Fleet Census - Orient Aviation

COMMENT
Need for dialogue with ‘greens’
In a perfect world airlines would prefer none of
the alternatives being mooted as ways for them
to contribute to the fight against global warming.
These include draconian environmental taxes and
emissions trading schemes involving a further
financial burden on an industry already spending billions
making itself as green as it can.
Carriers do this by buying expensive fuel-efficient aircraft
and combing through operations to eke out fuel savings.
They have extensive environmental plans in place – from
saving energy in offices to recycling materials – to make their
businesses eco-friendly. Aircraft and engine manufacturers
do the same while investing in research to produce products
that are even more efficient.
Yet the reality is aviation will have to accept some sort of
imposition. That being the case, emissions trading – through
which they can buy or even sell permits from an allotted
carbon allowance – is the preferred path.
The International Civil Aviation Organization (ICAO),
not known for being fleet of foot, appears set to endorse
guidelines that at least offer the prospect of a level playing
field as individual governments or regional blocs begin
introducing schemes which include aviation and which could
be in place before the end of the year.
As British Airways chief executive Willie Walsh says in
our cover story this month, emissions trading provides an
incentive for airlines to improve their performance. It is also
the most economically and environmentally effective way of
dealing with aviation’s contribution to global warming. He
should know. His is the only airline currently participating
in a voluntary emissions trading scheme. It has been doing
so since 2002.
But trading is only part of the game. It must be coupled
with an ongoing search for further efficiency gains using
new technology and, most important of all, action to improve
inefficient air traffic control.
Another issue touched on in our story is the need for
a serious dialogue with the environmental groups who
criticise airlines. They want what the carriers want: a better
environment. Together the two lobbies could represent a
powerful coalition capable of breaking the back of the air
traffic logjam by putting immense pressure on governments
to act and act quickly.
TOM BALLANTYNE
Chief Correspondent
The Association of Asia Pacific Airlines’ members and contact list
Air New Zealand
Chief Executive, Mr Rob Fyfe
VP Public Affairs and Group Communications,
Mr Mike Tod
Tel: (64 9) 336 2770 Fax: (64 9) 336 2759
All Nippon Airways
President and CEO, Mr Mineo Yamamoto
Dep. Director, Public Relations, Mr Kaz Iwakata
Tel: (81 3) 6735 1111
Fax: (81 3) 6735 1115
Asiana Airlines
President & Chief Executive,
Mr Park Chan-bup
Managing Director, PR, Mr Hong Lae Kim
Tel: (822) 758 8161 Fax: (822) 758 8008
Cathay Pacific Airways
Chief Executive Officer, Mr Philip Chen
Corporate Communications General Manager,
Mr Dane Cheng
Tel: (852) 2747 8868 Fax: (852) 2810 6563
China Airlines
President, Mr Ringo Chao
VP, Corp Comms, Mr Johnson Sun
Tel: (8862) 2514 5750
Fax: (8862) 2514 5754
Dragonair
Chief Executive Officer, Mr Kenny Tang
General Manager, Corp. Communications
Mrs Laura Crampton
Tel: (852) 3193 3193 Fax: (852) 3193 3194
EVA Air
Chairman, Mr Steve Lin
Executive VP, Group Public Relations,
Mr K. W. Nieh
Tel: (8862) 2500 1122 Fax: (8862) 2500 1523
Garuda Indonesia
President & CEO, Mr Emirsyah Satar
VP Corporate Communications, Mr Pujobroto
Tel: (6221) 231 2612
Fax: (6221) 381 1486
Japan Airlines
President, Mr Haruka Nishimatsu
Director, International Public Relations,
Mr Geoffrey Tudor
Tel: (813) 5460 3109 Fax: (813) 5460 5910
Korean Air
Chairman and CEO, Mr Yang Ho Cho
Managing VP, Corporate Communications,
Mr Nam Il Park
Tel: (822) 2656 7065 Fax: (822) 2656 7288/89
Malaysia Airlines
Managing Director, Idris Jala
Gen Mgr, Int’l Affairs, Germal Singh Khera
Tel: (603) 2165 5137
Fax: (603) 2161 0558
Philippine Airlines
President, Mr Jaime Bautista
VP Corporate Communications,
Mr Rolando Estabilio
Tel: (632) 817 1234 Fax: (632) 817 8689
Qantas Airways
Managing Director and CEO, Mr Geoff Dixon
Head of Corporate Communications,
Belinda de Rome
Tel: (612) 9691 4773 Fax: (612) 9691 4187
Royal Brunei Airlines
Chairman, Pengiran Dato Hamid Yassin
Acting CEO, Pengiran Yusof Jeludin
Tel: (673 2) 229 799
Fax: (673 2) 221 230
Singapore Airlines
Chief Executive Officer,
Mr Chew Choon Seng
VP Public Affairs, Mr Stephen Forshaw
Tel: (65) 6541 5880 Fax: (65) 6545 6083
Thai Airways International
President, Flying Officer Apinan Sumanaseni
Director, PR,
Mrs Sunathee Isvarphornchai
Tel: (662) 513 3364 Fax: (662) 545 3891
Vietnam Airlines
President and CEO, Mr Nguyen Xuan Hien
Dep Director, Corp Affairs,
Mr Nguyen Huy Hieu
Tel: (84-4) 873 0928 Fax: (84-4) 872 1161
APRIL 2007 ORIENT AVIATION 3

APRIL 2007
CONTENTS
O R I E N T A V I AT I O N V O L U M E 1 4 , I S S U E 0 6
MAIN STORY
10 Clear ambitions. A breakthrough in emissions trading could take the heat off the
airline industry
12 Widespread IATA campaign to get its message across
NEWS BACKGROUNDER
16 Qantas deal hanging
in the balance
18 JAL’s Nishimatsu puts
his job on the line
SPOTLIGHT ON THE GULF
24 Hogan’s heroics. Etihad boss charts
expansion while working to make
start-up pay
26 Low-cost Air Arabia steps up the pace
30 Kuwait carrier struggles with legacy
of war
CARGO UPDATE
20 ANA ups the ante as competition
heats up
22 DHL in major China breakthrough
22 Sri Lankan Cargo seeks more space
COMMUTER AVIATION
40 Haneda expansion boost for
commuter jets
41 Mitsubishi may challenge the big two
4 ORIENT AVIATION APRIL 2007

SPECIAL REPORT
SAFETY IN THE ASIA- PACIFIC
32 Industry rushes to help
Indonesia
35 IOSA gains momentum
36 Righting wrong turns on
the runway
37 On track of dangerous
debris
38 China’s new safety
initiative
NEWS
6 Restructuring continues across the Asia Pacific
6 Top China job for Chen; Tyler to become Cathay Pacific chief
6 Air space changes in Pearl River Delta
7 A380 returns to the Asia-Pacific on route proving tour
8 Business Round Up: premium passengers boost Cathay Pacific
profit; good result for Air China; MAS stays in the black; record
return for AirAsia
FLEET CENSUS
42 China, India lead the charge
REGULAR FEATURES
3 Comment: need for dialogue with ‘greens’
52 Business Digest: measured growth in 2006
Association of Asia Pacific Airlines Secretariat
Suite 9.01, 9/F, Kompleks Antarabangsa
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Tel: (603) 2145 5600 Fax: (603) 2145 2500
E-mail: info@aapa.org.my
Director General: Andrew Herdman
Commercial Director: Beatrice Lim
Technical Director: Martin Eran-Tasker
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APRIL 2007 ORIENT AVIATION 5

REGIONAL ROUND-UP
Restructuring
continues
across Asia-Pacific
As uncertainty about the ultimate
success of the private buy-out offer
for Australian flag carrier, Qantas
Airways (see p. 16) strengthened in March,
three major regional carriers announced
start-up or expansion plans for Asia-Pacific
low-cost carriers.
Malaysia Airlines (MAS), which
has announced a profit for its second
consecutive quarter, is launching an LCC,
Firefly, to compete against the region’s
most successful LCC, AirAsia, also
headquartered in Malaysia. Firefly’s first
routes will be domestic as well as to the
tourist islands of Phuket and Koh Samui,
Thailand.
Separately, AirAsia has said plans for its
June launch of long-haul LCC, AirAsia X,
will be delayed until later this year because
aircraft leasing costs were higher than
predicted since the recent announcements
of new A380 delivery delays. AirAsia X
intended to fly to Britain from July.
In Australia, the market shake-up is
continuing after the national government
approved the incorporation of a subsidiary
of Singapore LCC, Tiger Airways, in the
northern Australian city of Darwin. Tiger
Airways Australia’s parent, Tiger Airways,
began flying to Perth from Singapore in
March.
Tyler to replace
Chen at Cathay Pacific
Cathay Pacific Airways chief
executive, Philip Chen, will
become chairman of John Swire
& Sons (China) from July 1 as well as
assuming the post of non-executive deputy
chairman of the carrier he has lead since
January 2005.
Chen, 52, who has overseen the buyout
and integration of regional carrier,
Dragonair, into Cathay Pacific during the
last nine months, was the first Chinese boss
of the Hong-Kong based global carrier.
He joined Swire in 1977 after graduating
with honours from the University of Hong
Kong. He was based in Beijing as the chief
representative and general manager of
Swire China from 1989 to 1992 and was
then chief executive of Dragonair and chief
operating officer at Cathay Pacific before his
appointment to the top job.
Malaysia Airlines: launching a new LCC, Firefly
Tony Tyler, the carrier’s present chief
operating officer, will succeed Chen as
chief executive. A graduate of Oxford
University, Tyler, 52, is a widely respected
and experienced aviation manager who
joined the Swire Group 30 years ago.
He moved to Cathay Pacific in 1978
and has worked for the airline in Australia,
the Philippines, Canada, Japan, Italy and
London. He became the carrier’s director
of corporate development in 1996 and was
responsible for strategic development of
Cathay Pacific’s network as well as board
level decisions on property, purchasing,
personnel and alliances. Tyler was appointed
director of service delivery and then chief
operating officer in 2004. He also has been
a director of Dragonair and has seats on the
board of Hong Kong Aircraft Engineering
Co. Ltd (HAECO) and cargo carrier, Air
Hong Kong.
PEOPLE: in brief
Air space changes
planned in PRD
A
deal
has been negotiated between
China, Macau and Hong Kong to
rationalize air space management
in southern China’s Pearl River Delta
(PRD), the head of the Mainland’s Air
Traffic Management Bureau, Lu Langen,
has told Hong Kong’s South China Morning
Post.
Su said the detail of the agreement,
expected to be approved by year-end, would
include the grouping of the PRD’s five
airports into northern and southern regions.
At present, the five – Hong Kong, Shenzhen,
Macau, Zhuhai and Guangzhou – operate in
five separate air spaces. The new air traffic
strategy would eliminate the boundaries for
northbound flights from Hong Kong and
Macau.
• RANDY Baseler, vice-president, marketing, for Boeing Commercial Airplanes,
and a well known face in the Asia-Pacific region, willl retire this month after 33 years
with the company. Baseler, 58, announced his surprise retirement in March.
He said: “Not everyone gets to bow out at the peak of their game so to speak, but I
am a firm believer in doing it if you can. My plan is to settle into my cowboy boots, blue
jeans and flannel shirts and stay closer to the ground.”
• BRUCE Peddle, who has been responsible for Embraer’s Asia-Pacific operations
for four years, will be the company’s vice-president marketing and sales for the U.S,
Canada and the Caribbean from May 1. Canadian Peddle has spent 20 years in aviation
of which the last 10 have been with the Brazilian-headquartered manufacturer.
• AIRCRAFT lessor, CIT Aerospace, has appointed Graham Niven as vicepresident
marketing for North Asia for its commercial airlines group, effective
immediately. He will be based in Singapore. CIT also has appointed Angus Green,
a former regional sales director for Airbus as marketing vice-president for Africa,
France, Italy and Malta. Green will be based in Dublin.
6 ORIENT AVIATION APRIL 2007

