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All Nippon Airways Kingmaker

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All Nippon Airways Kingmaker Vol. 24 No. 10 December 2017-January 2018 orientaviation.com ALL NIPPON AIRWAYS KINGMAKER Shinichiro Ito’s leadership at ORIENT AVIATION ANA and its holding company PERSON OF has transformed Japan’s THE YEAR 2017 “second international carrier” into a world beater SHINICHIRO ITO Chairman ANA HOLDINGS INC. Dubai pushes Alliances challenged The great divide for Open Skies by new joint in aviation with China ventures? security SPECIAL REPORT Year in Review: Trump factor winners, losers & the Your Source for Aviation Chemicals Aviall offers more than 36,000 chemical products! We carry a diverse inventory of sealants, cleaners, adhesives, resins, paints, polishes, waxes, corrosion inhibitors, and much more. All chemical products come with traceability documentation, SDS and a Certificate of Conformance (CoC). With 40 global stocking locations and 85 years of experience selling chemicals and other aviation products, it’s easy to see why so many customers count on us. Go with Aviall. PROUDLY KEEPING THE WORLD IN FLIGHT aviall.com/chemicals 1-800-AVIALL-1 CONTENTS Volume 24, Issue 10 COVER STORY 22 ORIENT AVIATION 2017 PERSON OF THE YEAR PUBLISHED BY ORIENT AVIATION MEDIA GROUP Mailing address: GPO Box 11435 Hong Kong ALL NIPPON Office: 17/F Hang Wai Commercial Building, AIRWAYS 231-233 Queen’s Road East, Wanchai, Hong Kong Tel: Editorial (852) 2865 1013 KINGMAKER E-mail: [email protected] Website: www.orientaviation.com Shinichiro Ito’s leadership of ANA Publisher & Editor-in-Chief and then ANA HOLDINGS INC. Christine McGee has transformed the aviation group from E-mail: [email protected] Japan’s” second international carrier” Chief Correspondent to a world beating airline Tom Ballantyne Tel: (612) 9638 6895 Fax: (612) 9684 2776 E-mail: [email protected] Cover Photo: Akira Igarashi Greater China Correspondent Dominic Lalk Tel: (852) 2865 1013 COMMENT 17 China stalking first world aerospace E-mail: [email protected] 5 load factor up, profits challenged manufacturers North Asia Correspondent 20 Newsmakers of the year in the Asia-Pacific Geoffrey Tudor ADDENDUM 20 On the move in 2018: “Legendary” Leahy retires Tel: (813) 3373 8368 E-mail: [email protected] 6 Dubai pushes for Open Skies with China from Airbus India Correspondent R. Thomas MAIN STORY Tel: (852) 2865 1013 12 Limitless skies for Asia-Pacific budget carriers E-mail: [email protected] Photographers Rob Finlayson, Graham Uden, Ryan Peters Chief Designer Chan Ping Kwan 6 Alliances under challenge as joint ventures Printing Printing Station(2008) increase 7 Hainan Airlines parent, HNA Group, under ADMINISTRATION financial pressure? General Manager INDUSTRY ADDENDUM Shirley Ho E-mail: [email protected] NEWS BACKGROUNDERS 29 MTU Aero Engines upgrades profit forecast 9 Airport monopolies fail airlines and their 29 Honeywell and Lufthansa to offer A350 MRO ADVERTISING passengers global capability Asia-Pacific, Europe & Middle East 29 Siemens, Airbus and Rolls-Royce fast track Clive Richardson electric engine development Tel: (44) 7501 185257 E-mail: [email protected] The Americas / Canada Barnes Media Associates Ray Barnes Tel: (1 434) 770 4108 Fax: (1 434) 927 5101 E-mail: [email protected] [email protected] 10 Good times ahead for airlines in 2018 predicts Follow us on Twitter @orientaviation IATA 30 JALCargo and CHAMP Cargo Systems deepen also - keep up with the news of the week with Orient Aviation’s Week in 28 The great divide in aviation security technology ties the Asia-Pacific 30 Tata Consultancy Services and Rolls-Royce © All rights reserved 2017 YEAR IN REVIEW establish Bangalore analytics hub Wilson Press HK Ltd., 16 Airlines deliver strong performance in a 30 Narita International Airport orders Smiths Hong Kong, 2017 challenging year Detection updated baggage scanner system DECEMBER 2017-JANUARY 2018 / ORIENT AVIATION / 3 B:212 mm T:197 mm S:173 mm NOW’S THE PERFECT TIME TO EXTEND YOUR SUCCESS B:283 mm S:246 mm T:267 mm 777-300ER. A BETTER WAY TO FLY. The Boeing 777-300ER’s unique combination of superior range, outstanding fuel efficiency and passenger-preferred comfort has created long-range success for carriers around the world. And with recent upgrades that further reduce costs and boost revenue, now’s the perfect time to add to that success, in the air and on the bottom line. The 777-300ER makes every fleet a more profitable fleet. That’s a better way to fly. boeing.com/777 Job Number: 10677135 Version: A Client/Brand: Boeing/BCA Date: 11-16-2017 6:20 PM APPROVALS File Name: 10677135vA_BCA_777300_197x267.indd QC: Steve Jablonoski Bleed: 212 mm x 283 mm Gutter: None Publications: Airline Business, Orient Aviation PA: Steve Hutchings PR: Pat Owens Trim: 197 mm x 267 mm Folds: NoneNone Notes: Bill to: 10677135 RET: Greg Olsen PP: None Safety: 173 mm x 246 mm Media/Color Sp: PRINT/4 COLOR AB: Kathleen Candelaria TM: Kate Vilt/Deanna Loperena Scale: 1=1 Country: None Vendor: None