created Oneworld says. world to enable the central secre- role of chief transformation officer Oneworld has been undergo- tariat to “interface more effective- to lead the group’s restructure. ing a restructuring for 18 months, ly with member airlines”. Oneworld chief executive Rob which was publicly disclosed on Kapoor was previously respon- Gurney says Kapoor has the “ideal 1 February during its 20-year an- sible for implementing BA’s joint skillset and experience” to imple- niversary event in London. venture businesses with its One- ment the “radical transformation” While the alliance intends to world partners American Airlines, the alliance is undergoing to build keep its global head office in Iberia and, later, Finnair across on the offering it provides for cus- New York, Oneworld says Kapoor the Atlantic; and its tie-up across tomers and its member airlines. will maintain London as his prima- Siberia with Airlines and

Oneworld Following his appointment, a ry base, as part of the alliance’s Finnair. He also oversaw the inte- Kapoor also worked at BA “more extensive restructuring” of gradual transition to becoming gration of BMI into BA.

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INTERVIEW

GRAHAM DUNN SEOUL Facing up to industry headwinds Director general Alexandre de Juniac sees airlines facing a tougher economic and geopolitical climate, combined with the challenges raised from the circumstances of the Max grounding and increased pressure to tackle emissions

irlines gather for this year’s de Juniac is the environment. AAGM against a backdrop of De Juniac sees While 2019 is notable, given it pressing challenges, including signs of pressure in marked the start of the recording the consequences of protectionist first quarter results of emissions in line with the policies and trade wars pursued planned roll-out of CORSIA, the by some governments in the airline industry’s environmental view of the association’s chief credentials remain in the spot- ­executive and director general light amid various new green tax ­Alexandre de Juniac. initiatives and heightened pres- Speaking on the eve of the sure-group action in Europe. AGM, de Juniac said airlines con- “There is clearly an increased sequently have a mixed view of pressure to reduce our CO2 emis- the current climate. “There is sions – it’s not just to stabilise, some optimism because we are but to reduce,” says de Juniac, expecting significant growth in noting momentum, for example, the coming two decades, and up from the “flight shame” cam- to now the traffic is positive, at paign in . least for the passenger business.” “We have to work on our pro- IATA figures show passenger gramme to fulfil our commit- traffic growth of 4.6% over the ments – so, more efficient tech- first four months of this year. But nologies, optimisation of a combined growth rate of 3.7% operations, and implementation

for March and April shows Natalia Mroz of CORSIA. expansion has been slowing, “But then we have also to alongside a 3% drop in air cargo the two crashes that have put the grounding it immediately and explain more clearly, and proba- traffic so far this year. spotlight on safety, and we have to some are waiting to make the bly outside aviation circles, what “The headwinds we flagged do everything to restore confi- same decision. we have done, what we intend to when we disclosed our outlook dence on safety,” he says. “This type of misalignment – do and what we have committed six months ago are there,” notes and lack of collaboration and co- to, because it is the most ambi- de Juniac. “So the consequences “We have a challenge operation among regulators – I tious programme of all indus- of trade wars, the protectionist think it is probably the biggest tries. We can be proud of what we measures, the increase in oil because we have a threat on our safety/certification are doing.” price and in some costs, they system,” he says. That includes the target of a have triggered more difficult eco- deficit of women in “We have to be clear on what 50% reduction in net aviation nomic conditions, and our mem- we think is needed, from the air- CO2 emissions by 2050, relative bers are living with these more executive positions” line point of view, to manage to 2005 levels. difficult conditions and the Alexandre de Juniac safely the re-entry into service of impact on their profitability. Director general, IATA the aircraft. What we say is we DIVERSE THINKING “Already we have seen the first need strong collaboration Meanwhile, female representa- quarterly results published, espe- between regulators, full transpar- tion – or rather a lack of it at the cially in Europe and in Asia, “Our accident rate is much bet- ency of the process and total top level of airlines – dominated were below last year,” he says. ter than it was five years ago and alignment between regulators.” much of the coverage of last IATA will provide its latest it is a permanent improvement,” IATA recently convened a year’s AGM in Sydney. financial forecast for the industry says de Juniac. But he notes cir- summit with operators in Mon- “We have a pretty big chal- during the AGM. Its previous cumstances of the grounding treal – on the same day the FAA lenge in front of us, because we outlook, issued in December raised questions around things completed a similar exercise with clearly have a deficit of women, 2018, projected a small uptick in like certification processes. regulators – to identify the priori- especially in the executive posi- collective industry net profits to In particular, the phased ties for airlines on the re-entry tions,” says de Juniac. $35.5 billion in 2019. grounding of the aircraft by dif- into service for the aircraft. “We are working to identify ferent national and regional regu- “We are aiming at having the key elements and gaps to fill, SAFELY realigning lators raises wider certification another meeting, including the and we are working with all our Further factors impacting the issues. “If you are in the shoes of operators, regulators and manu- members to improve this situa- industry include the fallout from the passengers or the general facturers, in the coming five to tion,” he says. the grounding of the Boeing 737 public, it is difficult to under- seven weeks to assess the situa- “It is not a short-term issue. It Max in March. stand why there is a progressive tion and clearly identify what will last probably for a decade, “We have faced some unex- grounding,” states de Juniac. still needs to be done,” he says. but we have to constantly pected and tragic events following “Why you have authorities Another key issue flagged by improve year after year.” ■ flightglobal.com/airlines 1 June 2019 | Airline Business | 9 Chief executives

lewis harper london Quantifying airline leader legacies

The past 12 months have seen a number of high- profile airline chief executives leave their roles. April also saw the death of chief Cho Yang-ho, one of the industry’s longest-serving leaders, with service stretching back to 1992. Jeon Heon-Kyun/EPA/REX/Shutterstock Visit Mexico Confederation of Icelandic Employers Using Cirium schedules Cho Yang-ho Luis Garza Bjorgolfur Johannsson data and Cirium’s Fleets Korean Air Interjet Icelandair Analyzer, we look at a selection of data for key Started: 1992 Started: October 2005 Started: January 2008 leaders’ spells at the helm Until: April 2019 (on his death) Departed: January 2019 Departed: August 2018 of their respective airlines. Months in role: 326 Months in role: 158 Months in role: 126 Fleet on joining: 84 Fleet on joining: 0 (chief at Fleet on joining: 16 In most cases, the Fleet April 2019: 178 launch of airline) Fleet on departure: 36 statistics reflect wider Fleet change: +94 Fleet on departure: 73 Fleet change: +20 growth trends in the Destinations on joining: 40 Fleet change: +73 Destinations on joining: 22 global industry – both in (approximation)* Destinations on joining: 0 Destinations on departure: 35 terms of aircraft operated Destinations April 2019: 108 Destinations on departure: 53 Destinations change: +13 and destinations served Destinations change: +68 Destinations change: +53 Flight growth: 114.2% Flight growth: 1992 data n/a Flight growth: n/a Seat growth: 113.7% – as demand for air travel Seat growth: 1992 data n/a Seat growth: n/a ASK growth: 161.4% has boomed since the ASK growth: 1992 data n/a ASK growth: n/a turn of the century BillyPix Australia Virgin BillyPix Blue Air

Tan Wangeng John Borghetti Craig Kreeger Gheorghe Racaru China Southern Virgin Australia Blue Air

Started: January 2009 Started: May 2010 (when Started: February 2013 Started: January 2013** Departed: November 2018 airline was Virgin Blue) Departed: December 2018 Departed: September 2018 Months in role: 117 Departed: March 2019 Months in role: 70 Months in role: 67 Fleet on joining: 282 Months in role: 105 Fleet on joining: 41 Fleet on joining: 8 Fleet on departure: 583 Fleet on joining: 74 Fleet on departure: 41 Fleet on departure: 27 Fleet change: +301 Fleet on departure: 100 Fleet change: 0 Fleet change: +21 Destinations on joining: 163 Fleet change: +26 Destinations on joining: 31 Destinations on joining: 22 Destinations on departure: 201 Destinations on joining: 46 Destinations on departure: 26 Destinations on departure: 64 Destinations change: +38 Destinations on departure: 56 Destinations change: -5 Destinations change: +42 Flight growth: 52.5% Destinations change: +10 Flight growth: (11.5%) Flight growth: 330.1% Seat growth: 60.6% Flight growth: 2.1% Seat growth: (16.6%) Seat growth: 320.8% ASK growth: 119.8% Seat growth: 22.8% ASK growth: (17.2%) ASK growth: 251.5% ASK growth: 24.3%