SHORTTAKES
AIRLINES>> Thai domestic low-cost
carrier, Nok Air, relocated its operations
from Bangkok’s new Suvarnabhumi
airport in March to the former airport for
the city, at Don Muang, where it will be
based in the domestic terminal.
AIRPORTS>> Shanghai authorities have
approved a US$2 billion plan to upgrade
Hongqiao airport to allow it to handle
predicted annual passenger numbers of 40
million by 2015, compared with its current
traffic flow of 19 million – almost 10 million
more than its planned capacity. Qantas
Airways is concentrating its international
services out of Sydney.
ALLIANCES>> Global alliance,
oneworld, has said there have been
discussions with China Eastern
Airlines, the only “big three” China
carrier not in an alliance, about joining.
CODE-SHARES>> Korean Airlines
(KAL) and Japan Airlines (JAL) have
expanded their code-share relationship
to include KAL’s non-stop daily flights
between Jeju to Narita and Osaka. JAL
has also expanded its code-shares with
Hainan Airlines on the Chinese carrier’s
new Osaka- Beijing route. Singapore
Airlines (SIA) has signed a codeshare
with US Airways to Las Vegas
and Phoenix via San Francisco and Los
Angeles and to Charlotte, North Carolina
from JFK International, New York.
CARGO>> Boeing has chosen ST
Aviation Services Company Pte Ltd
(SASCO) for its B767-300 Boeing
Converted Freighter programme in a deal
valued at US$136 million.
FLEET>> All Nippon Airways ordered
four B777-300ERs and will sell B747-
400s. Cebu Pacific has ordered 10
A320s with options for five more as well
as signing purchase rights for another
five of the aircraft type.
ROUTES>> Air New Zealand will
increase its services from Auckland to
Hong Kong from November to doubledaily
twice a week and add two flights
a week, bringing services to five a week,
between Auckland and Shanghai. Hong
Kong Express Airways has added
Xian in China to its network of routes
that includes Chengdu, Chiang Mai,
Chongqing, Hangzhou and Ningbo.
SPARE PARTS>> GE Commercial
Aviation Services (GECAS) will finance,
manage and supply parts for AirAsia’s
fleet of 34 B737-300 aircraft under a
recently signed agreement. AirAsia leases
nine B737-300s from GECAS.
Lufthansa: involved in route proving flights
A380 back in Asia
The A380 returned to the Asia-Pacific late last month
when test aircraft MSN07 flew to Hong Kong from
Frankfurt, Germany, for a one-night stopover.
The aircraft continued on to the U.S. as part of a
commercial route proving exercise in advance of
entry-into-service late this year with Singapore Airlines.
A series of flights over a 12-day period, run jointly with A380
customer Lufthansa German Airlines, also took the aircraft to New
York, Chicago and Washington D.C. Airbus test pilots and Lufthansa
captains were at the controls and Lufthansa cabin crew served a full
complement of 500 passengers during the long-haul routes.
The aim was to fine-tune the aircraft’s interior systems under
operational conditions on the equivalent of scheduled flights.
Lufthansa has 15 A380s on order, the first of which will arrive in
mid-2009 after a two-year delay.
Separately, Qantas Airways’ staff were on hand at Los Angeles
international airport to help MSN01 through its airport compatibility
tests. The west coast city will be the first American destination for the
A380 in Qantas colours after deliveries begin in August 2008.
APRIL 2007 ORIENT AVIATION 7

BUSINESS ROUND-UP
Premium passengers
boost Cathay Pacific
Strong passenger demand assisted by fuel
surcharges and fuel hedging resulted in
a net profit of HK$4.09 billion (US$523
million) for the year to December 31, 2006, for
the Hong Kong-based global carrier Cathay
Pacific Airways.
The full-year result, compared with a
profit of HK$3.3 billion in 2005, beat analysts’
forecasts, who predicted the carrier would
turn in a net profit of HK$3.66 billion.
Cathay Pacific said stronger than forecast
premium passenger demand, especially
from the Chinese routes operated by its
newly-acquired subsidiary, Dragonair, had
contributed significantly to the 24% profit
increase.
The amalgamation of Cathay Pacific
Airways and Dragonair will place increased
emphasis on the huge potential offered
by the Mainland market, the airline said.
Sales from Hong Kong and the Mainland
increased by 23% to HK$24.86 billion for
the year.
In December, Cathay Pacific added
Shanghai to its China services, a long
awaited addition to its mainland sole route
to Beijing. However, cargo – which made
up 23% of sales – was down 3.4% for the
year following a decline in key markets.
Chief operating officer and CEO-designate,
Tony Tyler, predicted cargo would become
more competitive as other regional airlines
entered the market for business to Europe.
Air China profit
climbs 12%
Air China, the nation’s flag carrier,
has repor ted a 12% increase
in prof it, to 2.69 billion y uan
(US$49.57 million) to December 31,
Briefly ...
Cathay Pacific: profits beat
anaylsts’ forecasts
compared with a 2.41 billion profit for the
previous 12 months.
Air China, which has Cathay Pacific
Airways as a 20% investor, said improved
passenger and cargo business with rises of
14% and 15% respectively, produced the
good result despite high fuel prices for most
of the 12 months reported. The carrier said
fuel costs increased by 33% despite its fuel
hedging policy and the carrier’s access to
cheaper fuel – outside China – than its rivals
because it has more international routes than
they do.
Air China has owned 17.5% of Cathay
Pacific since the last quarter of 2006 in a
share swap and purchase deal that saw the
Hong Kong-based airline acquire 100%
ownership of Dragonair.
AirAsia records
biggest profit
AirAsia, the Asia-Pacific’s first lowcost
carrier (LCC), has announced
its best financial results with a profit
of 150.1 million ringgit (US$43.05 million)
for the three months to last December 31.
AirAsia said it carried 2.27 million
• Polynesian Blue, a joint venture between Australia’s Virgin Blue Airlines and
the Samoan government, announced a pre-tax profit of US$2.6 million for the
six months to December 31, almost tripling the profit it recorded for the first eight
months of operations after its launch in October 2005.
• Hong Kong Aircraft Engineering Co (HAECO) reported a net profit of HK$847
million (US$108.59 million) for the 12 months to December 31, compared with a
HK$618 million profit for the previous 12 months. HAECO chairman, Chris Pratt,
said the company’s future profits would be influenced by the rising yuan and the
need to attract and train qualified staff to sustain the company’s growth.
passengers in the quarter, a 69% increase
over the same period in 2005, after it took
over 90 domestic routes formerly operated
by Malaysia Airlines. The LCC added
capacity of 52% in the three months, but still
filled an average of 82% of its airplanes.
Chief executive officer, Tony Fernandes,
said: “This is our best quarter ever. We have
outperformed our expectations on every
performance matrix: load factor, yields,
ancillary income penetration and unit cost
production were significantly better than
our initial budgets at a time when we have
launched 15 new routes.”
AirAsia joint venture, Thai AirAsia,
recorded an 80% load factor for the period
and growth of 52% overall. Indonesia
AirAsia also reported an average load factor
of 83% and went into profit for the quarter
compared with a loss for the same period
in 2005.
Fernandes said AirAsia’s ancillary
income had grown by 78% for the three
months and was now the biggest growth
centre for business.
Malaysia Airlines
stays in the black
Ma l ay s i a A i r l i n e s ( M A S )
has a n nou nced it s second
consecutive quarterly profit, of
121.5 million ringgit (US$34.8 million),
adding it would exceed its annual forecast
profit of 50 million ringgit for the 2006-
07 year. The quarterly result compared
with a loss of 611.3 million ringgit in the
same months a year ago. Said MAS chief
executive, Idris Jala: “We are not out of
the woods yet and there is more to do. For
2007 we will continue the momentum and
intensify the business turnaround initiatives
to generate profit.”
8 ORIENT AVIATION APRIL 2007

MAIN STORY
Cathay Pacific Airways: spent considerable time and money on environmental policies
BURNING ISSUES
As the debate over the global environment gathers pace, aviation has become a prime
target for the politicans and the green lobby. TOM BALLANTYNE reports on the
leading role being played by major Asia-Pacific carriers in addressing climate change
Two of the Asia-Pacific’s leading
carriers are upgrading their
environmental programmes
to include an initiative to cut
harmful aircraft emissions
recently endorsed by the airline industry’s
global regulatory body, the International
Civil Aviation Organisation (ICAO).
Cathay Pacific Airways and Singapore
Airlines (SIA) have traditionally put
considerable time and money into their
environmental policies. Now they are
backing a carbon emissions trading scheme
for international aviation being established
under ICAO’s leadership.
Their moves come at a time when the
aviation industry fears over-zealous governments
may be about to levy taxes and charges
far out of proportion to airlines’ contribution
to global warming to satisfy green critics and
raise cash to fight climate change.
Cathay Pacific has a Climate Change
Task Force group developing strategy and
it already includes data on fuel burn and
emissions in its annual environmental report.
It says it will work through the International
Air Transport Association (IATA) and other
industry partnerships to help make the emis-
sions scheme a success.
SIA chief executive, Chew Choon Seng,
has been driving the carrier’s environmental
agenda and taking part in the global debate
while SIA reviewed the potential for voluntary
carbon offset schemes at home.
He is adamant airlines must work together
to get the right message across. “It is a serious
issue and it deserves to be taken seriously,”
he told Orient Aviation. “The industry as
a whole has to consciously guard against
being cast as the whipping boy for other
agendas.”
Meanwhile Qantas Airways has been
studying a voluntary scheme – similar to
one already in operation at British Airways
– under which passengers can buy carbon
offsets for the greenhouse gases they produce
while flying.
‘We need a global approach that
provides a level playing field for
airlines and avoids competitive
distortions’
Giovanni Bisignani
Director General
IATA
They would do this by calculating,
through a section of the carrier’s website,
how many tonnes of carbon dioxide a trip
produces for the number of passengers flying.
Then the cost of offsetting the damage would
be set for each traveller. For example, a full
one-way flight between London and Sydney
would produce 3.84 tonnes of carbon dioxide,
which could be offset by paying US$55.18.
The money would be used to fund environmental
projects.
Qantas Airways chief executive, Geoff
Dixon, believes however that emissions
trading schemes are ultimately an issue on
which governments must rule. Qantas would
then comply with their requirements.
“Environmental performance is an
important part of our overall operations and
we are already focused on ways in which
we can reduce emissions,” he said. “We are
investing in new fuel-efficient aircraft, such
as the A380 and B787, which will deliver
emission reductions of between 15% and
20%. We have also established a fuel and
energy conservation group with a threeyear
target of A$100 (US$77.6 million) in
savings that will significantly reduce carbon
emissions.”
10 ORIENT AVIATION APRIL 2007

