FAMILY BENEFITS Offspring of Singapore Airlines, LCC Scoot, Is Battling to Match Demand with Supply, Said Its CEO, Lee Lik Hsin

FAMILY BENEFITS Offspring of Singapore Airlines, LCC Scoot, Is Battling to Match Demand with Supply, Said Its CEO, Lee Lik Hsin

Vol. 26 No. 8 October 2019 orientaviation.com FAMILY BENEFITS Offspring of Singapore Airlines, LCC Scoot, is battling to match demand with supply, said its CEO, Lee Lik Hsin Asia’s fresh Opportunities beckon for Qatar Airways outbreak of Asian carriers in Central expands China ties start-up fever and Eastern Europe despite losses Lessorsvalue question of new grounding Aircraft leasing: Asia-PacificMAXs after updatelong FLIGHTSAFETY Training Technicians IS HERE FOR Throughout the World YOU Pratt & Whitney Canada Honeywell Aerospace Airframes, Engines & Avionics Learn from industry-leading expert Combine the best classroom and Benefit from specialized instruction for instructors on the full range of P&WC hands-on practical instruction on your specific airframe, engines and engines – including turboprop, turbofan Honeywell’s aircraft engines, avionics, avionics suites developed in collaboration and turboshaft. auxiliary power units and more. with the manufacturers. Highly qualified instructors teach courses at FlightSafety locations around the world or at your facility. flightsafety.com • 800.291.0679 • A Berkshire Hathaway company FLIGHTSAFETY PWC/HONEYWELL MX AD - ORIENT AVIATION - Trim: 202 mm w x 273 mm d Bleed: 212 mm w x 283 mm d Live: 182 mm w x 253 mm d CONTENTS Volume 26, Issue 8 COVER STORY 8 Airbus updates global market demand with Asia 14 leading future growth FAMILY BENEFITS 10 Asia’s fresh outbreak of start-up fever One plus one equals one at LCC 18 Opportunities beckon for Asia’s carriers in Scoot after its successful integration Central and Eastern Europe ORIENT AVIATION MEDIA GROUP with Tigerair 17/F Hang Wai Commercial Building, 231-233 Queen’s Road East, Wanchai, Hong Kong Editorial (852) 2865 1013 E-mail: [email protected] Website: www.orientaviation.com Mailing address: GPO Box 11435 Hong Kong Publisher & Editor-in-Chief AIRPORTS Christine McGee 21 Vietnam’s airports overwhelmed by explosion in E-mail: [email protected] demand for air travel Associate Editor & 21 Hong Kong International Airport on track for Chief Correspondent third runway opening in 2022 Tom Ballantyne Tel: (612) 9638 6895 Fax: (612) 9684 2776 INDUSTRY ADDENDUM E-mail: [email protected] MRO: ASIA-PACIFIC UPDATE 25 Boeing’s regional services joint venture, BAPAS, Asia Editor seals deal with Myanmar National Airlines Will Horton Tel: (852) 2865 1013 25 Airbus and Alibaba Cloud to build data centre in E-mail: [email protected] China North Asia Correspondent COMMENT Geoffrey Tudor 5 Old bogey of CDR raised in dramatic ICAO Tel: (813) 3373 8368 Assembly debate E-mail: [email protected] Photographers ADDENDUM Rob Finlayson, Graham Uden, 6 Losses not deterring Qatar Airways expansion Ryan Peters says group CEO Chief Designer Chan Ping Kwan 25 AFI KLM E&M adds to business with Indonesian Printing MRO GMF Printing Station(2008) 25 Magnetic MRO spreads its wings to Kuala Lumpur 25 International Air Transport Association ADMINISTRATION SmartHub bringing transparency to parts pricing General Manager 26 Tokyo Century takes full control of Aviation Shirley Ho Capital Group E-mail: [email protected] MAIN STORY 26 AerCap strikes second lucrative deal with Saudi 12 Debate drama at ICAO as China, India and Russia bank subsidiary ADVERTISING beat different drums on emissions reduction 26 Travelport teams with Singapore Airlines’ strategy KrisConnect to fully implement its NDC solution Asia-Pacific, Europe & Middle East 26 SITAONAIR and Singapore to develop superior Christine McGee communication systems for aircraft flying over Tel: (852) 6438 3379 E-mail: [email protected] remote regions The Americas / Canada INDUSTRY INSIGHT REPORT: Barnes Media Associates Ray Barnes ASIA-PACIFIC AIRCRAFT Tel: (1 434) 770 4108 LEASING UPDATE Fax: (1 434) 927 5101 Impact of trade wars and MAX grounding on E-mail: [email protected] leasing sector [email protected] 22 Lessors predict new MAX aircraft will lose value NEWS BACKGROUNDERS after such a long grounding Follow us on Twitter @orientaviation 7 Boeing adds heft to its long-term China fleet 24 TrueNoord believes Asia-Pacific brimming with forecast opportunities for regional aircraft lessors OCTOBER 2019 / ORIENT AVIATION / 3 CAN TOO. F LY WE MAKE IT Introducing two clever ways to grow your business. The A220-100 and A220-300 are the newest members of our single aisle family – covering the market from 100 up to 240 seats and flying up to 4,000nm. And with the very latest in cabin ergonomics your passengers will be as comfortable as your profit margin. Profitability. We make it fly. airbus.com 14043_AIR_Single Aisle_273x202_Orient_Aviation_1.0.indd 1 10/09/2019 17:09 COMMENT China should stand with the industry in supporting its global emissions strategy It was not surprising there was dissension among some