10 | Airline Business | 1 June 2019 Tom Campbell Tom Asiana IATA Vnukovo International Airport

Pekka Vauramo Kim Soo-cheon Stephen Kavanagh Dmitry Saprykin Finnair Asiana Aer Lingus Rossiya

Started: June 2013 Started: January 2014 Started: February 2015 Started: November 2015 Departed: November 2018 Departed: September 2018 Departed: December 2018 Departed: September 2018 Months in role: 64 Months in role: 55 Months in role: 45 Months in role: 40 Fleet on joining: 44 Fleet on joining: 83 Fleet on joining: 44 Fleet on joining: 24 Fleet on departure: 56 Fleet on departure: 83 Fleet on departure: 57 Fleet on departure: 64† Fleet change: +12 Fleet change: 0 Fleet change: +13 Fleet change: +40 Destinations on joining: 94 Destinations on joining: 90 Destinations on joining: 58 Destinations on joining: 40 Destinations on departure: 116 Destinations on departure: 76 Destinations on departure: 62 Destinations on departure: 46 Destinations change: Destinations change: -14 Destinations change: +4 Destinations change: +6 Flight growth: 36.6% Flight growth: (7.5%) Flight growth: 6.6% Flight growth: 56.6% Seat growth: 55.2% Seat growth: 5.0% Seat growth: 7.0% Seat growth: 81.6% ASK growth: 51.9% ASK growth: 19.0% ASK growth: 26.3% ASK growth: 153.4%

Notes: Schedules data compari- sons based on month of taking up position versus last instance of same month during chief executive’s time in role, or most appropriate point of compar- ison when tenure was short; fleet measured at beginning of month started and beginning of month of departure; fleet refers to in-service aircraft; “Started” BillyPix Southwest Airlines Muylaert Sebastien/Action Press/REX/Shutterstock refers to taking up the chief Hernan Rincon Bob Fornaro Franck Terner ‡ executive position; “Months in Avianca Spirit Airlines role” counts whole months only; the selection of chief executives Started: April 2016 Started: January 2016 Started: November 2016 is not intended to be exhaustive. * Departed: April 2019 Departed: December 2018 Departed: September 2018 Cirium schedules data does Months in role: 36 Months in role: 34 Months in role: 21 not go back to 1992 Fleet on joining: 84 Fleet on joining: 79 Fleet on joining: 312 ** Data covers Racaru’s second Fleet on departure: 89 Fleet on departure: 122 Fleet on departure: 305 stint as chief executive only. Fleet change: +5 Fleet change: +43 Fleet change: -7 He previously led the airline Destinations on joining: 80 Destinations on joining: 53 Destinations on joining: 195 between 2004 and 2009 Destinations on departure: 76 Destinations on departure: 67 Destinations on departure: 213 † During Saprykin’s tenure, Destinations change: -4 Destinations change: +14 Destinations change: +13 Rossiya integrated assets of Flight growth: (3.4%) Flight growth: 41.3% Flight growth: (0.8%) Donavia and Orenburg Airlines, Seat growth: 2.4% Seat growth: 52.1% Seat growth: 2.3% plus some aircraft ASK growth: 22.3% ASK growth: 56.6% ASK growth: 6.9% and services ‡ Data covers Air France main- line, plus Hop and

1 June 2019 | Airline Business | 11 Analysis

Graham Dunn London Uncertain outlook While the airline industry as a whole has been able to mostly retain its high profits altitude, there remain enough pockets of turbulence and clouds on the horizon to threaten the positive view ahead Matt Hartman/AP/Shutterstock Southwest Airlines was operating the largest fleet of Boeing 737 Max aircraft at the time of the type’s grounding in March this year

he climate in the industry’s quarter. Prolonged contentious grounding, but looking ahead to The region’s most profitable Tmost profitable region, North negotiations with its mechanics the full year chief executive Calin carrier – which is America, has been hit by several union led to thousands of flights Rovinescu says he is “encouraged not a Max operator – reported outside factors. Notably, US op- being scrapped, as aircraft were by strong booking trends entering operating profit up more than a erators faced a hit to bookings flagged for minor maintenance the busy summer peak”. fifth to just $1 billion. That was from the partial government issues. Weather disruptions also Despite the shadow cast upon on revenues some 5% higher. shutdown at the start of the year, resulted in the cancellation of an Air Canada’s first-quarter results while US and Canadian carriers additional few thousand flights, by the Max grounding, the carrier EUROPEan capacity have been among the hardest im- says the carrier is upbeat on the revenue contribu- While this remains one of the pacted by the grounding of Boe- American Airlines faced a tion from its C$497 million pur- most profitable periods for the ing 737 Max Jet in the wake of range of challenges in the first chase of the Aeroplan frequent European airline industry as a the Ethiopian Airlines’ fatal quarter, including the grounding flyer programme from marketing whole, the first six months of the crash on 10 March – the second of the Max. It took a $50 million and analytics company Aimia. year have remained challenging involving the type. hit to pre-tax earnings and antici- The transaction closed in January. for several carriers on the margins. Southwest Airlines was the pates a $350 million negative Air Canada has also since Flybmi, Germania and Wow largest operator of the type with impact to full-year earnings from struck a provisional deal to Air have all been among notable 34 in service, while American the grounding, as long as the type acquire the parent of Canadian lei- casualties during the first few Airlines and Air Canada are – returns to service in August. sure carrier Air Transat. months of 2019, to add to several together with China Southern In addition, the carrier tempo- Another Canadian Max opera- airline failures over the second Airlines – the joint second largest rarily removed 14 737-800s from tor, WestJet, reported first-quarter half of 2018. meanwhile operators with 24 of the type. service for modifications to inte- profits rose a third. That is found itself in need of hurridly The Max grounding was a fac- rior retrofit work resulting in despite the grounding of the Boe- reaching a deal with the Virgin/ tor in mixed results for these car- roughly 900 cancellations, and ing 737 Max that removed 13 of Stobart-led consortium to secure riers during the first quarter, but the combined schedule uncer- its aircraft from service and led vital funding, while the fate of was not the only consideration. tainty resulted in weak demand the airline to suspend financial remains unknown after The grounding of the 737 in March after a strong January guidance for 2019. further delays to its privatisation. Max propelled Southwest Air- and February. United Airlines executives Results among Europe’s big lines to its highest number of Total unit revenues increased maintain their financial targets operating groups also came cancellations since the Septem- just 0.5% year-over-year in the through 2020, even as they face under pressure the during the ber 11 terrorist attacks, with the first quarter – the lower end of its headwinds from the Max first quarter. Lufthansa turned a Dallas-based carrier scrapping initial guidance of flat to up 2% grounding – it operates 14 of the first-quarter group loss of €336 more than 10,000 flights in the in the period. type – and other issues outside million ($380 million) in terms first quarter. Air Canada has kept 24 737 of their control. of adjusted earnings. Operating Southwest’s grounding of its Max 8 aircraft in storage since The carrier is on track to profits before exceptionals fell 34 737 Max 8s proved to be a new grounding the fleet in March. The achieve its earnings per share tar- 60% at British Airways and Ibe- headache for the airline, which Star Alliance carrier suspended get of $10-12 this year, and $11- ria parent IAG during the first was already facing a slew of oper- the financial guidance for 2019 it 13 in 2020, chief executive Oscar quarter, while first-quarter oper- ational difficulties in the first posted in February after the Max Munoz says. ating losses more than doubled ❯❯

