VOL. 9 NO. 1 OCTOBER 2001 MAGAZINE OF THE ASSOCIATION OF ASIA PACIFIC AIRLINES 50 50YEARSYEARS Japan Airlines celebrating a golden anniversary AnsettAnsett R.I.PR.I.P.?.? Asia-PacificAsia-Pacific FleetFleet CensusCensus UPDAUPDATETE U.S.U.S. terrterroror attacks:attacks: heavyheavy economiceconomic fall-outfall-out forfor Asia’Asia’ss airlinesairlines VOL. 9 NO. 1 OCTOBER 2001 COVER STORY N E W S Politics still rules at Thai Airways International 8 50 China Airlines clinches historic cross strait deal 8 Court rules 1998 PAL pilots’ strike illegal 8 YEARS Page 24 Singapore Airlines pulls out of Air India bid 10 Air NZ suffers largest corporate loss in New Zealand history 12 Japan Airlines’ Ansett R.I.P.? Is there any way back? 22 golden anniversary Real-time IFE race hots up 32 M A I N S T O R Y VOL. 9 NO. 1 OCTOBER 2001 Heavy economic fall-out for Asian carriers after U.S. terror attacks 16 MAGAZINE OF THE ASSOCIATION OF ASIA PACIFIC AIRLINES HELICOPTERS 50 Flying in the face of bureaucracy 34 50YEARS Japan Airlines celebrating a FEATURE golden anniversary Training Cathay Pacific Airways’ captains of tomorrow 36 Ansett R.I.P.?.? Asia-Pacific Fleet Census UPDATE S P E C I A L R E P O R T Asia-Pacific Fleet Census UPDATE 40 U.S. terror attacks: heavy economic fall-out for Asia’s airlines Photo: Mark Wagner/aviation-images.com C O M M E N T Turbulence by Tom Ballantyne 58 R E G U L A R F E A T U R E S Publisher’s Letter 5 Perspective 6 Business Digest 51 PUBLISHER Wilson Press Ltd Photographers South East Asia Association of Asia Pacific Airlines GPO Box 11435 Hong Kong Andrew Hunt (chief photographer), Tankayhui Media Secretariat Tel: Editorial (852) 2893 3676 Rob Finlayson, Hiro Murai Tan Kay Hui Suite 9.01, 9/F, Tel: (65) 9790 6090 Kompleks Antarabangsa, Fax: Editorial (852) 2892 2846 Design & Production Fax: (65) 299 2262 Jalan Sultan Ismail, E-mail: [email protected] Ü Design + Production Web Site: www.orientaviation.com E-mail: [email protected] 50250 Kuala Lumpur, Malaysia. Colour Separations Director General: Richard Stirland Publisher and Editor-in-Chief The Americas / Canada : Twinstar Graphic Arts Co. Barnes Media Associates Commercial Director: Carlos Chua Barry Grindrod Technical Director: Leroy Keith Printing Ray Barnes E-mail: [email protected] Tel: (603) 2145 5600 Lammar Offset Tel: (1) 434 927 5122 Fax: (603) 2145 7500 Joint Publisher Printing Company Ltd Fax: (1) 434 927 5101 Christine McGee E-mail: [email protected] E-mail: [email protected] Distributed by E-mail: [email protected] Published 10 times a year Wilson Press Ltd Europe : Chief Correspondent REM International February, March, April, May, June, Tom Ballantyne Stephane de Remusat July/August, September, October, ADVERTISING November and December/January. Tel: (612) 9638 6895 Head Office: Tel: (33 5) 34 27 01 30 © All rights reserved Fax: (612) 9684 2776 Wilson Press Ltd Fax: (33 5) 34 27 01 31 Wilson Press Ltd, Hong Kong, 2001. E-mail: [email protected] Christine McGee E-mail: [email protected] Hong Kong & China: Tel: (852) 2893 3676 New Media & Circulation Manager The views expressed in this Jonathan Sharp, Wellington Ng Fax: (852) 2892 2846 Leona Wong Wing Lam magazine are not necessarily E-mail: [email protected] Tel: (852) 2504 3995 Tel: (852) 2865 3966 those of the Association of E-mail: [email protected] E-mail: [email protected] Asia Pacific Airlines. October 2001 | Orient Aviation | 3 PUBLISHER’S LETTER ALL ARE VULNERABLE othing, absolutely nothing, can surpass the horror of To cap off this miserable scenario, some of these same airlines used NSeptember 11, when around 5,500 people lost their lives air space over Afghanistan for their Asia-Europe services – the country after three hijacked airliners on suicide missions smashed into the twin that allegedly harbours the suspected mastermind of the September towers of the World Trade Centre in New York and the Pentagon in 11 U.S. slaughter, Osama bin Laden. Afghanistan is now a primary U.S. Washington. military target. Asia-Pacific carriers have two alternative routes; across That said, who would want to be an airline boss in these terrible South Asia and via the Middle East, but it will add time and fuel costs times? Already running their businesses on a knife edge as the global to their bottom lines. economy continues to slide into a synchronised slowdown, now they But these factors, although very important, pale beside the must deal with the fall-out from collapsing passenger confidence intangible factor in the commercial airline business – when passengers brought on by the attacks and an anticipated U.S. military assault. decide to buy air tickets and why. At the moment airline travellers in To cope, U.S. carriers are cutting services, slashing staff numbers the Asia-Pacific