British Airways chief executive Willie
Walsh knows only too well how officialdom
can muddy the waters when it comes to
environmental matters. Head of the only
airline participating in a voluntary emissions
trading scheme, he is also paying a staggering
US$772 million a year to the British
government in Air Passenger Duty (APD),
a tax introduced on the back of lobbyists’
demands over environmental issues.
Walsh is furious about a decision taken in
December – it came into effect on February 1
– which doubles APD from $9.65 to $19.30.
Speaking to Orient Aviation in Tokyo, where
he was attending a meeting of oneworld alliance
CEOs, the fiery Irish-born airline chief
was happy to prove he has done his sums.
“If you look at our [BA’s] total CO 2
production, which is 16.1 million tonnes of
CO 2 a year, and if you look at the current
price of CO 2, which is about eight Euro
($10.50) per tonne, you can work out the
figure yourself,” he said.
“That $772 million would offset our total
CO 2 production four times. Passengers today
need to understand that governments – and
particularly the U.K. government – are
taxing them in the name of environmental
performance that goes way in excess of the
actual environmental impact of the airline.”
It is the sort of scenario airlines fear: that
more taxes and charges will be levied, with
the industry being used as a bank to provide
funds for the fight against global warming,
even though airlines are a minor contributor
to the problem.
Walsh and IATA want green taxes to be
replaced by emissions trading schemes written
with internationally accepted guidelines.
They may be on the verge of achieving their
goal.
Walsh was speaking just days after a
landmark two-week meeting of ICAO’s
Committee on Aviation Environmental
Protection (CAEP) which finally came up
with a consensus on guidelines countries can
use to incorporate international aviation into
emissions trading schemes.
These guidelines will go to the 36th
Assembly of ICAO – a division of the United
Nations – in Montreal this September, where
it is hoped governments will give them a
stamp of approval. Then it will be up to
individual countries to determine how they
should be implemented.
Walsh welcomed the breakthrough, as did
IATA director general, Giovanni Bisignani.
“We’re pleased that ICAO has echoed
IATA’s call urging states not to jump the
gun on emissions trading, but to wait for
the ICAO Assembly’s recommendations
in September,” said Bisignani. “Unilateral
action by states is not the answer. We need
a global approach that provides a level playing
field for airlines and avoids competitive
distortions.”
The IATA chief’s comments were later
taken up by the organisation’s communications
director, Tony Concil. “As an industry
we are against taxes and charges. However,
if there are economic measures that need
to be taken, a properly designed emissions
trading scheme probably offers the best way
forward,” he said.
‘The industry as a whole has
to consciously guard against
being cast as the whipping boy
for other agendas’
Chew Choon Seng
Chief Executive
Singapore Airlines
How would that be defined? “The
first thing would be that it is globally
harmonized,” said Concil. “This doesn’t
mean we want to have one scheme for the
entire world.
“Rather, all airlines should be treated in
the same way once governments have chosen
which scheme to introduce.
“We wouldn’t want to have the Australian
government say aviation has to buy 100% of
its permits and aviation needs to pay $150
per permit, then have the European Union
say you can get 50% of your permits free and
we’re going to charge you 10 Euros for the
remainder. That would create a playing field
that was not level,” he said.
The fear that a number of governments
may go it alone is not unfounded. Some
authorities have even suggested trading
schemes that would apply only to airlines,
a move that is firmly resisted by IATA. It
believes there must be a multi-industry
emissions market.
The European Parliament originally
drafted a “closed, aviation-only” emissions
trading scheme. However, the final proposal
saw an enormous change in the way aviation
will be treated, with a far more level playing
field. It also recognized that ICAO is likely
to come up with global standards.
Some airlines are strongly against
emissions trading, but they still prefer it
to draconian taxation. “If governments are
going to impose an environmental tax, the
result has to be that making the industry more
expensive is going to deter people from flying
and we don’t think that’s a good thing,” said
Concil. “Emissions trading on the other hand
offers an incentive to be more fuel efficient
and to invest in new technology.”
The new guidelines focus on those aspects
of emissions trading related to issues specific
to aviation and provide preferred options
for the trading systems. In essence, they lay
down rules for how emissions are counted for
individual airlines and how foreign carriers
would manage the issue in each country.
While emissions trading is central to
aviation’s role in fighting global warming,
it is only part of the story. Carriers remain
deeply concerned about the portrayal of
the industry by green activists and some
politicians as the industry causing the most
environmental damage.
In response, airlines are:
• Vigorously pursuing fuel saving policies
to reduce fuel use.
• Lobbying authorities for improvements in
air traffic management that could cut tonnes
of emissions.
• Looking to push technical advances
in aircraft and engine design to improve
efficiencies, save fuel and cut costs and
emissions.
• Launching an innovative advertising
campaign to put over their point of view and
get the “true facts” of aviation’s contribution
to the environmental issue understood (see
separate story).
IATA’s Bisignani sees all these as pieces
of the environmental puzzle. “Efficiency
must be our common vision in limiting the
2% of CO 2 emissions attributed to aviation,”
he said.
“The Intergovernmental Panel on Climate
Change [which issued a report earlier this
APRIL 2007 ORIENT AVIATION 11

MAIN STORY
A strong message – with a twist
Danger CO 2 W. That offbeat message, along with six
others, is winging its way into the media on behalf of
international airlines. The point the carriers are making:
airlines produce just 2% of global CO 2 emissions – less than the
CO 2 produced by flatulence by cattle worldwide.
They are part of an innovative campaign – called “Flying’s
a wonderful thing” – born last year at a meeting of airline and
industry communications executives in Bangkok and designed
to demonstrate that aviation is taking practical measures to limit
its share of global emissions.
Organized by the International Air Transport Association
(IATA) with the backing of the industry – the main sponsors are
Airbus, Pratt & Whitney and Rolls-Royce – the adverts were
finalized earlier this year and details sent out to airlines around
the world last month.
The adverts, which are also available in poster form, will be
published in airline inflight magazines, enabling the industry to
deliver its message to some three billion air travellers each year.
IATA is also in the final stages of producing a short environmental
video that can be screened on inflight entertainment systems.
The messages are based on research conducted with 830
passengers from around the world.
The underlying theme is that airlines are small contributors to
the emissions problem. They are buying new, more fuel-efficient
A scene from IATA’s advertising campaign: airlines
produce less CO 2 than cattle
aircraft, while working hard to shorten routes and improve air traffic
control, and are taking other surprising steps to cut fuel use.
For example, one advert – with the heading “To preserve the
ice caps, we’ve cut down on the cubes” – points out airlines are
making a lot of small changes that, when applied over millions
of flights, make a big difference. “For instance, to make aircraft
lighter, we’ve even reviewed the number of ice cubes carried
onboard,” it says.
year finding global warming was real and
action was needed to reverse it] estimates
there is 12% inefficiency in air traffic
management globally.
“This means we produce up to 73
million tonnes of carbon emissions each
year by aircraft flying inefficiently due to
air traffic management limitations. This is
not acceptable.
“Emissions trading schemes only make
sense with efficient infrastructure. That
means a whole package of measures starting
with an effective Single European Sky,
more direct routes and sufficient capacity
to eliminate delays. Real results can be
achieved.
“Last year, IATA’s efforts to optimize
aircraft operations alone saved up to 15 million
tonnes of CO 2 emissions. Government
commitment to environmental issues must
go beyond emissions trading to investments
in infrastructure and technology. And we
must put an end to tax grabs made in the
name of the environment. Environment is
a serious issue, not an excuse to fill the cash
register.”
The Association of Asia Pacific Airlines
(AAPA), which represents 17 major operators
in the region, is also involved in joint efforts
to find solutions to environmental issues.
However, it is not fully convinced
emissions trading is the answer. The
AAPA’s official policy is that it seeks to
promote market-based options (MBOs)
such as new and improved technology
and enhancements to infrastructure and
procedure as an alternative to options such
as emissions trading, charges or any other
form of financial disincentive.
“Notwithstanding, consideration of
MBOs should be based on sound practical
judgement recognizing the principles of
equity and flexibility through proper cost
benefit analysis.
“Airlines alone cannot be made to
bear the burden on what is considered a
systematic responsibility to address emissions,”
it says.
‘The CO2 produced by aviation
is a fraction of the CO 2
produced by road transport’
Willie Walsh
Chief Executive
British Airways
Andrew Herdman, director general of the
AAPA, said that given the significant role
played by the Asia-Pacific in global aviation
“it is essential that the region’s views are
both heard, and carry proper weight, in this
important international debate.”
In Tokyo, BA’s Walsh, who believes the
environmental issue is the biggest single
challenge aviation has to face over the
next few years, rebutted the perception that
airlines are the single biggest contributor to
global warming.
“The reality is a million miles away from
that,” he said. “The CO 2 produced by aviation
is a fraction of the CO 2 produced by road
transport. Aviation is critical to the economic
success of the world.”
IATA figures in fact show that 80% of
aviation emissions are related to flights
over 1,500 kilometres for which there is no
alternative mode of transport.
Like others in the industry, Walsh fully
accepts airlines have a role to play in tackling
the CO 2 crisis. “If you look at BA, we have set
ourselves hard targets in terms of improving
our performance. In 1990 we set ourselves a
target of improving fuel efficiency by 30%
by 2010. We have already achieved a 27%
12 ORIENT AVIATION APRIL 2007