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❯❯ at Air France-KLM. pean aviation system” as a factor Higher fuel costs and the later in the group’s plans. timing of the busy Easter holiday Lufthansa Group finance chief season, which fell in the second Ulrik Svensson said his confi- rather than the first quarter this dent outlook was “based on the year, both contributed to the expectation that market-wide weaker performance compared capacity growth will moderate with the same quarter in 2018. significantly as many market But another factor cited by all car- players are refocusing on yields riers was capacity issues. again, rather than on volumes”. Air France-KLM chief execu- He links this to “memories of tive Ben Smith describes the first the disruption in summer last quarter as having been a “chal- year”, noting: “The resulting

lenging” period for the whole compensation payments are still Photography Ed Telling European airline sector, as a result fresh. Many competitors have European airline chiefs are braced for more summer disruption of “substantial” industry capacity taken a more cautious stance growth during what is an off-peak toward expansion.” drone chaos at London Gatwick however, as chief executive Vinay business period, which led to unit Low-cost giant blamed airport in December are among Dube, chief financial officer Amit revenue “pressure”. The group lower fares for a 29% drop in net the factors EasyJet cited as its Agarwal and other senior execu- plans to selectively grow capacity profits for the year to March 2019 first-half losses for the period tives resigned on 14 May. on its passenger network by 2-3% ending 31 March rose to £272 The challenging climate in compared with 2018. Transavia “Many competitors million ($348 million). The car- India also hit the results of other will continue to grow at a sus- rier retained its full-year profit carriers in the country. Notably tained pace of 9-11%. have taken a more guidance, however. India’s most profitable operator IAG is cutting its planned – IndiGo – and SpiceJet have capacity growth for the year to cautious stance Jet woes both just disclosed full-year 5.3% from 5.9%, with reductions Nowhere have challenges been losses for the year ending March. across its brands. IAG said while towards expansion” deeper nor higher profile than at Both, though, report improve- reporting first-quarter results that Ulrik Svensson Indian operator Jet Airways. ments over the second half and capacity had affected yield dur- Chief financial officer, Lufthansa Group The carrier’s mounting liquid- are among the carriers continu- ing the period. ity crisis – which took hold amid ing to expand in a bid to fill the Having last year signalled a toxic mix of competitive pres- void left by Jet’s grounding. plans to curb its own capacity to just over €1 billion, excluding sure, rising fuel costs and a weak While there remain strong finan- expansion this summer, Luf- its loss-making Lauda division. currency – ultimately forced it to cial performers in Asia – it was thansa is now forecasting full- While passengers increased by suspend operations in April. another positive year for Japan’s year growth of 4% for its network 7% to 139 million, the airline’s Efforts to revive its operations two big operators – several in the airlines and zero for Eurowings. income was affected by a 6% fall continue. Indian conglomerate region have flagged concerns. Svensson highlights “ongoing in average fare. Hinduja Group has confirmed Airlines Group cited capacity constraints in the Euro- Increased capacity and the that it is evaluating a potential a “challenging market environ- investment in defunct carrier Jet ment” and a surge in fuel costs Airways, as most of its fleet con- after its operating profit fell 31% to Climbing fuel costs add to concerns tinues to be repossessed by les- S$1.07 billion ($780 million) in the sors and banks. financial year ended 31 March. Oil prices have steadily climbed sit above the $70 level since April. It appears that SBI Capital Mar- Setting out its outlook for the across the first half of the year. The While that remains shy of the mid- kets, which is running the sale current financial year, SIA Group barrel price of Brent crude oil, to-high $80s price airlines faced process for the stricken airline, is acknowledges that “ongoing trade which began 2019 just above the last year, it does still signal higher accepting a wide range of propos- disputes and slowing economic $50 mark, has climbed to largely fuel costs for airlines. als in hopes that it can be sold to growth in key markets pose uncer- a new investor that is willing to tainty to the operating environ- Jet kerosene spot prices: world average revive the airline. ment”. Citing “supply risks in the 250 Etihad has publicly said that it oil market”, it warns also that would be willing to “re-invest” “fuel-cost headwinds may per- 200 in the carrier that it once held a sist”, although hedges should 24% stake in, but its commit- help mitigate the impact. 150 ment is highly conditional – Cathay Pacific Group posted an including having a suitable operating profit of HK$3.6 billion 100 Indian partner who would be ($459 million) in 2018, after two willing to provide most of the years of consecutive losses, as it 50 cash required. saw the positive impact from its

0 The SBI previously indicated transformation programme. Reve- that it had received one proposal nue rose 14% boosted by Jul Jul Oct Apr Oct Apr Apr Jan Jan Jun Jun Jan Mar Mar Feb Mar Feb Feb Nov Dec Nov Dec Aug Sep Aug Sep May May 2017 2018 2019 and two unsolicited bids for the increases in the passenger, cargo Source: ICIS Notes: Prices are world average=median of Europe/Singapore , but did not identify the par- and catering businesses. and US pipeline spot prices in US¢/gallon. ties involved. But chairman John Slosar notes Little of the airline remains, the business environment is ❯❯

14 | Airline Business | 1 June 2019

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❯❯ expected to remain challeng- ing in 2019, with the forecast ’ fleet revamp cut strength of the US dollar, and geo- its total A380 orders to 123 political discord and global trade tensions likely dampening pas- senger and cargo demand.

Brazilian blow As so often in recent years, it is developments in Argentina and Brazil that perhaps most dominate the Latin American market. All eyes have been on potential suit- ors for Avianca Brazil since the carrier filed for the equivalent of bankruptcy protection in Decem- ber last year. Local rivals Azul, Gol and LATAM Airlines Brazil have

all emerged as bidders. GUILLAUME HORCAJUELO/EPA-EFE/Shutterstock Restructuring efforts have been hampered by delays in various of airlines in our country over the in our customers, our partners and ­diplomatic isolation of Qatar in proceedings and are now further next few years.” our people,” insists group chief the region. Airspace to several sur- complicated by the Brazilian reg- The initiative has been ham- executive Tony Douglas. rounding states remains closed to ulator’s decision on 24 May to pered by challenging economic Etihad’s year-end fleet reached Qatar Airways, two years after the suspend the carrier’s operations. issues – notably currency pres- 106 aircraft following delivery of diplomatic spat erupted. After returning dozens of aircraft sures – which have been causing seven Boeing 787s and a 777 to lessors and slashing its work- headaches for local players. freighter. But it is undertaking a AFRICAn CONCERNS force by 900 employees, the air- comprehensive review of its While several carriers in the line has operated a skeletal net- GULF PRESSURES future fleet requirements, and region continue to battle with work to retain vital rights. After years of rapid growth, the first recently axed a substantial num- financial restructuring, the airline In Argentina, low-cost carriers half of 2019 has remained chal- ber of long-haul aircraft on order. sector in Africa has been over- continue to enter the market, lenging for the big Gulf carriers. Neighbouring Emirates has also shadowed by the fatal crash of an which has opened up amid liber- is still largely been revamping its fleet plans, Ethiopian Airlines 737 Max in alisation moves in the country. in introspective mode, as it con- notably its deal with Airbus in March. The Star Alliance carrier In April Chile’s fast-growing tinues to restructure the business February, which signalled the end has been the region’s most suc- low-cost airline JetSmart – albeit the challenges at India’s of production of the A380 aircraft. cessful and expansive carrier in launched its domestic operations Jet Airways mean it has been con- That deal saw Emirates cut its recent years, having expanded in Argentina. The carrier has sidering whether to invest again A380 order total from 162 to 123 under its own name and also positioned an initial fleet of three in one of its equity partners. aircraft – instead taking 70 Airbus through a number of joint ven- Airbus A320 aircraft in Argentina That would retain its invest- A330/A350-900s – prompting tures across the region. and is now the second operator at ment in Jet alongside its stakes in Airbus to announce it will cease continues to El Palomar, where low-cost pio- Air Serbia, Air Seychelles and deliveries of the A380 in 2021. work through its restructuring, neer Flybondi has been operat- Virgin Australia – after its high- Emirates also revealed a finan- while South African Airways ing. Another low-cost newcomer, profile exits from Air Berlin, Ali- cial hit in its full-year results, remains deeply submerged in its Norwegian Air Argentina oper- talia and Darwin Airline. albeit from a position of profits. turnaround efforts. Its chief exec- ates from Buenos Aires’ Aero- It has scaled back this invest- The Dubai carrier’s net profit fell utive Vuyani Jarana has parque downtown airport. ment strategy while focusing on by nearly 70% last year, to Dhs871 embarked on a restructuring During the JetSmart inaugura- tackling its issues closer to home. million ($237 million), a decline it aimed at weening the carrier of tion event, Argentina’s president Etihad turned in a $1.28 billion attributes to fuel, competition, and its dependence on state bailouts. Mauricio Macri said the “aviation loss for last year, although this currency-exchange effects. Outside the bigger state carriers, revolution” initiated by his gov- was an improvement on the pre- The airline states that it has it has remained a challenging ernment is a “huge success” that vious figure of $1.52 billion. faced “stiff competition” over environment. The low-cost model has created already 5,000 jobs in The Abu Dhabi-based carrier is 2018-19 and chairman and chief continues to struggle to embed the industry and many more pointing to an improvement in its executive Sheikh Ahmed bin itself. The most high-profile opera- indirect jobs. core operating performance, citing Saeed Al Maktoum says the year tor FastJet went to the wire to “For years, in order to protect a 3% reduction in unit costs has been tough. “Our performance secure funding to ensure it could [state-owned] Aerolineas Argen- despite higher fuel prices, and a was not as strong as we would continue to operate and remains a tinas, few people could travel by 4% increase in passenger yields. have liked,” he admits, adding relatively small operation. air because most of the capacity Etihad has been undergoing a that, along with the competition Nigerian government efforts to was controlled by a single air- restructuring and efficiency drive, and currency pressures, the establish a new flag-carrier for the line,” Macri says. and last year cut capacity by 4%, freight market “appears to have African state faltered just weeks “Now our challenge is to although its load factor still gone into reverse gear”. after a high-profile launch. Trans- ensure that Aerolineas remains slipped by two points to 76.4%. It adds to the difficult narrative port minister Hadi Sirika had sustainable [without subsidies]. “Our transformation is instill- facing the big Gulf carriers, which unveiled details of Nigeria Air at “We want to double the activity ing a renewed sense of confidence also include the continued the Farnborough air show. ■

