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Airline Business Daily From NEWS FROM IATA AGM iN SEOUL 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 Airlines crash, the type and the more than 350 Manish Swarup/AP/Shutterstock endanger those profit levels. aircraft in service remain grounded. Pilot protest: Jet Airways’ 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 Airbus’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. Europe has suffered its share wars with China continue – proving particular- the UK’s London Heathrow as a target. of airline 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 India 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 France – 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 Boeing 737 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% Brought to you by Projected share of global Increase in ASK capacity Asia-Pacific and Chinese deliveries over next 20 on intra-Asian routes in carrier share of passenger years held by Asia-Pacific June compared with the traffic in 2018, including and China operators same month in 2018 15% from airlines in China THERE IS NO COMPARISON. NO EQUAL. THERE IS ONLY ONE. THE COMMERCIAL JET ENGINE IN A LEAGUE OF ITS OWN. Powered by an industry-fi rst geared architecture — and more than 40 other groundbreaking innovations — the Pratt & Whitney GTF is unlike any engine that’s come before it. EXPLORE THE FUTURE OF FLIGHT AT PW.UTC.COM NEWS Careen: initiative is key to handling rising traffic One Order certification for Lufthansa 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 Star Alliance 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 Airline Business flightglobal.com/airlines WHERE TO FIND US Executive editor Graham Dunn Asia reporter Alfred Chua Printers Korean Studies Information Our editorial team is located Quadrant House, The Quadrant, Managing editor Lewis Harper Design & production Terence Executive director content in the Media Room Sutton, Surrey, SM2 5AS, UK Senior reporter Oliver Clark Burke, Chris Gardner, Lin Ning, Max Kingsley-Jones Americas managing editor Rachel Warner, Christine Zhang Commerical director Stuart Burgess Ghim-Lay Yeo Photography Ian Billinghurst Vice-president FlightGlobal Connect © Airline Business 2019 Deputy Asia editor Ellis Taylor Advertising Richard Perry and Conferences Mark Pilling flightglobal.com/airlines 1 June 2019 | Airline Business | 3 NEWS 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-Shanghai route, we wanted to do,” explains chief going forward,” he adds.