improvement,” he said.
The problem for airlines operating modern
fleets is most of the feasible fuel efficiencies
have already been made. Further advances
can only be small and achieved at high cost.
But other sectors – such as heavy industry,
power generation and residential energy
use – have technologies available that can
reduce emissions significantly and relatively
cheaply. Not only is the cost lower, but since
these sectors emit far more CO 2 than aviation,
the potential benefits are higher.
So IATA wants a system in which each
emissions-producing sector – or individual
business – has a capped allowance in tonnes
of CO 2 , and if it needs to emit more it must
purchase “permits to emit” from companies
or sectors that have earned them by cutting
emissions, or which have not used all their
capped allowance.
Meanwhile, it might be worth teaming up
with the opposition.
Airlines and green groups could make
a more powerful case if they were able to
jointly lobby governments and aviation
authorities on improvements to air traffic
control efficiency.
“What the airlines are asking to develop
is what a lot of these groups are hoping for,
said IATA’s Concil.
“The industry would not only like a
dialogue, it would also like to have them
onside. We should be natural allies.”
‘It is essential that the region’s
views are both heard and carry
proper weight in this important
international debate’
Andrew Herdman
Director General
AAPA
Global Emissions Trading Scheme
for the aviation industry
ICAO guidelines*
• Aircraft operators to be the accountable international aviation entity for purposes
of emissions trading.
• Obligations be based on total aggregated emissions from all covered flights
performed by each aircraft operator in the scheme.
• Countries, when deciding if an airline should be included in an ETS should
consider aggregate transport activity (e.g. CO 2 emissions) and/or aircraft weight
as the basis for inclusion.
• Countries start with an ETS which includes CO 2 alone.
• Countries apply the Inter-governmental Panel on Climate Change definition of
international and domestic emissions to measure greenhouse gas emissions as
applied to civil aviation.
• Countries need to put in place an accounting arrangement that ensures the
emissions from international are counted separately and not against the specific
reduction targets that countries may have under the Kyoto Protocol.
• Regarding trading units, countries will need to consider economic efficiency,
environmental integrity, equity and competitiveness when making a choice.
* Published by ICAO in February 2007.
European Union Emission Trading Scheme
(EU ETS)*
The EU ETS is the world’s largest multi-national greenhouse gas emissions
trading scheme.
Phase I (2005-2007) was introduced on January 1, 2005 and included 12,000
installations representing 45% of EU CO 2 emissions mainly including energy and
raw materials production.
Phase II (2008-2012) will be extended to all greenhouse gases, not just
CO 2 emissions.
Airlines flying on Intra-EU routes will required to become participants in the
EU’s ETS.
Phase III (post-2012)
Intended that all airlines flying into EU nations must participate in the EU
ETS.
Contentious Issues:
• Inclusion of international flights in the EU ETS from 2012, especially as some
countries have threatened retaliatory trade sanctions if they are included in the
legislation.
• Despite these negotiating difficulties, intra-European Union flights will come
under the scheme from 2011.
• Problems of ETS: how to determine emission cap on average aviation emissions
in the EU; applying the cap to countries or airlines/aviation; how to distribute the
allowances.
• Consumer acceptance of the extra costs, which will be added to ticket prices.
• Including greenhouse gases apart from CO 2 emissions. Among them are
nitrogen oxides (NOx) and the water vapour from aircraft condensation trails,
which contribute too to climate change.
Inter-government Panel on Climate Change (IPCC) has estimated the total
impact from aviation on climate change is about two to four times higher than the
effect solely of CO 2 emissions.
The IPCC has estimated that aviation contributes 3.5% of total “human
activites” to climate change and that this figure will rise to 5% by 2050.
APRIL 2007 ORIENT AVIATION 13

NEWS BACKGROUNDER
Questions over Qantas deal
Key shareholders call for better offer as deadline nears
By Tom Ballantyne
The US$8.7 billion sale of Qantas
Airways to a consortium
including equity high flyer
David Bonderman’s Texas
Pacific Group (TPG) was
hanging in the balance in late March as an
influential group of shareholders continued
to hold on to their stock, complaining the
A$5.60 (US$4.35) a share offer was too
low.
The deal, which is dependent on 90%
acceptance by existing stockholders,
will be derailed, at least for now, if they
do not change their minds by the April
3 deadline. Australian Airline Partners
(APA), the consortium behind the buy-out,
has repeatedly said it will not increase the
offer. APA director Bob Mansfield issued a
statement saying the price was final.
The three existing institutional investors
threatening the deal are UBS Global Asset
Management, Balanced Equity Management
and Maple Brown Abbott who own more
than 10% of Qantas’ shares between them.
Hitting stubborn resistance came as a
blow to APA, which had earlier cleared all
the regulatory hurdles that could also have
stalled its progress. Despite resistance in
some quarters, including from unions fearing
job losses, the buy-out had been given the
green light by the country’s competition
regulator, the Australian Competition
and Consumer Commission (ACCC), the
Australian government and the Foreign
Investment Review Board (FIRB).
The feeling among analysts and industry
insiders was mixed. Some felt resistance
by the remaining shareholders
would cause the deal to collapse,
while others believed the groups
involved would ultimately give
in. One local analyst, ABN
Amro’s Mark Williams, told
local reporters: “Although it
appears some shareholders are
unhappy with the offer, we think
it very unlikely shareholders will
risk a guaranteed return for an
16 ORIENT AVIATION APRIL 2007
Geoff Dixon:
still talking to
Vietnam
uncertain outcome that may not exceed the
offer price.”
The sale has caused emotions to run high
in Australia, caused mainly by fears Qantas
could fall into foreign hands. However,
the airline has to operate under its own
government statute, the Qantas Sales Act,
which limits foreign shareholdings to 49%.
The APA bid falls easily
within those limits. Foreign
shareholders would hold
40%, far less than the 46%
currently in the hands of
overseas investors. APA has
also given the government
legally binding undertakings
that the bulk of Qantas’
operations will remain in
Australia and has promised
it will not cut back domestic regional routes
or move major maintenance and engineering
work overseas.
The APA consortium is led by three
Australian firms, Allco Equity Partners
(35%), Allco Finance Group (11%)
and Macquarie Bank (less than 11%).
Offshore investors include TPG (less
than 15%), Canadian private equity
investor Onex Partners (9%) and
other foreign investment funds (less
than 15%).
Meanwhile it’s business as usual
for Qantas chief executive, Geoff
Dixon. Talks on the purchase of a
stake in Vietnam’s Pacific Airways –
majority held by Vietnam’s finance ministry
– were still going on, he told Orient Aviation
while in Tokyo for a oneworld alliance chief
executives’ gathering. “Our people have had
very, very constructive discussions with the
government and with representatives of
the airline. It’s still a work in progress,” he
said. “I hope something will be resolved
reasonably shortly.”
Pacific Airlines has
recently restructured
as a low-cost carrier
(LCC) and has only
two aircraft, an A320-
200 and a B737- 400.
It operates domestic
f lights bet ween Ho
Chi Minh City, Hanoi
a nd D a Na ng a nd ,
internationally, from Ho Chi Minh to Taipei
and Kaohsiung in Taiwan, although it wants
to add flights to Cambodia, Malaysia,
Thailand and Singapore.
If Qantas buys a stake, likely to be up to
30%, additional aircraft would be added,
insiders have said, and the airline might be
rebranded under the Qantas regional LCC
name of Jetstar Asia, becoming Jetstar Asia
Vietnam.
Jetstar Asia, based in Singapore, has
found it tough gaining rights to some
important markets, including China and
Indonesia. It could make significant inroads
by riding on the back of international rights
held by Pacific Airlines.
‘We think it very
unlikely shareholders
will risk a guaranteed
return for an uncertain
outcome that may not
exceed the offer price’
Mark Williams
ABN Amro analyst

NEWS BACKGROUNDER
Japan Airlines’ president, Haruka
Nishimatsu, has put his job on
the line, pledging to complete
restructuring of the national flag
carrier that should see financial
losses end by 2009.
TOM BALLANTYNE reports
from Tokyo on the tough task
facing him.
Nishimatsu’s
challenge
Asia’s bigge st ai rl i ne is
determined to shrink. That,
according to Japan Airlines
(JAL) president Har uka
Nishimatsu, is one of the keys
to dragging the national flag carrier back to
profitability after a series of safety incidents
during 2005 dented public confidence and
sent passengers scurrying to rival All Nippon
Airways (ANA).
Big jets must be replaced by smaller jets,
staff numbers have to be cut and a better
balance found between international and
domestic operations, Nishimatsu told Orient
Aviation in Tokyo last month.
That last element is probably the most
important, thanks to the volatility of
international operations. Domestic revenue
can add stability.
“Before JAL merged with Japan Air
System our ratio of business was two-toone
in favour of international operations.
It is now about 50-50. But that is still not
enough,” said Nishimatsu who took charge
of JAL last June, becoming its third president
in two years.
“In order to support the international
business it is necessary to increase the
percentage of our domestic business.”
Nishimatsu uses history to prove his
point. “Airlines such as Pan American, Swiss
Air and Sabena focussed on the international
side and did not have any domestic market to
speak of. We have seen the demise of these
carriers,” he said.
“Look at airlines today. At American
Airlines international business probably
represents 10% to 20% of their total
business. In the case of United Airlines
it is 20% at most. Even though European
carriers seemingly have a high percentage
of international business, a lot of that is intra-
Europe which is virtually domestic. So our
domestic business still represents a very low
percentage and it needs to be higher.”
Safety is another important part of the
equation. JAL will spend US$515.5 million
on improving safety systems between now
‘In order to support the
international business it is
necessary to increase the
percentage of our domestic
business’
Haruka Nishimatsu
President, Japan Airlines
and 2010 and Nishimatsu was keen to
emphasise that, although there had been no
major problems over the last year, the focus
would continue.
The JAL president wants the carrier to
return to the black by 2009 and is targeting
an operating profit of $756 million by 2011.
Increasing domestic revenue from high value
corporate customers is high on the agenda.
JAL is putting first class seats on
domestic flights for the first time and has set
up a special sales team to focus on attracting
executive travellers.
Coupled with this, the international fleet
will be downsized by the phasing out of
many of JAL’s 70 B747s in favour of smaller
capacity aircraft such as the B777 and B787.
That process has already started and is
paying dividends.
Last April JAL replaced B747s on routes
to Europe – London, Amsterdam, Frankfurt,
Paris and Milan – with B777s. “Since then,
the European routes have become very
profitable,” said Nishimatsu. “The number
of passengers dropped by just 1%, but load
factors went up from 75%-76% to 83%-85%.
And our operating costs on these routes
decreased by more than 10%.”
JAL has 30 B787s on order with another
20 options, as well as 30 B737-800s with
10 options. “At the end of 2006 large-sized
aircraft represented 58% of our fleet. By
2010 that will be reduced to 39%,” said
Nishimatsu.
JAL still has a long way to go to reach
profitability.
It lost $404 million in the year ending
March 31, 2006 and, although it reduced
operating losses in the three months to
December 31 to $116.5 million from $142.6
million in the same period a year earlier,
bigger improvements are required.
Substantial savings are expected through
staff cuts.
A new medium-term business plan
announced in February includes the
elimination of 4,300 jobs – some 8% of the
airline’s 53,000-strong workforce – saving
an estimated $429.5 million a year. This
will not involve outright sackings, although
in the short term early retirements will be
needed. Natural attrition should then take
care of the rest.
Revenue will also be boosted through
JAL’s membership of the oneworld alliance
which it officially joined on April 1, bringing
an estimated benefit of $25.8 million a
year through additional passengers from
connecting flights.
Whatever happens over the next few
years, one thing is certain: Nishimatsu’s job
is on the line.
When announcing his latest business
plan, he promised to resign if the company
failed to resume dividend payments by
fiscal 2010. As the third man in charge at
JAL in two years, he will have to reverse a
worrying financial trend if he is to stay in
the hot seat.
Page 40: Haneda boost for commuter jets
18 ORIENT AVIATION APRIL 2007