1 June 2019 | Airline Business | 17 737 Max

lewis harper london Counting the cost of Max grounding The first financial figures since the mid-March loss of capacity show the forced fleet reduction has hit bottom lines

irlines have been outlining The airline managed to operate Athe financial impact of the 98% of scheduled flights from Boeing 737 Max grounding in the date of the grounding in the latest round of quarterly re- March to 30 April, by substitut- sults filings. ing the 737 Max with other air- The loss of some 368 in-service craft types. Max aircraft from the global fleet “All of the costs that relates to in mid-March only affected the the grounding and obviously our last two or three weeks of the discussions with Boeing will be three-month period reported on confidential,” Air Canada chief by most carriers. executive Calin Rovinescu said Nevertheless, the impact of the in early May. grounding has been a key theme Elsewhere, European travel for many operators, particularly firm TUI’s underlying operating

when they consider the outlook Drew/AP/Shutterstock Richard loss deepened in the quarter for what, in many cases, are the Southwest says it has been forced to cancel some 160 flights a day ended 31 March, as its airline and more critical second and third tour operator business suffered the quarters of the year, when sea- The grounding will continue to hit to pre-tax earnings after the greatest reverse within the group. sonal demand heats up. place pressure on Southwest’s cancellation of roughly 1,200 TUI reiterated that it is expect- Commentary from Asian Max costs in the second quarter. Unit flights in the quarter. ing a €200 million ($225 million) operators on the grounding’s cost excluding fuel, special items In addition, it temporarily impact on earnings from the financial impact has been rela- and profit sharing will rise 10.5- removed 14 737-800s from ser- grounding of its 15 Max aircraft tively scarce, although Bloomberg 12.5% in the second quarter, with vice for modifications to interior up to mid-July. That figure would has reported that Air China, China three points of the unit cost pres- retrofit work, resulting in roughly rise by a further €100 million Eastern Airlines and China South- sure attributed to the 737 Max 900 cancellations. The combined should the grounding extend to ern Airlines might be working cancellations, the airline says. schedule uncertainty resulted in the end of the summer season. together on a joint compensation weak demand in March after a Also in Europe, Norwegian claim from Boeing. Those carriers “The longer these strong January and February. expects to incur costs of NKr300- had 15, three and 24 Max aircraft American expects a $350 mil- 500 million ($35-58 million) over in service at their mainline opera- impacts last, the lion negative impact to full-year the second and third quarters of tions respectively at the time of pre-tax earnings from the ground- the year as a consequence of the the grounding. greater impact on ing, as long as the type returns to grounding of its 18 Max jets. Elsewhere, airlines have been service in August. It foresees the The Scandinavian low-cost more vocal on the financial capacity and CASM” cancellation of nearly 15,000 carrier’s chief financial officer impact of the grounding. Gerry Laderman flights through August. Geir Karlsen said the estimate Chief financial officer, United Airlines “We are confident that the was based on an assumption that SCRAPPED FLIGHTS Max will be recertified by 19 the Max jets would not be back in Southwest Airlines was the big- August,” said Robert Isom, presi- service before August. gest Max operator at the time of Southwest has cancelled all dent of American, as the carrier Karlsen declined to give a the mid-March suspension, with flights operated with the 737 Max announced its quarterly results. breakdown of the costs, saying 34 of the type in service. In the until 5 August, scrapping around The airline reported headline Norwegian is in discussions with first quarter, the carrier says it 160 flights daily. earnings growth in the first quar- Boeing over the financial impact experienced its highest level of The grounding of the 737 Max ter. Operating revenue increased of the grounding. cancellations since the Septem- impacted close-in, high-yield 1.8% to $10.6 billion while oper- ber 11 terrorist attacks, scrapping bookings in April, even as it ating expenses increased 2% to cutting losses more than 10,000 flights. expected to see a unit-revenue $10.2 billion. Its operating profit The airline cut its operating loss The cancellations, combined benefit due to lower capacity, decreased 5.4% to $375 million. by more than 30% to NKr1.46 bil- with the US government shut- Southwest adds. It expects Fellow North American opera- lion in the first quarter. Revenues down and softness in leisure reve- ­capacity in the second quarter to tor Air Canada meanwhile rose 14% to NKr8 billion. nue trends, resulted in a negative fall by 2-3%, and in the full year reported record first-quarter oper- The Oslo-based carrier has revenue impact of more than $200 to grow only 2-3%. It had earlier ating revenue for the period end- made changes to its scheduled million and reduced first quarter planned to grow seats by more ing 31 March, despite the ground- services and contracted in wet- net profit by $150 million. than 5%. ing of its 24 Boeing 737 Maxes. lease partners in order to support Overall operating revenue at American Airlines, with 24 The Montreal-based airline its operations. Southwest grew 4.1% to $5.15 Max 8s in service at the time of posted C$4.45 billion ($3.3 billion) Chief executive Bjorn Kjos billion in the period, while the the grounding, similarly faced in operating revenue, up 10% says Norwegian expects to oper- airline’s operating profit slid by challenges in the first quarter. year-on-year. Its operating income ate its schedule as planned this 18% to $505 million. The carrier took a $50 million rose 47% to C$127 million. summer. He says the carrier is ❯❯