have some very good, if emotional reasons, not to fly and predicting fares will rise – for those who still must fly – to cover – and these sentiments, even if they appear irrational, do not look likely higher airport and inflight security costs. to change in the foreseeable future. For this reason alone, times ahead In the Asia-Pacific, the new aviation world – post September 11 will be very tough indeed. – is particularly vulnerable. Services from this region to the American Continent earn a substantial slice of airlines’ collective revenue. Expect this to suffer, at least in the short-term. As well, the region’s carriers have a very large percentage of long- haul flights in their schedules compared to the U.S. majors. Therefore they are more vulnerable to sudden fuel price hikes and the costs BARRY GRINDROD associated with airport delays than European and American airlines. Publisher/Managing Editor The Association of Asia Pacific Airlines members and contact list: Air New Zealand Dragonair Philippine Airlines Managing Director, Mr Gary Toomey Chief Executive Officer, Mr Stanley Hui Chairman, Mr Lucio Tan General Manager Group Corporate Communication Manager, VP Corporate Communications, Communications, Mr David Beatson Ms Laura Crampton Mr Rolando Estabilio Tel: (64 9) 336 2770 Fax: (64 9) 336 2759 Tel: (852) 3193 3193 Fax: (852) 3193 3194 Tel: (632) 817 1234 Fax: (632) 817 8689 All Nippon Airways EVA Air Qantas Airways President and CEO, Mr Yoji Ohashi President, Mr Frank Hsu Managing Director and CEO, Mr Geoff Dixon Senior VP, Public Relations, Mr Koji Ohno Deputy Senior Vice President, Mr K. W. Nieh Group General Manager Public Affairs, Tel: (81 3) 5756 5675 Fax: (81 3) 5756 5679 Tel: (8862) 8500 2585 Fax: (8862) 2501 7599 Mr Michael Sharp Ansett Australia Tel: (612) 9691 3760 Fax: (612) 9691 4187 Garuda Indonesia General Manager International, Royal Brunei Airlines Mr Andrew Miller President, Mr Abdulgani Manager Group Public Affairs, VP Corporate Affairs, Mr Pujobroto Chairman, Dato Paduka Awang Haji Alimin Ms Heather Jefferey Tel: (6221) 380 0592 Fax: (6221) 368 031 Bin Haji Abdul Wahab Tel: (61 3) 9623 3540 Fax: (61 3) 9623 2887 Tel: (673 2) 343 368 Fax: (673 2) 343 335 Japan Airlines Asiana Airlines President, Mr Isao Kaneko Singapore Airlines President & Chief Executive, Mr Park Chan-bup Director, Public Relations, Mr Geoffrey Tudor Deputy Chairman and CEO, Managing Director, PR, Mr Hong Lae Kim Tel: (813) 5460 3109 Fax: (813) 5460 5910 Dr Cheong Choong Kong Tel: (822) 758 8161 Fax: (822) 758 8008 VP Public Affairs, Mr Rick Clements Korean Air Tel: (65) 541 4030 Fax: (65) 545 6083 Cathay Pacific Airways President and CEO, Mr Shim Yi Taek Chief Executive Officer, Mr David Turnbull VP Public Relations, Mr Seung Jae Noh Thai Airways International Corporate Communications General Manager, Tel: (822) 656 7092 Fax: (822) 656 7288/89 President, Mr Bhisit Kuslasayanon Mr Alan Wong Director, PR, Mrs Sunathee Isvarphornchai Tel: (852) 2747 8868 Fax: (852) 2810 6563 Malaysia Airlines Tel: (662) 513 3364 Fax: (662) 545 3891 China Airlines Chairman, Tan Sri Azizan Zainul Abidin Vietnam Airlines President, Ms Christine Tsung Tsai-yi Head of Industry Affairs, Acting VP, Corp Comms, Mr Paul Wang Ms R. Nordiana Zainal Shah President and CEO, Mr Nguyen Xuan Hien Tel: (8862) 2514 5750 Fax: (8862) 2514 5754 Tel: (603) 2165 5154 Fax: (603) 2163 3178 Dep Director, Corp Affairs, Mr Nguyen Huy Hieu October 2001 | Orient Aviation | DI A RY OST INTEREST: Although much troubled, vestment opportunities arise for foreigners. The Thai Airways International (THAI) acting partial privatisation of THAI is on course to be Lpresident, Somchainuk Engtrakul, said there completed by November. The Thai Government were “quite a few” overseas airlines interested in is reducing its shareholding from 93% to 70%. taking a 10% stake in THAI, others say differently. At one time, Qantas, Singapore Airlines, South A source told Orient Aviation that Lufthansa Ger- African Airways and United Airlines had expressed man Airlines was the only carrier to have seriously interest, but they walked away from Bangkok long thrown its hat in the ring while Air France “was ago. Meanwhile, THAI is said to have committed still sniffing around”. It is understood that THAi itself to a future with the Star Alliance. There have invited the Star Alliance partners to pitch for been rumblings from government interests in the stake, but they said they would leave it to recent months that THAI should not have allowed Acting THAi president, Som- Lufthansa. While 10% is a small interest, Lufthansa rival Singapore Airlines into Star and that it may chainuk Engtrakul: “quite a few will see it as a foot in the door at THAI and put be better off switching alliance groups.