CARGO UPDATE
ANA ups the ante
Competition intense as Japanese rivals expand cargo fleets and services
By Charles Anderson
All Nippon Airways (ANA)
has launched its first direct
freighter service to the U.S.,
joining the competitive
Tokyo to Chicago route,
while both it and Japan’s other heavyweight
carrier, Japan Airlines (JAL), have
announced fleet plans and expansion of
services closer to home.
ANA is beefing up its northern summer
flights, mainly in Asia and to and from
China, adding a whopping 90% more
frequency than at this time last year, while
JAL says it is taking steps to build a new
business structure for its freight operations.
Both carriers are looking to expansions at
Tokyo’s Narita and Haneda airports in 2009
to boost their business.
Many of JAL’s B747 Classic freighters are
on the way out, to be replaced by B767Fs and
B747-400Fs as it too strengthens its regional
services.
ANA only acquired its first freighter, a
B767F, in 2002, after ending its agreement
with Nippon Cargo Airlines through which
it had channelled its freight operations. Last
year it formed a joint venture with Japan
Post, called ANA & JP Express, to operate
its fleet and carry express mail for the postal
company.
Its three-times-weekly service to
Chicago, using its fourth B767F which
arrived last October, is an important step
towards growing cargo into the third
“pillar” of its business after domestic and
international passenger operations.
Previously it only carried freight to the
U.S. in the bellies of its passenger aircraft
serving New York, Washington D.C., Los
Angeles and San Francisco. Last October
the carrier also resumed passenger service
to Chicago which had been suspended in the
wake of the 9/11 attacks.
The U.S. is Japan’s biggest trading partner
and Chicago acts as a gateway to booming
manufacturing areas where Japanese car
companies and car parts makers have set
up shop.
ANA Cargo: it has five B767-BCF conversions on order
It is also convenient for other freight going
to the midwest and south of the country.
Components assembled there are sometimes
sent back to Japan, leading to hopes that
return flights will attract reasonable levels
of freight.
“O’Hare International Airport is the
world’s number one airport in terms of the
number of arrivals and departures. It has an
extensive transfer network and is extremely
convenient, which enables Japanese
forwarders to provide the largest scale of
services there over other areas of the U.S.,”
said ANA’s Chicago branch general manager,
Naomichi Miyawaki, in comments carried
on the airline’s website.
ANA’s entry into the Chicago market
brings the total of weekly freighter services
from Japan to the East Coast city up to 21,
including those operated by JAL. ANA says
sales competition is intense.
Load factors to date have been “so, so”, an
ANA spokesman told Orient Aviation, and
return flights have attracted about one third
the amount carried to the U.S. No plans are
in place at present for a second dedicated
freighter route.
Instead, ANA is hoping to increase overall
carrying capacity by 72% compared to 2006,
adding immediate extra uplift through the
planned wet-leasing of two B767-200SFs for
use on China routes and short-haul services
to other parts of Asia.
Hong Kong and Taipei are now being
served six times a week; Shanghai, Dalian,
Tianjin, Seoul and Bangkok have five weekly
flights and a new Osaka-Kansai to Beijing
route will initially be given four.
ANA aims to have nine of its own
freighters in the air by 2010. It has five B767-
BCF conversions on order, using aircraft
retired from its passenger fleet following
the arrival of new B787 aircraft.
Meanwhile, JAL says it will retire five of
its old B747-200Fs – it has 9 in its fleet – over
the next financial year and will introduce
three new B767-300ER freighters it has
on order between now and March 2008. Its
fleet will boast 14 freighters by that time,
thanks also to the arrival of three B747-400
conversions.
The B767s will be used on new routes
to Tianjin and Qingdao in China, starting
in July and to Jakarta in October, stopping
over at Osaka’s Kansai and Nagoya’s Chubu
airports on their way from Tokyo to pick up
freight and help fulfil strong cargo demand,
says JAL.
Stopovers at Anchorage on the way to the
U.S. West Coast are being discontinued with
the replacement of B747-200s by the longer
range B747-400 freighters. Frequencies on
some East Coast routes have been reduced
while the B747-200s are being phased out.
20 ORIENT AVIATION APRIL 2007

CARGO UPDATE
Sri Lankan Cargo in need of more space
Sri Lankan Cargo is looking to expand its handling space
at Colombo’s Bandaranaike International Airport on
the back of five consecutive years of freight growth.
But a failure to agree over rent and other charges has
meant it is unable to move into a newly-built 150,000-
tonne facility nearby.
Total volumes handled at the airport by the freight wing of Sri
Lankan Airlines, for itself and other carriers, have increased from
102,497 tonnes in 2001 to 160,118 tonnes in 2005 and 167,289
tonnes in 2006, a 4.48% year-on-year increase in the most recent
instance. More than half the total throughput at the airport consists
of the carrier’s own freight. It expects to hit 100,000 tonnes on its
own behalf this year.
“Our current facility has over-run its capacity and we are in
negotiations with the airport authority to annex a custom-built
facility,” said Nalin Rodrigo, head of worldwide cargo, who
would not comment directly on the problems reported elsewhere
in securing an agreement. “It is now crucial that we expand our
handling facilities very soon.”
Sri Lankan, the largest foreign carrier operating into India, has
positioned Colombo as a freight hub linking its giant neighbour
with Europe, the Gulf, Southeast Asia, China and Hong Kong.
While Rodrigo sees that continuing, mainly through bellyspace
freight on services to 10 Indian cities, but also via dedicated
services with an Anotov AN12F, he accepts that expansion
into the cargo business by Indian carriers will have an affect.
“Domestic freighter operations will certainly influence the way
we do business,” he said.
Cargo contributes 15% of Sri Lankan’s total revenue, with
electronics, car components, garments, pharmaceuticals and fruit
and vegetables the most common goods carried.
It has now started charter operations to South Asia, to give
access to more remote locations out of the reach of its scheduled
services.
DHL in China breakthrough
By Charles Anderson
Global cargo giant DHL
has become the f irst
international forwarder
to launch a domestic air
freight service in China,
using uplift provided by the country’s four
major airlines or their offshoots. Rivals
FedEx, UPS and TNT are expected to do
the same.
The domestic air freight licence granted
by the China Air Transport Association
(CATA) allows DHL Global Forwarding
to operate within 17 Chinese cities on its
own account. DHL aims to increase that
to 30 licensed branches and warehouses,
covering 70 cities – many of them second or
third tier – within five years, giving it a 10%
market share.
The German-owned company will now
be able to provide a self-contained service
for international clients, especially those
shifting their manufacturing into China’s
under-developed areas and particularly in
its western regions.
In January, CATA gave the green light for
Hong Kong and Macau air freight forwarders
to set up joint venture or wholly-owned
enterprises to operate domestic services,
DHL is on its way to more Chinese cities
through the Closer Economic Partnership
Agreement between China and Hong
Kong.
This signalled the first opening of a
market estimated to grow at more than 10%
a year over the next two decades. DHL,
however, was given its licence through its
existing joint venture – Danzas Z F Freight
Agency – with its long-term state-owned
partner, Sinotrans.
Previously, domestic operations were the
domain of state-owned and local companies
and outsiders like DHL had to work through
local agents to reach the 23 cities in its current
network. “With approved licences to provide
air freight services within China, we can now
provide an end-to-end solution for our
customers,” said a spokesperson.
Freight will be carried by Air China
Cargo, China Eastern Airlines’ China
Cargo Airlines, China Southern Cargo
and Shanghai Airlines using Beijing,
Shanghai, Guangzhou and Shenzhen as
major hubs.
“This investment is part of the US$20
million [investment] announced earlier for
DHL Global Forwarding and it signals a
breakthrough for us in the logistics
industry in China,” said the spokesperson.
“China has become an important logistics
market following a wave of regulations being
lifted in anticipation of further growth.”
Meanwhile, Belgian express carrier
TNT will take delivery of its second leased
B747-400ER freighter in May to be based
in Shanghai and used on its main China
to Europe route. The first, supplied by
Guggenheim Aviation Partners on a 10-year
lease, began service in January on a new direct
service from Pudong International Airport to
the company’s hub in Liege, Belgium.
Currently the service is operating three
times a week. The arrival of the second
aircraft will bring that total to five. Freight
carried for other airlines may eventually lead
to nine weekly services.
22 ORIENT AVIATION APRIL 2007