18 | Airline Business | 1 June 2019

737 Max

❯❯ experiencing less disruption Gerry Laderman, chief financial from the Max grounding than it officer of United. did when a number of its 787s United’s first-quarter operating were taken out of service last year revenue increased 6.2% to $9.59 amid issues with their Rolls- billion, while operating expenses Royce Trent 1000 engines. increased 3.7% to $9.09 billion, This is because it is easier to resulting in an operating profit of replace a Max jet’s seat capacity $495 million that was nearly with alternative aircraft than is the double the same period in 2018. case with a 787, Kjos explains. United Airlines executives sound planning have meanwhile maintained Back in Canada, WestJet’s profit their financial targets through rose 33% year on year in the first 2020, despite facing headwinds quarter, despite the grounding of

from the grounding and other the 737 Max removing 13 of its Boeing issues outside of their control. aircraft from service and causing Gol suggests its small Max fleet shields it from the worst impacts This confidence comes even as the airline to suspend financial the carrier’s fleet of 14 737 Max 9 guidance for 2019. ­aircraft in the airline’s fleet, has ­expectations for the 737 Max. aircraft remain grounded. The higher net earnings of maintained 96% of system capac- While Boeing is slowing pro- In addition, the continued C$45.6 million for the quarter ity, Sims says. duction, has not suspension of United’s flights to ending 31 March reflect progress The airline notes that there adjusted its fleet projections in its Delhi from Newark through 2 on the Calgary-based airline’s will be no formal guidance for first-quarter performance update. July due to the closure of air- strategic plan, said WestJet chief 2019 because the grounding of It has taken five Max jets so far space over Pakistan are drags on executive Ed Sims in early May. Max aircraft “is making things a this year, taking its fleet of the re- capacity and unit costs (CASM). Revenue took a hit during the little more difficult to predict”. engined type to 12. “The longer these impacts final 18 days of the quarter, but Despite the uncertainty around The airline plans to receive a last, the greater impact on contingency planning, including the grounding, Turkish Airlines total of 12 Max 8s and five Max [capacity] and CASM,” says scheduling flights on other is maintaining its delivery 9s in 2019 – giving it a respective ❯❯ FAA reticent to offer return-to-service date as Boeing works on final MCAS fix The US Federal Aviation Adminis- investigation by US Department tration (FAA) said on 23 May that it of Transportation’s Office of is too early to commit to a date for ­Inspector General. when the Boeing 737 Max will re- The FAA also established a turn to service. Joint Authorities Technical Re- “I’m not going down the time- view (JATR) panel to study the table route. The only timetable 737 Max’s flight control system we have is the analysis that says and a Technical Advisory Board the Max is good to fly and safe to (TAB) to examine Boeing’s MCAS fly,” acting FAA administrator software fix. Dan Elwell said following an Elwell was grilled Meanwhile, Boeing an- eight-hour meeting in Fort Worth by US lawmakers nounced earlier in May that it had

with aviation regulators from Susan Walsh/AP/Shutterstock completed the software upgrade more than 30 countries. for MCAS, and was working to “It is the one thing that we oversight of both Boeing and the edly on concepts like “safety-criti- provide “additional information” can’t be nailed down to. Because troubled 737 Max. cal systems” and “single points” to address FAA requests includ- the last thing I want is to put a Elwell sat before a House Trans- of failure. ing “additional detail on how pi- date out there and have any- portation Committee panel on 15 Was the 737 Max’s MCAS safe- lots interact with the airplane body, either the FAA or you or May. He expressed confidence in ty critical, one lawmaker asked. controls and displays in different the public, drive to the date in- the FAA’s certification work, but “It seems to me that, yes, it is,” flight scenarios”. stead of the end result or the pro- conceded pilots should have Elwell replied. Boeing was not immediately cess,” says Elwell. known more about the 737 Max’s Why, then, did the FAA ap- able to provide a timeline for Airlines around the world have manoeuvring characteristics aug- prove a system that can cause the when it expects to submit the varying projections on when their mentation system (MCAS), the aircraft to dive based on one faulty final MCAS package to the FAA 737 Max aircraft will resume flight control software implicated angle-of-attack (AOA) indicator? for approval. flights. US carriers have removed as a factor in two 737 Max crashes. Elwell responded that pilots can Boeing has said the update the type from their schedules “When I first heard of this, I counter MCAS by using a checklist will make MCAS rely on two AOA through July or August, while thought that the MCAS should have they should have in memory. indicators and prevent the type other airlines expect the ground- been more adequately explained… The hearing came two months of rapid stabiliser movement that ing to be lifted earlier. in the manual,” Elwell says. “There into the 737 Max grounding and occurred in the final minutes of Earlier in May, US lawmakers should have been more text in the amid several high-level related in- two crashes of the 737 Max jets had grilled Elwell with questions manual about MCAS.” vestigations, including congres- operated by Lion Air and Ethiopi- about the FAA’s certification and His comments hinged repeat- sional reviews and a certification an Airlines.

20 | Airline Business | 1 June 2019

737 Max

Several customers talk of Max alternatives, but short-term options are limited As Boeing works on its return-to- Max orders, so is arguably the flight plan for the 737 Max, cus- most exposed amid the pro- tomers have voiced doubts on gramme’s current uncertainty. their long-term commitment to Chief executive Gary Kelly has not the type. ruled out a change from the carri- There has been talk of terminat- er’s single-type policy. ing existing orders and veiled Speaking to CNBC TV in April, threats of a switch to the Airbus Kelly said: “We’re an all-737 carrier. A320neo family. Some observers That’s who we are, that’s where we view these as a ploy in negotia- are. That doesn’t mean we’ll be an tions over compensation for the all-737 carrier into perpetuity. But grounding, or as posturing from that’s where we are right now.” airlines intent on reducing capital expenditure. But with single-aisle lOST confidence

production backlogs effectively meanwhile Boeing sold out for many years, existing confirmed to FlightGlobal imme- ’s parent says it is “keeping options open” on orders Max customers have little alterna- diately after the Ethiopian Max tive but to ride out the storm. accident on 10 March that it Rob Morris, global head of consul- and necessitate a consequent Sheikh Ahmed bin Saeed Al planned to cancel its 49 Max or- tancy at Ascend by Cirium. Airbus f­urther response from Airbus”. Maktoum, chief executive and ders, potentially ­converting them has indicated it has virtually no Meanwhile, the Max ground- chairman of Flydubai parent Emir- to another aircraft type. near-term delivery slot availability, ing and suspension of deliveries ates Group, told CNBC TV that – But Rusdi Kirana, founder of and Cirium’s Fleets Analyzer indi- have begun to positively influ- with “nearly 100” Max jets on order major Max customer Lion Air, has cates that open positions owned ence ­values of the earlier 737NG, – “I have to look into a similar sort been most outspoken on the topic by operating lessors in 2019 and says FLY Leasing chief executive of aircraft… from Airbus – could be so far, venting his anger at how 2020 are few and far between. Colm Barrington. the A320 or A321. We have that Boeing had behaved following the He considers it unlikely that Air- “There is some positive impact option and we will always demand airline’s 737 Max 8 crash on 29 Oc- bus will increase output in re- on NGs…and certainly in the case that we should be compensated. tober 2018. He told FlightGlobal sponse, adding that he believes of the Jet Airways aircraft, we had It’s not about cancelling [the Max late last year that he intended to the European airframer “will be no difficulty in finding new homes order] but I have to keep my op- cancel its entire Boeing orderbook, sensitive to making any moves for them very quickly,” he says. tions open and talk to Airbus.” which totals almost 190 aircraft. which could destabilise the Neo/ AerCap chief executive Aengus Southwest Airlines operates an “I just don’t want to deal with Max market share fundamentally, Kelly believes it is too early to all-737 fleet comprising over 750 somebody with no respect,” since that could precipitate some ­predict what effect the current NG/Max aircraft and has the larg- ­Kirana said. competitive response from Boeing, ­situation could have on 737 Max est fleet of grounded Max jets For Max customers, there is little which could then negatively impact values but that any long-term (34). It holds an additional 249 alternative than to sit tight, says the A320neo production life-cycle damage is unlikely.