If it is to achieve these goals, the entire aviation industry delegates of the 193 states attending the International Civil spectrum and all governments must cooperate fully to reach their Aviation Organization’s (ICAO) 40th Assembly in Montreal at the targets of drastically reduced emissions from flying. turn of the month. It was, therefore, disappointing to witness three of the most Three years ago, after negotiations that often were touch and influential countries in the world - China, India and Russia – issue go affairs, delegates to the 39th ICAO Triennial Assembly voted in a joint statement that said the “emphasis should be on those the world’s first industry carbon offsetting scheme, the Carbon policy options that will reduce aircraft engine emissions without Offset and Reduction Scheme for International Aviation (CORSIA). negatively impacting the growth of air transport, especially in It was the single global economic measure that aimed for developing economies”. carbon neutral growth by 2020 and a 50% reduction in emissions, In fact, these priorities already have been accepted by the from 2005, by 2050. The scheme was calculated to generate industry and ICAO member States. Clearly, the decision of these US$40 billion in climate funding and offset around 2.5 billion three countries to issue a separate statement was political. China, tonnes of CO2 from airlines between 2021 and 2035. in particular, clings to its “developing nation” status, even though it Today CORSIA is a reality, but long standing differences is now the world’s second biggest economy and home to some of among some member states about the application of the the world’s biggest airlines. China Southern Airlines is the largest principle of Common but Differentiated Responsibilities (CDR) airline in Asia and among the top five carriers in the world in in the industry have never been laid to rest. And CDR has always passenger numbers. been the bug in the bed when developing any industry climate Public declarations of divisions among ICAO’s member airlines mitigation strategy. will harm CORSIA’s progress and provide the protest movement Putting aside China’s disingenuous claim to be an emerging with misinformed ammunition to attack the industry. economy that would suffer economic drag from CORSIA We all know airline passenger demand is growing faster compared with first world economies, it was a relief that one of than any emissions scheme now in operation. We should be the final acts of the ICAO Assembly was to prioritize the industry’s concentrating on resolving this serious threat to climate damage goal of a 50% cut in emissions and to advocate backing for the rather than taking to the world’s stage with debatable claims about ‘No country left behind’ initiative, which will support emissions CORSIA’s damage to the world’s second largest economy, China, reduction management for less developed countries. and the world’s fastest growing economy, India. ■ TOM BALLANTYNE Associate editor and 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” OCTOBER 2019 / ORIENT AVIATION / 5 ADDENDUM Undaunted Qatar expands China ties despite losses A two-year airspace blockade billion. Passenger numbers are imposed on Qatar by several up, capacity as measured by neighbouring countries available seat kilometres (ASKs) continues to weigh heavily has risen and our cargo business on Qatar Airways financial is the largest in the world,” he performance, but it has failed to said. dent the Doha-based carrier’s The state-owned airline expansion. blamed the latest loss on higher In its latest financial results, fuel costs, currency fluctuations to March 31, the group reported and the loss of routes. Saudi an annual net loss of US$639 Arabia, the United Arab Emirates lost business. New destinations around the world.” million, despite a 14% increase (UAE), Bahrain and Egypt to West and Central Africa The airline, which flies to 160 in revenue. The airline group’s imposed the “illegal blockade” on and South America have been cities, launched 11 destinations outspoken CEO, Akbar Al Baker, the Qatari airline in the belief the suspended. in 2018-2019, bringing new Qatar’s ASK increased routes to 31 since the blockade by 13.5% for the reported was imposed. 12 months. Cargo revenue The airline’s fleet grew by improved 16.8% and available 25 aircraft during the reported tonne kilometres (ATK) expanded year. It took delivery of its 250th 11.8% for the year. Executive aircraft in March. Al Baker said jet revenue reported substantial with more than $85 billion of growth of 18.4% compared with airplanes on order, including the previous 12 months. options and Letters of Intent, “Nonetheless, 2018-2019 the group had the capacity was a challenging year. While to continue its ambitious but it was disappointing, the sustainable network expansion. underlying fundamentals of During the financial year, our business remain extremely the airline group acquired 5% robust,” said Al Baker.

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