SPOTLIGHT ON THE GULF
HOGAN’S
BALANCING ACT
Etihad’s new boss must keep expansion on track – and make the start-up pay
By Tom Ballantyne
Ask Etihad Airways’ recentlyappointed
chief executive,
James Hogan, anything
about his young airline and
chances are he will give a full
answer; except when it comes to the details
of its financial performance.
Yes, Hogan will tell you, the national flag
carrier of the United Arab Emirates (UAE),
launched in 2003, is losing money. But that’s
about as far as he will go.
“The mandate I have is to consolidate
and like any good shareholder they [the
government] want to see the airline break
even and make a return. That’s the clear
brief I have,” said Hogan, the Australianborn
former Gulf Air chief executive. “We
haven’t published any [financial] figures, but
you can imagine, starting up with an airline
as we have, there are a lot of capital costs. It’s
not in profit yet, but there is a clear mandate
to bring it to break-even and profitability.”
When does he expect to do that? “We
haven’t made that public yet. I’ll tell the
shareholders first and then I’ll tell you,”
Hogan quipped to Orient Aviation from
his office in the UAE capital, the Emirate
of Abu Dhabi.
A new carrier striving to get into the
black, however, has some advantages.
“Being a new airline means we don’t have
legacy systems,” he said. “We have been able
to outsource engineering. We have been able
to take advantage of information technology.
We are running a pretty lean team in terms of
administration and the back room.”
Despite this shadow boxing on money
matters, one thing is clear. Etihad was given
enough seed money by its owners, the Abu
Dhabi government, to ensure it could lay the
ground work necessary to pursue its aim of
forging a global network, making its home a
major international transfer hub and taking
Etihad chief executive
James Hogan: no profit
to announce as yet
its place among the best full-service carriers
in the world. “The airline was set up with
capital by the government and we still have
access to that capital,” said Hogan.
The carrier’s initial paid-up capital was
500 million UAE Dirham (US$136.1 million)
and doing things by half measures was not on
the agenda. In 2004, Etihad placed a $1.09
billion order for five B777-300ERs – the last
was delivered in May 2006 – alongside a $7
billion order for 24 Airbus jets: four A340-
500s, four A340-600s, 12 A330-200s and
four A380s.
The network grew at a staggering rate
as the aircraft came rolling in, with 30
‘The mandate I have is to consolidate
and like any good shareholder they [the
government] want to see the airline
break even and make a return.’
James Hogan
new destinations added in 30 months.
Today, with a fleet of 22 passenger jets and
three wet-leased A300-600F freighters,
Etihad operates to 48 passenger and cargo
destinations. The latest addition was Sydney,
launched last month.
Last year alone it added 16 new
international destinations: New York, Paris,
Casablanca, Khartoum, Jakarta, Islamabad,
Lahore, Peshawar, Manchester, Doha,
Jeddah, Muscat, Riyadh, Tehran, Dhaka
and Manila. Kuala Lumpur came on line
in January and Etihad expects to carry four
million passengers – it calls them “guests”
– this year.
Its freight division, Crystal
Cargo, has continued to grow
at an astonishing rate, with
an estimated 100,000 tonnes
transported in 2006 compared
to 20,000 tonnes in 2004. That
figure is expected to top 200,000
24 ORIENT AVIATION APRIL 2007

tonnes this year.
“The big ramp-up is this year,” said
Hogan. “We are taking on another 10 aircraft
in 2007. That’s an improvement in available
seat kilometres (ASKs) of nearly 50%. By the
end of this year we will be a US$1.2 billion
company as far as revenues go. So the key
now is to consolidate and knit the company
together.”
Hogan has a track record that suggests
he can do just that. He came to Etihad last
October from Gulf Air in Bahrain, where
he spent four years as president and chief
executive, turning a virtually bankrupt
company into a profitable one, redefining
and restructuring it along the way.
He first entered the airline business in
1975 when he joined Ansett Australia and
later held senior executive positions in the
car rental, hotel and airline industries in
Europe with Hertz, Forte Hotels and bmi
British Midland.
Hogan returned to Australia in 2001,
named as chief executive-elect of Ansett
after the liquidators were called in. But
prospective new owners failed to get the
carrier flying again and he was quickly
hired by Gulf Air, taking charge there in
May 2002.
At Etihad he faces different challenges
from those at Gulf, which had a conservative
approach to expansion. “Every business is
different. It was different at British Midland,
or at Ansett many years ago. The opportunity
for me here is quite exciting,” said Hogan.
With most of the aircraft on order due to
be in the fleet by year’s-end, there will be
a slowdown in capacity expansion in 2008.
The next big intake will come in 2009 when
the A380s begin arriving. Etihad signed up
to take four development aircraft (MSN002,
004, 007 and 009) so it could get them early.
First delivery was originally slated for early
2008, but Airbus’ problems have impacted
on Etihad as they have on everyone else. It
now expects to receive its first A380s in early
to mid 2009.
Hogan isn’t ready to say what specific
routes they will fly, but after launching
more than one new route a month since it
began operations, Etihad is now looking
to consolidate its presence. It will still add
destinations, but for this year the focus is
on providing frequency and connectivity
through Abu Dhabi to link points across the
Asia-Pacific, one-stop through the Gulf, to
the rest of the Middle East, Europe and North
America.
“We are going into two or three Indian
Etihad’s A380s will be late arriving: it has four on order
cities and we will improve our frequencies
into Pakistan. We’ll be operating later this
year into Milan and, at the back end of the
year, to Shanghai,” he said.
The addition of Sydney and Shanghai
will complete Etihad’s current plans for the
region. It already operates to Jakarta, Manila,
Kuala Lumpur and Bangkok.
“Out of Asia, if you take the Philippines
and Indonesia, and Thailand to a degree, a lot
of that traffic is worker traffic and religious
traffic,” said Hogan. “The connectivity
into Saudi Arabia, to Jeddah, Damman
and Riyadh, is very important.” Those
‘It’s not a new Dubai, or the
next Dubai. They [Abu Dhabi]
are finding their own space
and they recognize the role we
have to play in moving traffic
over the hub.’
James Hogan
frequencies will be built in the second half
of the year.
Malaysia is also an important market due
to the strong business traffic between Kuala
Lumpur and the Gulf.
Meanwhile Etihad is looking to expand
its network through bilateral co-operation
with partner airlines. For instance, Hogan
is currently in talks with Qantas Airways,
which doesn’t fly to the Gulf, about a new
code-share arrangement which may also link
the two carriers’ frequent flyer schemes.
With all this activity it would be easy to
see Abu Dhabi as another Dubai, home of
Emirates Airline and regarded as the most
ambitious member of the Gulf aviation family.
That’s not the case, according to Hogan.
“It’s not a new Dubai, or the next Dubai.
They [Abu Dhabi] are finding their own
space and they recognize the role we have to
play in moving traffic over the hub,” he said.
“It’s important to remember that Abu Dhabi
is the capital of the Emirates and 80% of the
area is in fact the Emirate of Abu Dhabi.
“During the next nine years major
investments in excess of $136 billion
will be invested in Abu Dhabi alone in
infrastructure, tourism, manufacturing
and services. The Gulf is a natural bridge
between North America, Europe, the Middle
East, Asia and Australasia. Building on the
opportunity not only in tourism and trade, we
believe we are opening a new gateway.”
Neither does Etihad intend to be left
behind in terms of the product and service it
offers. Being high quality is a major priority.
“Because we have new aircraft, the product
is brand new,” said Hogan. “The inflight
entertainment (IFE) is a fantastic offering.
We have young cabin crew. They are very
enthusiastic because we are only three years
old. We believe our offering is truly world
class.”
His claim is backed by market response.
In the annual World Travel Awards, Etihad
was named the World’s Leading New Airline
of the Year in 2004, 2005 and 2006. It also
won the World’s Leading Flatbed Seat Award
in 2006.
For Hogan, the biggest challenges with
any start-up airline revolve around the brand:
getting it known in the marketplace, making
sure travel agents understand the network
and corporate travellers realise what Etihad
has to offer. “We come to the market new,”
he said. “We come to the market competitive.
And we come to the market for the long
term.”
APRIL 2007 ORIENT AVIATION 25

SPOTLIGHT ON THE GULF
First LCC steps up the pace
IPO will fund fleet expansion as Air Arabia seeks more routes
By Tom Ballantyne
Adel Ali, chief executive of
the Gulf region’s first lowcost
car rier (LCC), Air
Arabia, is more than happy
with the strides it has made
since its launch in October 2003 with a single
flight from Sharjah to Bahrain. In its first 18
months it carried one million passengers.
That went up to 1.7 million in 2006. This
year the total should hit 2.2 million.
With a fleet of eight A320s – two more
arrive this year – the carrier now operates
to 33 destinations in 20 countries. But Ali
believes Air Arabia must take a further step.
“Now is the time to move to the next stage,
expand and add assets,” he said.
By next month the airline – currently
owned 60% by the government of Sharjah
in the United Arab Emirates (UAE) and
40% by Sharjah International Airport – will
have become the first operator in the Gulf
region to go to the market, with an initial
public offering of 55% of its shares. Ali
won’t say how much it expects to raise, but
he confirmed that the money would be used
to finance expansion and add 25 aircraft,
worth more than US$1 billion, to its fleet,
bringing the total to 34.
Despite its early success, further growth
could prove tough going. Speaking in
Kuwait, Ali told Orient Aviation a number
of challenges remained. “There is a serious
shortage of regional airport facilities,
secondary airport infrastructure that would
allow low-cost operators to widen their
breadth of operation. At the moment we
mainly have to fly to primary airports in
competition with full-service airlines, or
seek out niche markets that others may have
ignored,” he said.
A regional open skies regime and
relaxation of regulatory restrictions that
placed limits on operations were also needed.
“Markets need to be liberalized,” Ali said.
Despite these limitations, Air Arabia has
shown itself to be a smart network planner.
Some 18 of its routes are within the Arab
world, flying from Sharjah throughout the
Air Arabia: it wants to add 25 aircraft
Gulf, North Africa and the Middle East. It
has also placed a solid foot at India’s door,
now operating to six destinations: Jaipur,
Kochi, Mumbai, Nagpur, Chennai and
Thiruvananthapuram. The last two were
added in November and Ali plans more.
Air Arabia also flies to Colombo in Sri
Lanka and has ventured further afield, to
Kazakhstan, Turkey, Afghanistan, Nepal
and Armenia.
The carrier is seeking further flying rights
in the Middle East, Kazakhstan and South
Asia, including to Riyadh, Jeddah and the
Qatari capital, Doha.
Its growth has been achieved profitably.
Air Arabia made US$8 million in 2005 and
expects to beat that with its 2006 figures
It is modelled on the standard budget
airline principles used by LCCs in Europe
and North America, adjusted to cope with
local regulatory conditions. All ticketing is
electronic, through the Internet and travel
agents. But it strives to make the process as
simple as possible. For example, under an
‘We mainly have to fly to primary
airports in competition with
full-service airlines, or seek out
niche markets that others may
have ignored’
Adel Ali
Chief Executive
Air Arabia
agreement with Emirates Post, the postal
operator for the United Arab Emirates,
passengers can buy tickets at any post
office.
Ali, who pointed to Sharjah’s proximity
to the region’s major hub at Dubai, wants
Air Arabia to be known for its low fares –
30% to 40% below standard ticket prices
– and costs are managed ruthlessly. This is
difficult at times because, like all carriers,
Air Arabia is paying a high premium for fuel
and, operating mainly into primary airports,
it has to pay the same landing and parking
fees as traditional airlines.
R ig ht now A i r A r a bia h a s l it t le
competition in the LCC sector. The only
other operator in the Gulf is Kuwait’s Jazeera
Airways. Launched in 2005, it has 10 A320s
flying to eight destinations.
But that situation may soon change. In
December, Saudi Arabia awarded private
carrier National Air Services (NAS) a
licence to operate domestic flights from
Riyadh. NAS hopes to begin flying early
this year as an LCC with five aircraft,
operating to 22 Saudi destinations and
aiming for a network of 37 domestic routes
with an 18-strong fleet by 2010.
No timetable for inter national
expansion has been released, but NAS has
indicated it also wants to operate low-cost
flights to other areas in the Gulf and the
Middle East. Air Arabia could be facing
some tough competition before long.
26 ORIENT AVIATION APRIL 2007

