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FINDING HIS TRUE CALLING Former Banker and Self-Confessed Plane Spotter, Benyamin Ismail, Lives His Dream As Airasia X’S Boss

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FINDING HIS TRUE CALLING Former Banker and Self-Confessed Plane Spotter, Benyamin Ismail, Lives His Dream As Airasia X’S Boss Vol. 24 No. 2 March 2017 orientaviation.com FINDING HIS TRUE CALLING Former banker and self-confessed plane spotter, Benyamin Ismail, lives his dream as AirAsia X’s boss Hong Kong government’s Trump All Nippon Airways new tax law sets up city travel announces CEO as aircraft leasing hub backlash succession INDUSTRYAstonishingregion’s INSIGHT:expansion pace route of The closer we look at your engine, the better you see it. Pratt & Whitney keeps a close eye on every engine we build and service. Then we share our decades of engine intelligence and advances in big data to bring unprecedented performance, predictability and service life to your engine. It’s the operational advantage you’ll see only from your engine maker. Take a closer look at www.pw.utc.com. Connect with us 42547_P&W_Closer_OrientAviation.indd 1 2/8/17 11:14 AM Client: Pratt & Whitney Commercial Engines Services Ad Title: The closer we look Publication: Orient Aviation - March Trim: 202 x 273 mm • Bleed: 212 x 283 mm • Live: 182 x 253 mm CONTENTS Volume 24, Issue 2 COVER STORY 22 FINDING HIS TRUE CALLING PUBLISHED BY Banker turned CEO, Benyamin Ismail, 39, formally took ORIENT AVIATION MEDIA GROUP over at AirAsia X in September 2015. Fifteen months later, Mailing address: the carrier announced its first annual profit in three years. GPO Box 11435 Hong Kong Office: With a good result under his belt, the self-confessed plane 17/F Hang Wai Commercial Building, spotter has long-term profitability in his sights. 231-233 Queen’s Road East, Wanchai, Hong Kong Tel: Editorial (852) 2865 1013 E-mail: [email protected] Website: www.orientaviation.com Publisher & Editor-in-Chief Christine McGee E-mail: [email protected] Chief Correspondent Tom Ballantyne Tel: (612) 9638 6895 Fax: (612) 9684 2776 E-mail: [email protected] Greater China Correspondent Dominic Lalk Tel: (852) 2865 1013 E-mail: [email protected] North Asia Correspondent Geoffrey Tudor COMMENT 19 Air Lease Corporation adds another leased Tel: (813) 3373 8368 E-mail: [email protected] 7 President Trump’s impact on travel aircraft to Air New Zealand fleet 19 CDB Lease Finance delivers eighth B737-800 to India Correspondent R. Thomas ADDENDUM Shandong Airlines Tel: (852) 2865 1013 8 Fernandes not giving up on single ASEAN AirAsia 20 Lessors demand different MRO deals than airline E-mail: [email protected] Group customers Photographers 8 ANA HOLDINGS names successor to All Nippon Rob Finlayson, Graham Uden, Ryan Peters Airways CEO MAIN STORY 8 Share transfer gives ANA parent 67% of LCC 16 Trump Travel Backlash Chief Designer Chan Ping Kwan Peach 9 Garuda Indonesia threatened by agency ban in Printing INDUSTRY ADDENDUM Printing Station(2008) commission dispute 27 Airways New Zealand founding partner of Air 9 Virgin Australia reported interim losses and fitter Traffic Management research unit ADMINISTRATION Air New Zealand and Qantas hit by capacity and 27 New Zealand and manufacturer, Aireon, plan General Manager foreign competition testing of new aircraft tracking system Shirley Ho E-mail: [email protected] 10 Thai Airway International (THAI) board throws 27 Tigerair selects CPaT’s distance learning tools for out claims of former senior staff that A340s “are cockpit training ADVERTISING rotting” at local airports; allegations of corrupt 28 Avtrade opens for business in Guangzhou Asia-Pacific, Europe & Middle East acquisition of the aircraft persist 28 Lufthansa Technik and MTU plan MRO engine Clive Richardson 10 Hong Kong Airlines appoints Boeing branding joint venture; MTU Aero reports record results Tel: (971) 50 554 6608 E-mail: [email protected] expert as Chief Marketing Officer 28 Simulator manufacturer ALSIM to set up training schools in India with local partner The Americas / Canada Barnes Media Associates NEWS BACKGROUNDERS 28 Kansai Airport to trial Smiths Detection’s Smart Ray Barnes 12 Thai aviation must survive second ICAO safety Security walk through passenger system Tel: (1 434) 770 4108 Fax: (1 434) 927 5101 audit E-mail: [email protected] 14 Payments paradise lost as IATA enters the INDUSTRY INSIGHT REPORT [email protected] industry sector? Six page report on the astonishing pace of route development in the Asia-Pacific Follow us on Twitter @orientaviation 29 Is airline consolidation coming to the region? also - keep up with the news of the week LEASING with Orient Aviation’s Week in 18 Hong Kong challenges Singapore as aircraft China continues global route assault, new the Asia-Pacific lessor hub airline alignments shape Australasian market; © All rights reserved 19 Hong Kong forms aircraft leasing association North Asia must counter Mainland market grab; Wilson Press HK Ltd., 19 China Aircraft Leasing forecasts 60% profit jump Budget carriers dominate Southeast Asian airline Hong Kong, 2017 19 Aerfin completes Jet Airways B737-800 