❯❯ year-end fleet of 19 and five The airline saw its operating earnings call that Copa would enue rose 0.5% year-on-year to respectively – unchanged from profit fall 16% to R506 million. be raising its guidance if not for Ps16.4 billion. figures in its full-year financial Citing the smaller number of the grounding. Aeromexico’s grounding of its statement published about a week 737 Max aircraft in Gol’s fleet, Operating profit at Copa fell six 737 Max 8 aircraft in March before the grounding. chief executive Paulo Kakinoff 23.6% to $113 million in the first added to the difficulties faced by Turkish Airlines turned in an says the impact to the airline is quarter, as revenue declined 6% the airline during the first quarter. operating loss of $203 ­million for “much lower” compared with to $672 million. Operating The flag carrier is estimating a the first quarter, and a net loss of that experienced by other carriers. expenses were down 1.4% to revenue loss of Ps200 million $229 million, without specifying Panama’s has $559 million in the period. from the grounding. if the grounding of the Max con- reduced its 2019 capacity growth Elsewhere, the grounding of Icelandair Group meanwhile tributed to those negative figures. by a point following the grounding the Max compounded already saw its pre-tax loss for the period Revenues for the three-month of its six Boeing 737 Max 9 jets. challenging times for Aeromex- reach $68.5 million, deepened period to 31 March 2019 stayed The Star Alliance carrier plans ico, as the SkyTeam carrier came by 57%, as the grounding added flat at $2.77 billion, while the air- to raise capacity by just 1% this out of a loss-making first quarter. to the burden of fare pressure. line recorded a 7.6% increase in year, down from 2%. It is main- The airline says it will rede- Icelandair Group revenues were operational costs. taining operating margin guid- ploy US transborder capacity in down by 7% to $248 million. In Latin America, Brazil’s Gol ance of 12-14%. Copa reported a the second quarter, as part of The company says the estimated a revenue impact of R40 margin of 13% in 2018. what would be a minimal grounding of its six 737 Max air- million ($10.1 million) to the end growth year. craft cost it around $3 million of April from the grounding of its Negative impact For the first three months of during the quarter. “[Icelandair seven Boeing 737 Max 8 jets. While the airline is not provid- 2019, Aeromexico reported an Group] has initiated discussions Gol’s operating revenue rose ing a financial estimate of the operating loss of Ps377 million with Boeing regarding compen- 8.3% to R3.21 billion in the first impact of taking its Max 9s out ($20 million), compared with an sation for all the financial loss quarter, as operating expenses of service, chief executive Pedro operating profit of Ps24 million resulting from the suspension,” increased 14.5% to R2.7 billion. Heilbron said during a May in the same period in 2018. Rev- it states. ■

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ellis taylor perth Changes afoot at Korean operators ’s flag carrier and Asiana both get new chief executives amid turbulent internal issues and new competition

ocked by separate crises in stake in the airline up for sale to R recent months, Korean Air secure more debt funding from and are both fac- its biggest creditor, state-backed ing several new challenges that Korea Development Bank. could lead to fundamental It is unclear when the sale changes at the carriers. will take place, nor how much it The sudden death of Korean is likely to sell for. Most ana- Air chairman Cho Yang-ho in lysts expect that it may be sold April, just over a month before he to another Korean conglomer- was due to host the IATA annual ate, but few have publicly general meeting, has thrust his shown any interest. son and the airline’s president, Although the Asiana sale is “Walter” Cho Won-tae, into the being triggered by financial is- leading position. sues at Kumho, the airline itself But before then, the Cho fami- has been navigating more turbu- ly, which controls the airline lent skies this year.

and the wider Hanjin Group A disagreement with its audi- Commons byeangel/Creative conglomerate, had faced years of tors over its treatment of lease, Both carriers have reduced first-class service across their networks intense scrutiny. The 2014 “nut maintenance and other provisions rage” incident involving Cho led to a re-stating of its 2018 net to reduce first-class provision them out of Asiana and Korean Hyun-min, the eldest of the Cho loss to W26.2 billion ($22 million) across their networks. Air’s key markets. family’s daughters, resulted in a from W24.8 billion. Chief execu- Korean Air is suspending first , however, could criminal prosecution. Since tive Park Sam-koo resigned over class on 27 routes from 1 June, provide more disruption to Asi- then, a raft of allegations against the matter in late March. largely across long-haul services ana and Korean Air, with its other members of the Cho family That resulted in president Han to Europe, North America and focus on operating as a hybrid have surfaced, including against Chang-soo being elevated to the most routes within Asia. carrier on long-haul routes. Yang-ho himself, who was in- chief executive role, and soon The decision by Cho junior is Founded by former Jeju Air dicted on charges of embezzle- after he announced that the carri- something of an about-face, given ­president Kim Jong-cheol, the ment in late 2018. er would cut routes and aircraft, in September 2018 he told Flight- company has attracted an and sell assets to improve its li- Global that there was still a mar- ­impressive W165 billion of VOTE AGAINST quidity and boost its credit rating. ket for first class. committed­ funding from a varie- That tide against the Cho family While he stressed that the carrier Asiana, meanwhile, will cease ty of pension­ funds, private eq- came to a head in April, when had not had its ratings downgrad- first-class service on its Airbus uity and other institutional in- Cho senior failed to secure share- ed, he noted that key lenders had A380s from 1 September. vestors. It has selected the holder backing for a new three- placed it under scrutiny. The Star Alliance carrier also Boeing 787-9 as the sole aircraft year term as a director of Korean announced the first of its flight in its fleet and committed to Air. In large part, that was due to As major shifts are cuts. From 8 July, it will suspend lease three of the type, due to be the airline’s second-largest share- services from Seoul Incheon to delivered in 2020. holder, Korea’s National Pension occurring internally Delhi, Khabarovsk and Sakhalin, Service, voting against it. while Chicago will be axed from ROUTE PLANNING Until then, Cho had been on at the two largest 27 October. Air Premia has signalled that Los the airline’s board for 27 years. airlines, the market As major shifts are occurring Angeles and San Jose services are However, at the time, Korean Air internally at the two largest air- expected to start in 2021, with told FlightGlobal that it would is also changing lines, the market is also changing Cairns, Honolulu, Munich and not affect his roles as chief execu- beneath them. Vancouver as other destinations it tive and chairman of the airline. beneath them Following years of resistance, plans to launch in future years. That point became moot less Korea’s transport ministry ap- Added to that, the fast-growing than two weeks later when Ko- proved applications from start-up existing independent carriers Jeju rean Air announced that Cho Then, in late April, Asiana ap- carriers seeking air transport li- Air and T’way Air have signalled had died in a US hospital. Wal- peared to be given a lifeline, with cences in March – Aero K, Air major expansion plans ahead, ter Cho has now been appointed Seoul’s finance ministry an- Premia and Fly Gangwon. with T’way looking to add wide- as chief executive and chairman nouncing a W1.6 trillion capital Aero K and Fly Gangwon will body aircraft to its fleet in future. of the company. injection for the carrier from its both be based at regional airports So while Korean Air and Asi- While not as dramatic, rival creditors, led by KDB. – and Yangyang ana are facing their own internal Asiana is potentially facing its Meanwhile, despite Han and ­respectively – for at least three shifts, the threat of new competi- own tectonic shift after parent Cho having been in their roles for a years and will focus on tion will add more pressure to company Kumho Industrial matter of weeks, both Asiana and ­short-haul international servic- their relatively new chiefs in the agreed in late April to put its 33% Korean Air moved independently­ es. That should largely keep next few years. ■