SPOTLIGHT ON THE GULF
By Tom Ballantyne
Sheikh Talal Mubarak Abdullah
Al-Ahmad Al-Sabah, chairman
and managing director of Kuwait
Airways (KU), has US$1 billion
in the bank. The problem is he
can’t get his hands on it. Nor is he relying on
any of the cash arriving soon.
T he money is owed to Kuwait’s
government-owned carrier under a British
High Court compensation ruling in January
last year. It ordered Iraq Airways, the national
carrier of Kuwait’s strife-torn neighbour, to
hand over $1 billion for the theft of aircraft
during Saddam Hussein’s 1990-91 invasion
and occupation of Kuwait.
The judgment, part of protracted litigation
by KU, related to two A300-600s and two
B767-200ERs destroyed by allied bombing
in early 1991 while parked at the northern
Iraqi city of Mosul. Iraq had evacuated six
other seized Kuwaiti aircraft – five A310s
and an A300-600 – to Iran to avert their
destruction. They were returned to Kuwait
in 1992, but KU had to pay Iran $20 million
in parking and maintenance costs.
Sixteen years after the invasion the airline
is still suffering from the hangover of a war
that destroyed 85% of its assets: invading
Iraqi troops looted or destroyed all the
airline’s premises and 15 of its aircraft.
Take that $1 billion. KU’s London
solicitors, Howard Kennedy, are still trying
to have the High Court judgment enforced
and Sheikh Talal said he had no idea when
the compensation might finally be paid, if
at all.
Meanwhile KU remains mired in
ongoing losses and saddled with a heavy
debt burden, the result of the government
forcing it to take out a $1.4 billion loan to
replace aircraft lost during the invasion. The
last year it made money was in 2000, when
it reported a $77 million profit partly due to
earlier compensation it received for Gulf
War damages.
Since then the bottom line has been firmly
written in red ink, although the size of the
deficit is being clawed back. The carrier
expects to lose around $93.7 million in
the financial year ending March 31, 2007,
down from $135.4 million the previous year.
“However, we are projecting a marginal profit
in the 2007/08 year, providing fuel costs stay
at the same level,” said Sheikh Talal.
Fuel prices have played their part in
hampering recovery at an airline which
operates a 17-strong fleet – made up of four
Kuwait’s national carrier keeps rebuilding
as it waits for $1 billion compensation to come
Still struggling
with legacy of war
A340-300s, five A300-600s, three A310-
300s, three A320-200s and two B777-200s
– as has government indecision over when
privatization will occur.
T he lat t e r p oi nt is p a r t icu la rly
frustrating for Sheik Talal. Little wonder.
The government announced plans to sell off
60% of the airline way back in 1998, with the
remaining 40% to be sold “progressively”
over time. Eight years later, not one share
‘Without privatization we are
moving forward, but it is one
step at a time’
Sheikh Talal
Chairman, Kuwait Airways
has been offloaded and no date has been set
for a share offering.
“It is very, very frustrating. We haven’t
made any progress at all,” Sheikh Talal told
Orient Aviation. “Without privatization we
are moving forward, but it is one step at a
time. Whatever decisions have to be made are
slowed down by politicians and bureaucrats
as they pass through government processes,
audit bureau and tender committees.”
Privatization would allow the carrier
to move on to a commercial footing and
implement plans for re-fleeting and network
growth, he said. A strategic partner –
probably an international airline – would
bring “added value in terms of expertise.”
Earlier this year the Kuwaiti Ministry of
Planning did endorse a study into the carrier’s
route network and operational plans over the
seven years from 2008, a move designed to
determine which aircraft it will need. “We
want to simplify the fleet from the existing
five types to just two types. We are looking
at aircraft such as the B787 and the A350,”
said Sheikh Talal.
The airline also needs to increase
capacity to take full advantage of airport
development plans. Kuwait has earmarked
$2.1 billion to double the capacity of its
international airport from five million to 10
million passengers annually.
One investment is already being made;
$43 million will be spent upgrading aircraft
seating and introducing an audio video on
demand (AVOD) inflight entertainment
system in the long-haul fleet. “We need to
keep up with the competition. We are well
aware of the level of service now being
offered by carriers such as Emirates Airline
and Qatar Airways,” said Sheikh Talal.
But, in the near future at least, KU is
unlikely to have the money to match its
other plans. Before the Iraqi invasion in
1990, it had a fleet of 21 aircraft flying 1.5
million passengers and 50,000 tonnes of
freight annually to 21 destinations in 35
countries. Overnight, its network virtually
ceased to exist.
Today it has been rebuilt to cover 41
destinations, four served through code
shares. It now carries 2.5 million passengers
and 70,000 tonnes of freight.
KU’s recovery has been remarkable, but
competition in the Gulf is fierce and, until
critical decisions are made by government
and new investment dollars arrive, the job
remains only half done.
30 ORIENT AVIATION APRIL 2007

SPECIAL REPORT
Safety
PLAYING CATCH UP
Events in Indonesia show that safety records in some developing countries
do not match those across the region. Help, however, is at hand.
When a Garuda
Indonesia
B737- 400
overran the
r u nway on
landing at Yogyakarta airport and
caught fire last month with the loss
of at least 22 lives, it drove home
the dilemma that faces emerging
countries.
How can their governments
frame and then enforce safety
standards to match their airlines’
growth? It’s an important question
in a region that generally wins nods
of approval for its overall record.
And it is one that has led industry
heavyweights to pull together to
support the countries’ own efforts.
The line-up is impressive:
the International Civil Aviation
O rga n isat ion ( ICAO), t he
Inter national Air Transpor t
Association (IATA), Flight
Safety Foundation (FSF) and
the Association of Asia Pacific
Airlines (AAPA) are all involved
in initiatives that don’t just aim to secure
improvements across the board in the region.
They are also homing in on individual states
where guidance at airlines, airports and
regulators is most needed.
And while no one wants to highlight
a particular country, Indonesia’s recent
domestic track record is difficult to avoid.
The Yogyakarta tragedy was the fourth
major accident in the country in the last 27
months. It showed that even an established
carrier like Garuda, which appeared to have
upped its safety standards after a sticky
period in the late 90s, is not now immune.
The three other fatal accidents involved
low-cost carriers. In January, an Adam Air
B737 plunged into the sea off Sulawesi with
32 ORIENT AVIATION APRIL 2007
Garuda Indonesia’s crash in March highlighted the
country’s recent poor safety record
the loss of 102 lives. In September 2005,
a Mandala Airlines B737 crashed into a
residential area after take-off from Medan
killing 147 people. And in December 2004,
26 people died when a Lion Air MD-82
skidded off a runway after landing in the
Java city of Solo.
Also, last December a Lion Air B737 was
badly damaged when it made a hard landing
at Makassar. Then in late February, all seven
of Adam Air’s B737-300s were grounded for
safety checks by air transport officials after
the fuselage of one of its fleet cracked during
a hard landing in stormy weather at Juanda
National Airport in Surabaya.
These, taken along with lesser runway
incidents and the case of another Adam
Air B737 which lost its way over
the island of Java in early 2006,
have led to concerns that an
industry expecting a 15% increase in
domestic passengers this year may
be expanding too fast for its own
good, especially where its low-cost
carriers are concerned.
Press reports have continued to
claim that some safety standards
are being compromised. Pilots are
said to have quit Adam Air over such
concerns. Criticism is growing that
poor enforcement of regulations is
to blame for Indonesia’s woes, rather
than a lack of rules.
The Adam Air grounding led
Transport Minister Hatta Rajasa to
propose a 10-year age limit on all
aircraft flown by Indonesia’s carriers,
a move which would effectively
ground some 80% to 90% of the
country’s fleet and which attracted
considerable criticism for ignoring
the fact that proper maintenance
programmes, rather than age, are
the key to safe flight.
Even before the Garuda crash, the
Indonesian National Air Carriers Association
had called on the government to commission
an international company to run a complete
safety audit of the civil aviation industry,
including regulators, administrators, operators,
airports and air traffic control.
The country’s National Transport Safety
Committee also blamed under-funding for
the slow pace of investigations into air and
sea accidents. It completed investigations
into only 11 of 48 air incidents from 2004
to 2006, the Jakarta Post reported. Its new
head, Tatang Kurniadi, who was appointed
the day before the Garuda crash, is leading
the investigation into its cause.
Bill Voss, a former ICAO director