Actual Size: 197x267 mm Language: English Output%: None GCD: Eugene Varnado Colors: Cyan, Magenta, Yellow, Black AD: Sarah Frazer Fonts: Helvetica Neue (65 Medium, 75 Bold; Type 1) CW: Chloe Lebamoff AE: Megan O’Malley/Cara Hays ALL CONTENT WITHIN THIS FILE IS FOR OUTPUT ONLY BY END PRINTER/VENDOR. CHANGES, SHARING AND/OR DISTRIBUTING CONTENT IN WHOLE OR IN PART ARE STRICTLY PROHIBITED. LICENSING RIGHTS AND APPROVALS MUST BE REQUESTED AND APPROVED TO/BY FCB CHICAGO. Images: 10677135CT04_R0_BCA_777300_210x297.tif (354 ppi; CMYK), Boeing_white_50mm.eps COMMENT Load factor up, profits challenged It’s been a big year in Asia-Pacific aviation. Changed continue to do so in the year ahead. The enduring marketing conditions have forced two of the most problem of infrastructure shortfalls cannot be solved successful airlines in the world, Cathay Pacific quickly and oil prices are continuing to climb. Airways and Singapore Airlines, to enter into root and The International Air Transport Association branch transformation programmes planned to return said this month that average prices for jet fuel are them to the top of the global airline profits league. expected to pass US$73 per barrel in 2018. Staff costs Meanwhile, Chinese carriers are continuing their account for 30% of total airline operating outlays and march across the globe, bringing to heel mighty are more expensive than fuel, it added. North American carriers used to setting the rules Another increasing financial burden for for trans-Pacific airline business. At another level, airlines is paying for stricter air passenger travel low-cost carriers are broadening their networks clearance procedures, a cost that should be borne onto long haul routes and the Middle East carriers, by governments. Add to this a volatile geopolitical although slightly less aggressive than in past years, environment, natural disasters such as the active Bali are targeting the region’s key growth centres for volcano and the appeal of low-cost carriers to the expansion. younger aircraft passenger and the conclusion has to So what is ahead for Asia-Pacific aviation in be that running an airline won’t be any easier in 2018. 2018? Analysts are unanimous in forecasting healthy There may be more customers, but extracting passenger growth for the next 12 months, but how sufficient yield from selling a seat to cover costs, let profitable that growth will be is another question. along make money in such a competitive market will On many levels, the issues that are impeding remain as challenging for Asia-Pacific airlines in the operations and costing airlines money today will years to come as it was in the past. ■ TOM BALLANTYNE Chief Correspondent Orient Aviation Media Group The most trusted source of Asia-Pacific commercial aviation news and analysis ORIENT AVIATION ORIENT AVIATION CHINA “It has established itself as the primary source of information on industry topics in the Asia-Pacific region” DECEMBER 2017-JANUARY 2018 / ORIENT AVIATION / 5 ADDENDUM Emirate pushing for “Open Skies” with China At the Dubai Air Show last month, Airports Company, which to reach its target of almost 90 done by the airlines from both the CEO of the emirate’s colossal operates Dubai International and million passengers for 2017, countries. This strategy produces airport group, Paul Griffith, made Dubai World Central Airports, Griffiths said, and added a the best and most competitive it clear that attracting a greater said Dubai was in pursuit of significant portion of its long-term product for the customer, which share of Asia’s passenger market, “Open Skies” with China. growth would be passenger is the best pricing. particularly travelers from China Griffiths said it was hoped business from China and “It makes everything much and Southeast Asia, was a top China could be persuaded that Southeast Asia. easier and usually results in a priority for the group. opening its domestic market to “If you look to 2024, there’s huge uplift in the amount of trade, Speaking only days after more international airlines would a projected increase of 1.3 tourism and commercial activity Qatar Airways announced benefit its economy. Australia billion passenger journeys from between the two countries.” it intended to complete the is the only country with an Southeast Asia and China. We are The UAE and Chinese purchase of 9.61% of Hong Open Skies agreement with the very excited about this possibility governments have held talks on Kong’s Cathay Pacific Airways, Mainland. because Dubai is at the heart of Open Skies but they had yet to the chief executive of the Dubai Dubai Airports expected that. We are well able to service bear fruit, he said. that market because we are so “Some countries are faster well positioned geographically for than others to embrace it. it,” he said. Australia is a good example. It Last year, the United Arab does not matter which airline Emirates (UAE) introduced a people fly as long as they arrive in visa-on-arrival policy for Chinese Australia.
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