1 June 2019 | Airline Business | 25 Asia

Ellis Taylor Perth y the end of 2020, South B Korea could legitimately Low-cost takes hold in Korea claim that it has one of the highest concentrations of low- A raft of planned start-ups in the country are joining several operators already cost carriers in the world, with expanding their footprints in what could become a very crowded market three new players cleared to enter the market. Aero K, Fly Gangwon and Air Premia were awarded air carrier permits in March, giving them a year to obtain their final clearances before they commence operations. It has been a long road for Fly Gangwon and Aero K espe- cially, as both carriers have had their applications rejected in the past, mostly over the trans- port ministry’s fears that the market could overheat. However, a change in licensing criteria in late 2018 meant that the Jeju Air’s current fleet is ministry no longer considered the based around 737NGs make-up of the market as part of Commons lasta29/Creative its decision-making process, clear- ing what appeared to be the last The new carriers will, at a high T’way. The Seoul-based carrier but plans to increase that to six major hurdle to licensing those level, be entering a crowded mar- was planning to take delivery of by the end of 2018 were scup- two proposed budget carriers. ket, which is already home to four 737 Max 8s this year via les- pered due to Seoul taking regula- As part of their conditions, three independent budget air- sors, five in 2020 and four more tory action against the carrier for Aero K and Fly Gangwon will be lines, and three aligned to the the year after that. a series of safety issues. Nonethe- confined to operating routes from two legacy carriers. In an investor presentation less, those two jets may still be their bases at Cheongju and Yang- Jeju Air, T’way Air and Eastar released in December, T’way high- phased into the fleet this year. yang for three years before Jet have been growing at a steady lighted that the longer range of the Rather than use the 777s to expanding further. clip in recent years, riding the Max 8s would allow it to launch build up new routes, Cirium Aero K will be entering some- initial wave of inbound Chinese new service to Southeast Asia. schedules show that Jin flies what contested waters, with tourism until a diplomatic spat in The presentation showed that Sin- them mostly on established lei- Cheongju already well served by 2016 curtailed that market. gapore, Kuala Lumpur and sure routes, such as Honolulu, three low-cost carriers – , Despite the blow that was to the Phuket are the most likely routes, Phuket and Guam, which and Jeju Air. Cirium Korean market, they were able to but gave no other details. appears to show that they largely schedules data for May shows pivot capacity to Southeast Asia T’way also had plans to take 10 complement Korean Air’s net- that collectively they account for and Japan to take advantage of of the larger Max 10 variants work. They have also been 71% of ASK capacity from the strong outbound demand from between 2022 and 2025, but it is deployed on shorter routes to airport and operate two-thirds of Korea, aided by a steady domes- not clear how the grounding will Japan, and the Philip- the 770 flights there. tic market. affect those. pines, alongside Jin’s 737 fleet. By comparison, Fly Gangwon’s Further to that, the carrier has Interestingly, South Korea’s Yangyang base only hosts one BOEING FLEETS signalled that it plans to add wide- other major carrier, Asiana Air- scheduled route – a thrice- All three carriers’ fleets are based body aircraft to its fleet in 2023. lines, has not signalled any plans weekly service to Kitakyushu on the Boeing 737NG, and until It is unclear which routes are to extend its low-cost brands, Air operated by Korea Express Air the groundings of the type in being targeted, but it appears and , into the using an Embraer ERJ-145. March, were starting their transi- that the larger jets will be pri- long-haul market. Nonetheless, Air Premia, meanwhile, is set tions towards the 737 Max. marily targeted at flying on long- any traction by T’way or Air to leapfrog the low-cost carriers Eastar Jet was first cab off the haul routes, with North America Premia in the long-haul market and launch in the second half of rank, which took delivery of its and Europe believed to be high could spur Asiana to move one of 2020 as a hybrid, long-haul first 737 Max in December 2018, on the agenda. the brands in that direction, even focused airline that will compete and had two operating alongside Still, T’way will be beaten to the if only to defend the parent carri- largely with Korean Air and Asi- 16 737-800s, two -900ERs and one punch by new “hybrid” long-haul er’s position. ana Airlines. -700 before the March groundings. carrier Air Premia, which is plan- Air Seoul is one of the later In March, it signed to lease That delivery came a month ning to start services in early 2020. carriers into the market, having three Boeing 787-9s from Air after Jeju Air placed a firm order Neither carrier will have total only launched in July 2016 with Lease that will be delivered from for 40 Max 8s and options for 10 reign of the long-haul market, the express purpose of taking 2020. It has signalled that Los more. The firm-order jets are with Korean Air’s budget affiliate over some of Asiana’s less profit- Angeles and San Jose will be its scheduled for delivery from 2022 Jin Air already operating able routes. It operates seven first long-haul destinations; how- through to 2026. medium-haul services using 777- A321s, mostly on routes from ever, it is likely to launch some But the biggest fleet develop- 200s passed down from the flag- Seoul to secondary points in shorter services initially. ment plans have been put out by carrier. It has four in its fleet now, Japan and Southeast Asia. ■

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Thai slipped back into the red in 2018 on higher costs James Marsh/BPI/Shutterstock

Greg Waldron Singapore slowed ’s economy. In the first quarter, the Bank of Thai- hai Airways International Thai eyes renewal land noted several challenges, Thas renewed its effort to ob- including slowing exports, tain permission to buy new air- Star Alliance carrier makes a fresh push to revamp an weaker private investment, and a craft and has even beefed up its ageing fleet with proposal to add up to 38 aircraft as marginal contraction in foreign hoped-for order. airline’s long-standing turnaround efforts continue tourists – particularly those com- Whatever Thai’s challenges, ing from China. the airline has generated positive More specifically, the cabinet headlines recently. These focus willing to approve Thai’s Bt156 12 A350-900s, and six A380s. may balk at Thai’s swinging to a not on its business performance, billion ($4.9 billion) plan. The 787 fleet, however, contin- 2018 operating loss of Bt9 billion but on the Cinderella tale of a for- If approved, within five years ues to be plagued by issues with from a Bt2.9 billion profit a year mer Thai flight attendant who 31 new jets would replace exist- its Rolls-Royce Trent 1000 earlier. Although revenue rose by married the nation’s new mon- ing aircraft. A second phase engines. Fleets Analyzer shows at 3.9% year on year to Bt200 bil- arch, King Vajiralongkorn, just would see seven additional air- least four of these aircraft in stor- lion, expenses jumped 10% to prior to his coronation on 4 May. craft enter the fleet. age. The Post story indi- more than Bt208 billion. Higher The bride’s rise from obscurity While Thai’s dreams of a new cates that eight of Thai’s aircraft fuel prices, as well as increased to prominence and the sudden- fleet have been on the cards for are grounded, but does not spec- aircraft leasing, maintenance, and ness of the wedding surprised years, the 38-aircraft number ify which types. depreciation charges, all con- Thailand’s royal watchers – and marks a significant increase from While the 787s and A350s are spired to push costs up. added a dash of romance to the the 22-23 jets the carrier had new, at least 25 aircraft are proba- In the first quarter of this year start of the new King’s reign. hoped to have approved previ- bly in need of replacement. Most Thai posted an operating loss of Arguably less surprising is ously. The earlier fleet plan urgently, the carrier’s seven 747- Bt828 million, as weaker passen- another story, carried by the called for one-third of the jets to 400s are an average of 19.7 years ger yields reversed its previous Bangkok Post, in which the carri- be widebodies, and two-thirds to old. And apart from 14 777- profit of Bt2.72 billion for the er’s president, Sumeth Damrong- be narrowbodies. It is not clear if 300ERs with an average age of same period last year. chaitham, says Thai still hopes to this ratio will be retained for the five years, the average age of the gain cabinet clearance for a upgraded plan. 18 “Classic” 777s is 17.6 years. WIDER CHALLENGES much-needed fleet upgrade. The carrier’s broader turna- Thai Smile is in somewhat bet- The cabinet may also consider The government still has round plan, which also touches ter shape, with 20 A320ceos aver- the challenges facing peers such majority ownership of Thai, with on network development and aging 5.3 years old. Fifteen of the as Garuda Indonesia, a 51% stake. reducing costs, has been on the aircraft are leased and five man- Airlines and Philippine Airlines, The 6 May report suggests the table since 2015. aged directly by Thai. all of which continue to struggle airline is looking to order or lease Still, an infusion of more with rampant low-cost competi- up to 38 narrowbody and wide- AGeING FLEET ­modern narrowbodies would tion on international and local body jets. What is clear is that Thai does improve fuel efficiency and allow routes, as well as various struc- The timing coincides with the need to revamp its fleet. Cirium’s the commencement of long, thin tural costs. Less sentimental conclusion of the country’s long- Fleets Analyzer shows that the routes to key North Asian mar- types could even conclude that awaited national elections. The airline has 76 in-service wide- kets such as Japan. perhaps governments should stay conclusion of the polls should bodies of six types. While Thai Airways Interna- out of the airline game. presage a period of stability in It operates seven Boeing 747- tional’s need is as clear as ever, Thai clearly needs a fleet which Thailand’s military junta, 400s, 32 777s of four variants, six several factors may give the coun- refresh, but fairy tale endings are which won the majority of seats 787-8s, and two 787-9s. From try’s leaders pause for thought. rare enough with people – and and the premiership, may be Airbus, it operates 15 A330-300s, Political uncertainty has even rarer with airlines. ■

1 June 2019 | Airline Business | 29 Asia

said this for 10 years and then we Mavis Toh Shanghai managed to set up Jixiang.” Jixiang, which means auspi- cious, is the airline’s Chinese International name and how it is known in the China market. Its official English thinking name is Juneyao Airlines. LISTING landmark Eldest brother Junyao did not live to see the launch of the group’s own scheduled airline, as he was taken by stomach cancer in 2004 at just 38 years old. Junjin took over as chairman of the growing conglomerate, with youngest brother Junhao as his deputy. Under the leadership of Today, the Juneyao Group has chairman Wang Junjin, businesses in five main sectors – Shanghai-based Juneyao has aviation, consumer, technology, built its business in the Chinese education and financial services. domestic market, but is now The listing of the airline business making a move further afield in 2015 also raised 50-year-old Wang and his family to billion-