acquisition expansion MARCH 2017 / ORIENT AVIATION / 3 © AIRBUS, 2017. All rights reserved. Airbus, its logo and the product names are registered trademarks. Almost everything about the A330neo is new new A350 generation engines new wings with A350 sharklets new A350 cabin Flying further with less fuel The Airbus Widebody Family featuring the new Airspace cabin © AIRBUS, 2017. All rights reserved. Airbus, its logo and the product names are registered trademarks. Almost everything about the A330neo is new new A350 generation engines new wings with A350 sharklets new A350 cabin Flying further with less fuel The Airbus Widebody Family featuring the new Airspace cabin MARKET-EXPERT CLOSER TO CENTRAL EUROPE Ivana Bohucka, Airlines strategy director, Pelikan.sk Four countries, one market: Together with Vienna Airport, the online travel agency Pelikan.sk ensures a perfect connection between Slovakia, the Czech Republic, Hungary and Austria. And both business and leisure travellers trust their regional market expertise and know-how, and reap the benefits of this unique offer: Vienna Airport is within easy reach and the perfect gateway between Central Europe and the world. viennaairport.com/closerto Orientaviation_marketexpert_202x273.indd 1 21.02.17 11:53 COMMENT President Trump’s impact on travel Whatever one thinks about U.S. President Donald The Trump administration has promised to issue a Trump’s Executive Order (EO) to ban entry of travelers new EO to secure his travel bans. Whatever happens, into the U.S. from seven and now six Arab nations, it had airline passengers are cancelling or avoiding travel to the an immediate impact on aviation. U.S. The fall-off in visitors will remove tens of millions of Quite apart from major anti-Trump demonstrations dollars from the U.S. tourism industry and precipitate job at airports across the U.S., the EO sent airlines rushing losses. to their crew rosters to see how many of their staff had Everyone agrees a sovereign nation has the right passports from the identified nations. The most recent to protect its borders, but it should be done through decision by the White House, to remove Iraq from a proper security channels and not by blanket bans that revised travel ban, underscored the problem. discriminate against genuine travelers because of their Announced at press time, after extensive discussions country of birth or their religion. about alienating key ally Iraq in the fight against Islamic Worst of all for the airline industry, President Trump’s State, President Trump took Iraq off the banned list. A ban was introduced without warning. The International relief for sure but the decision was another example of Air Transport Association (IATA) said it caused confusion the confusion the ban is generating with travelers and at airlines and with travelers. “It also placed additional airlines worldwide. burdens on airlines to comply with unclear requirements, One survey, conducted a week after the initial to bear implementation costs and to face potential ban was announced, revealed flight searches from penalties for non-compliance,” the association said. international origins to the U.S. plummeted 17% and IATA urged all governments to provide sufficient airline bookings to the U.S. dropped 6.5%. The decrease advance coordination of changes in entry requirements in Asia was even higher, at 14%. The ban may have been so travelers can clearly understand them and airlines blocked by U.S. Federal Courts, but that has not brought can efficiently implement them. The burden of President an end to travellers’ uncertainty. Trump’s ban should not be born solely by airlines. ■ 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” MARCH 2017 / ORIENT AVIATION / 7 ADDENDUM Fernandes fights on for single ASEAN AirAsia Group Air Asia group chief executive, Tony highest aircraft utilization rate of all the short- Fernandes, wants countries in Southeast haul airlines in the group reported with a 52% Asia to relax ownership restrictions so he can capacity increase for the year to December combine his separate airline units in Malaysia, 31. “Our focus remains on building our Thailand, Indonesia and the Philippines into a footprint and introducing our low fares to single listed ASEAN company. many more Indian cities,” Fernandes said. He made his wishes public when the After several delays, AirAsia Japan is AirAsia group announced its airlines across approaching a full launch, with the airline Southeast Asia made a profit in 2016. A net expecting to open ticket sales from its Nagoya profit of $104.7 million in the fourth quarter base “soon” said Fernandes. He added the to December 31 lifted the company to a full carrier would end 2017 with five aircraft. year result of $457.2 million Bringing its Southeast Asian operations Indonesia AirAsia was in the black for under a single company umbrella would its second consecutive quarter and AirAsia’s bring significant benefits and efficiencies Phillipines subsidiary was operationally to the group’s back office operations, profitable after excluding a one-off charge favourable conditions in Thailand.
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