Bryan van der Beek aire status. Forbes puts his net worth at $1.1 billion, ranking him ingapore Airlines’ attempt to listed on the Shanghai Stock The airline will “soon” cross 357th on its 2018 China Rich List. Stake a stake in China Eastern Exchange. It also has a low-cost the 100-aircraft mark, with the For the airline, the primary Airlines in 2007 is well docu- arm based in Guangzhou called 9 as its core focus is expanding internation- mented, but few people are Air, which flies 18 Boeing 737s. narrowbody fleet and the 787 its ally. Wang concedes that at pre- aware that the Star Alliance car- Besides , it is the only widebody type. Exactly sent Juneyao still has a relatively rier originally intended to enter other sizeable private carrier in a when is hard to say because air- low profile outside of its native that market through a much lucrative Chinese market which craft inductions still need to be China as a result of its limited smaller, private player in the is still largely dominated by state- approved by the Chinese regula- international network, which country: Juneyao Airlines. owned airlines. tor. Wang stresses that the ulti- spans only 11 points across A preliminary deal had even mate aim is not for Juneyao to Japan, South Korea, Thailand, been signed for SIA to take a 25% GROWTH PHASE grow tremendously in size, but and Singapore. stake in the carrier, which was in Having firmly established itself rather to have a strong brand Juneyao will launch its first the midst of applying for an oper- in the Chinese domestic market, which will sustainably last intercontinental service to Helsinki ating permit, recalls Juneyao the airline last year entered its through the generations. in June, and start services to Mel- chairman Wang Junjin. next stage of growth, expanding Even though Juneyao started bourne later this year. It is seeking But China Eastern got wind of internationally with the delivery flying only in 2006, it was not a rights to fly to London, Cairo and SIA’s plans when Wang declared of its first widebodies – brand- complete newbie. Wang and his , all within the year. the matter to the Chinese regula- new Boeing 787-9s. two brothers – Junyao and Jun- While China Eastern has rights tory authorities, and subse- Wang’s aim has always been hao – started the Juneyao Group to most of the blue-chip interna- quently approached the Singa- for Juneyao to become an interna- in 1991. The same year, it ven- tional destinations from Shang- pore flag carrier for a partnership. tional airline. This is precisely tured into charter services, oper- hai, Wang believes that there are “SIA came and apologised to why he insisted on setting up a ating domestic routes that catered still untapped opportunities. us because we had already signed base in Shanghai, even when the to the business community, ini- “From Shanghai, there are still an agreement. They told us the Civil Aviation Administration of tially out of Wenzhou. many destinations not yet situation and we said that it’s China had urged it to operate out “We found it very meaningful. opened, including points along okay, we can’t force it,” Wang of Hangzhou, since Spring Air- We were building bridges in the the Belt and Road Initiative. said in Mandarin during an Air- lines was already a player in Chi- sky, providing convenience to There are also points in Europe, line Business interview at the na’s financial centre. Standing the community.” North America and Africa. But Juneyao International Plaza in fast on being headquartered in The brothers were, however, for us, the routes we open must downtown Shanghai – a building Shanghai delayed Juneyao’s quickly frustrated because each be profitable. This is the most owned by the group. launch for six months. time they successfully built a important,” he says, adding the “Now as we look back, SIA “This was very important. Our route and turned it profitable, airline is “in no hurry” for more must be feeling quite regretful aim is to become an international scheduled airlines would take it long-haul launches and will not that it didn’t invest in Juneyao company and Shanghai is a good back for their own operations. “fly for the sake of flying”.■ Airlines,” he adds. harbour,” he says. “We kept building and cultivat- His sense of vindication is “So we’re in China, in Shang- ing routes for others, absorbing all This is an extract from a wider understandable. Today, mainline hai. We have the time. It’s only a the risks and when it’s done, they interview that was originally pub- Juneyao operates a fleet of 71 jets, matter of time before we become take it back. That’s why I said: ‘We lished in Airline Business. Visit: is consistently profitable, and is a big airline.” should start our own airline.’ I flightglobal.com/AirlineBusiness

30 | Airline Business | 1 June 2019

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Read FlightGlobal’s commemorative Airbus at 50 special report now

1 June 2019 | Airline Business | 33 INTERACTIVE

PODCAST Awards winners selected

udging is now complete for Jthis year’s Airline Strategy Awards, which takes place on 14 July in London. And as the big day approaches, FlightGlobal is delighted to wel- come Collins Aerospace as the lat- Talking points est sponsorship partner. Collins, a Make sure you subscribe leading provider of intelligent so- to the Airline Business lutions to the aerospace and de- Podcast. Executive editor fence sectors, joins existing spon- Graham Dunn and manag- sors CFM International, Tampa ing editor Lewis Harper are International Airport and Volantio. joined every month by As ever, the winners have been

journalists from our global picked by a team of high-profile Lewis Harper/FlightGlobal team to discuss the latest judges from the industry, who The judges made their final decisions during a mid-May meeting industry developments. gathered in the UK capital for a FlightGlobal team mem- meeting in May, hosted by event ed out on the night, alongside a Last year’s winners included bers also dial in to debate partner Korn Ferry. They decided new award for Diversity in Lead- Calin Rovinescu of Air Canada, key topics and talk through on the recipients across six catego- ership. Both categories are judged Ajay Singh of SpiceJet and Dimi- the latest chief executive ries: Executive Leadership, Sector separately from the main awards. trios Gerogiannis of Aegean Air- interviews. You can sub- Leadership, Low-cost Leadership, This year marks the 18th run- lines. Other awards went to Azul/ scribe via the Apple or Finance, Marketing and the new ning of the awards and the third TAP Air , Air New Zea- Android app and the pod- Digital Innovation award. time Airline Business has part- land and . The cast is also available to lis- The judges were asked to nered with Korn Ferry, a leading Airline Business award was hand- ten to via web browsers choose from a list of nominations human capital management firm. ed to Aengus Kelly of AerCap. using Soundcloud. that was drawn up after several July’s invitation-only ceremo- To find out more, including in- flightglobal.com/ months of deliberation and in- ny takes place at the Honourable formation about attending and ABpodcast depth research. A special Airline Artillery Company in London’s sponsorship opportunities, visit: Business award will also be hand- financial quarter. strategyawards.com

Keep up with Paris latest conference Airlines 2050 lightGlobal is gearing up to Airlines 2050 is a landmark Fprovide full coverage of one-day summit organised in mid-June. jointly by FlightGlobal and Much has changed since the partners Airlines UK, Board 2017 show. Two years ago in the of Airline Representatives French capital, a buoyant Boeing in the UK (BAR UK) and launched the 737 Max 10, while its IATA. The London event big competitor Airbus was touting will take place on 17 enhancements to the A380. October, bringing together A large team from our global key UK aviation stakehold- offices will be on site in Le Bour- ers and international air- get this year, generating real-time lines serving the UK. news and four issues of Flight Participants will include

Daily News, distributed each day Rolle Pool/SIPA/REX/Shutterstock C-level speakers from during the event. French president Macron toured the show site last time around ­major UK and international Flight Daily News will be carriers, to give an insight packed with the latest news and The show will take place at the Among the attendees in 2017 into what is driving the lo- photography from Paris, while Le Bourget Parc des Expositions was French president Emma- cal airline sector, and how it our online channels will carry up- from 17 to 23 June, bringing to- nuel Macron, who flew into Le can stay competitive in a to-the-minute stories and analysis. gether players from the global in- Bourget on a French air force fast changing and evolving Our websites will also carry dustry around the latest techno- Airbus A400M. business and political­ land- the ever-popular Paris Order logical innovations. To view the last set of daily scape. More details at: Tracker, providing all the key The last show featured some newspapers and to find out more flightglobal.com/­ data on commitments made dur- 142,000 trade visitors with around about this year’s event, visit: airlines2050 ing the event. 140 aircraft on display. flightglobal.com/Paris

34 | Airline Business | 1 June 2019 flightglobal.com/airlines

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