By Charles Anderson
of air navigation and Federal Aviation
Administration (FAA) executive, who is
now president and chief executive of the FSF,
wants all this to be taken in the context of a
natural environment that contains hazards
connected to weather and terrain and a safety
record that had, over the long-term at least,
been showing an improvement.
“But the rash of incidents and the recent
accidents do start to raise some real concern
about the state of the industry there, the level
of oversight and the state’s ability to keep
up,” he said.
The government was taking action,
as were others from outside the country.
“Any number of people are reaching out to
Indonesia to try to provide assistance and
Indonesia seems ready to take it. That’s
all very positive, but, just from a safety
standpoint, when you step back and look at
the indicators, not just the major accidents,
but the runway incidents, the high profile
incidents, they show some work really needs
to be done.”
The Garuda tragedy has, in fact, brought
even more help Indonesia’s way, if only
on a temporary basis. Representatives
arrived quickly from Boeing, the Federal
Aviation Administration and the U.S.
National Transportation Safety Board, to
help investigate. Flight data and cockpit
voice recorders are now being studied by
the Australian Transport
Safety Bureau in Canberra. A
number of Australians died in
the crash.
Voss, who joined the FSF,
the independent, non-profit
organization that pushes
safety research and initiatives
worldwide, last June, wants
regulators in general to take
their share of the load.
“I’m grateful that Indonesia
is stepping up. Other states
around the region need to learn
from this example and temper
their growth. Liberalization of
airlines was never intended to
create unbridled growth. It
was assumed a regulatory
regime would be there, able
to act and able to moderate
it,” he said.
“What is very important
in a rapidly growing economy like the Asia-
Pacific is the development and maintenance
of really good safety oversight right across
the board. That’s why there should be a strong
emphasis, not just on the airline industry, but
also on the regulatory authorities to make
sure they grow in proportion to the rapidly
growing carriers.
“It’s not a new thing and it’s not unique to
this region. The FAA had the same problem
in the U.S. when low-cost carriers became a
new phenomenon.
“My concern is to make sure proper care
is taken with the regulatory
authorities and also that
they develop good and
careful relationships with
new carriers in terms of
the new safety management
provisions that are
being promoted and are
absolutely essential.
“It requires a joint effort
and joint development
‘Any number of
people are reaching
out to Indonesia
to try to provide
assistance and
Indonesia seems
ready to take it’
Bill Voss
Chief Executive
Flight Safety Foundation
A tough six days …
• A Garuda Indonesia B737-400 crashed at Yokyakarta on March 7, killing 22
passengers after it overran the runway. The pilot later reported a powerful
downdraft occurred before a landing which saw the 15-year-old aircraft’s nose
gear break off and a fire start.
• Dubai airport, one of the world’s major hubs, was closed for eight hours on March
12 after a Biman Bangladesh A321 reportedly blew a front tyre or suffered from
a landing gear collapse while attempting takeoff. Fourteen passengers suffered
minor injuries.
• The Bombardier turboprop fleets operated by All Nippon Airways (ANA) and
Japan Airlines (JAL) were grounded for two days for checks after a wheel door
failed on an ANA Dash-8 Q400, forcing it to land on its nose at Kochi in Japan
on March 13. No one was hurt, but at least 80 flights were cancelled.
between the industry and
the regulator. If they don’t
get it right, we are going to
have some difficult times.”
W h i le G ü nt her
Matschnigg, IATA senior
vice-president for safety
operations and infrastructure,
agreed countries with
rapidly developing aviation
markets have specific needs,
he didn’t want to single out
Indonesia. “We’re willing and able to work
with any country that may need assistance,”
he said. “Development is good, but it’s how
to manage this development, how to manage
the growth. If it goes too fast, then we have
to be careful. Our IATA Operational Safety
Audit (IOSA), for example, is a valuable tool
that can help countries manage their airline
safety oversight responsibilities.”
IATA and ICAO split responsibilities
when they agree there is a safety issue in a
country or area. ICAO deals with the regulators
and the official side, while IATA focuses
primarily on airlines. It has also created a
“partnership for safety programme”, funded
by IATA itself with help from Boeing, Pratt
& Whitney and others.
“We do gap analyses with the airlines,
telling them where they are compared to the
IOSA standards. Then we go in, give them
training and help them,” said Matschnigg.
He was also anxious to underline the
strength of the Asia-Pacific’s current safety
record. “It shouldn’t be perceived as an
unsafe area, because it is not. It has a very
good safety record,” he said. “There’s always
somewhere that concerns us more than others
and we have to address this. But if you look at
the general accident rate [in the region], it is
very low compared to other areas,” he said.
Martin Eran-Tasker, AAPA technical
director, believes a lack of resources may
be hampering regulators in expanding
countries. “With aviation growth and
the proliferation of new entrants within
the region, resources to provide effective
APRIL 2007 ORIENT AVIATION 33

SPECIAL REPORT
Safety
regulatory oversight may be stretched
in some states due to a lack of financial
and human resources and inexperienced
technical personnel,” he said.
“To respond to this situation we are not
suggesting reducing the number of operators,
but rather the consideration of the better use
of available resources and expertise within
the region.” That could come through
delegation and sharing of the responsibility
for regulatory oversight, without giving up
overall accountability.
Joint efforts elsewhere would help too.
“Further improvements can be gained by
the harmonization of regulatory requirements
such as Part 145 requirements and the
mutual acceptance of regulations,” he said.
“For future consideration could be the creation
of a body similar to the Joint Aviation
Authorities, which would enable better use
of the region’s expertise.”
Indonesia, he said, was working hard
to improve its safety performance, as were
other states. “It has seen significant growth
of its aviation industry, resulting in positive
economic benefits,” said Eran-Tasker.
“However, with this rapid growth comes
regulatory challenges and pressure on
available resources.”
It was benefitting from its active membership
of ICAO’s Cooperative Development
of Operational Safety & Continuing
Airworthiness Programme (COSCAP),
which works at providing technical services
and safety oversights to member states.
Eran-Tasker listed three initiatives other
than COSCAP at work in the Asia-Pacific
that target increases in safety standards:
• The Universal Safety Oversight Audit
Programme (USOAP), also under the ICAO
umbrella, which audits safety aspects of all
ICAO’s annexes, except those dealing with
security. Malaysia and Thailand passed
muster in 2006 while other countries in
Adam Air: Plane lost, B737-300 fleet grounded
34 ORIENT AVIATION APRIL 2007
Chinese pilots at training school: the industry needs more
Pilot shortage a big concern
Potential shortages of pilots and mechanics are of increasing concern to those
whose business it is to ensure proper safety standards in the Asia-Pacific.
“That’s probably the issue that is most on people’s minds now. And it’s not an
easy thing to turn around,” said Flight Safety Foundation president and chief executive,
Bill Voss.
Regional competition for qualified personnel was partly to blame and action was
needed to monitor the problem before it became serious, he said. “This ebb and flow,
where pilots are being poached [by other airlines], is something we worry about. It can’t
continue for ever and we need to find long-term answers.”
The problem could be eased by the new multi-crew pilot licensing (MPL) system
being brought in by the International Civil Aviation Organisation (ICAO), through which
trainees arrive back at their airlines after ab initio training equipped to fly a modern jet
without the airline needing to supply type rating, he said.
the region will come under the spotlight
this year.
• Safety Management Systems, again
recommended by ICAO, which can be used
by regulators, airlines, air navigation service
providers, airports and ground service providers
and in which roles, responsibilities and
accountability are clearly spelled out.
• The Global Aviation Safety Roadmap
(GASR), being developed by the industry
and endorsed by ICAO, which looks for
regional responses and implementation of
its components.
The AAPA plans to work within GASR
this year to expand its own safety outreach
programme which will be open to all Asia-
Pacific carriers, not just AAPA members,
and aims to bring their safety performance
within the worldwide target of 0.65 accidents
per million departures. The idea is that the
rest of the region should come closer to the
standard achieved by the AAPA itself.
“AAPA safety levels are comparable to
our major airline counterparts in Europe
and North America, with an average of
one accident for every 2.6 million flights.
The Asia-Pacific has a high level of safety,
but it still has some work to do if its safety
performance is to achieve those levels,” said
Eran-Tasker.
There were times when the region as a
whole had little to boast about. “It cannot be
ignored that the Asia-Pacific went through
a period when its safety performance was
questionable,” he said. “The airlines in
question took on this challenge and are now
among the world’s best.”

IOSA gains momentum
More than 100 members and 30 non-members have passed the audit
Last year was the safest on record
for the world’s major airlines,
thanks in part to a comprehensive
safety programme begun
in 2000 by the International
Air Transport Association (IATA) with a
commitment to the implementation of one
major component, IOSA, that led six airlines,
including “a couple” of domestically-focused
carriers from the Asia-Pacific, to lose their
membership.
IOSA or the IATA Operational Safety
Audit programme is part of a six-point safety
initiative, which also covers data management,
cargo safety, flight operations, safety
management systems and infrastructure.
Initially put in place as a requirement
for those wanting to join the world’s top
airline organisation, IOSA now stipulates all
members must be subject to an operational
assessment and have completed all necessary
remedial action by the end of 2008.
They also must have hired one of seven
firms approved for the work by December,
2006. And that’s where the six unnamed
carriers fell down.
“This is a very intense programme. It’s
a huge undertaking,” Günther Matschnigg,
IATA senior vice-president for safety, operations
and infrastructure, told Orient Aviation.
“We are sending a very clear message that all
airlines need to go through IOSA.”
IATA decided early it would not conduct
the audits itself. Instead, it developed
the standards required and has a quality
assurance team checking the work of the
accredited auditors. IATA’s work, in turn, is
checked by the authorities.
But not all IATA’s 250 members, who
operate 94% of all international traffic,
were up to the challenge. “Unfortunately six
airlines didn’t want to [sign up] and they will
now lose their membership,” he said.
“They are small airlines. They came back
and said ‘we concentrate more on domestic
flights, so it doesn’t make a lot of sense for
us.’
“It’s their choice. You can have a Gold
Card with American Express or not. It’s up
to them,” said Matschnigg who singled out
Australia’s Civil Aviation Safety Authority
for its help and support from the launch of
IOSA.
More than 100 members and 30 nonmembers
have passed the audit.
IATA believes IOSA will help it hit its
target of a further 25% reduction in the
global accident rate by 2008, although
director general, Giovanni Bisignani, has
said he accepts other members may have
‘Unfortunately six airlines
didn’t want to [sign up] and
they will now lose their
membership’
Günther Matschnigg
Senior Vice-President for Safety
Operations and Infrastructure
IATA
to quit if they don’t make the grade by the
stipulated date.
IATA members lost 0.41 hulls per million
flights last year – the overall industry figure
is 0.65 – and there has been a steady decline
in accident numbers since 2000.
But work in reducing the risks goes on,
driven in part by a dissection of data linked
to safety issues. “We now have a database
on accidents and also incidents,” said
Matschnigg.
“We can nail things down, spot trends
and see how parts of the world, aircraft and
even airports are performing in comparison
to others. We don’t only collect data, we also
develop trends and then we share these trends
with member airlines.”
A study of statistics, for instance, has
shown cargo aircraft are involved in nearly
a quarter of all accidents. “That’s an unproportional
high, compared to the number of
planes, movements and flying hours,” said
Matschnigg.
A cargo safety team is now at work looking
at prevention strategies and developing
a stronger industry voice on cargo safety
issues.
Half of all major accidents worldwide last
year, in fact, occurred during the approach
and landing phase of flight, with loss of
control topping the causes of fatal crashes
involving commercial jets and controlled
flight into terrain (CFIT) heading the
commercial turboprop list, according to
Flight Safety Foundation (FSF) figures.
And while CFIT, once an all too common
factor in the statistics chart especially in the
Asia-Pacific, is continuing to decline in the
five-year moving average for commercial
jets, there are signs that it may be returning
to prominence when taken overall.
“CFIT is coming back, unfortunately,
and we need to reduce it,” said Matschnigg.
“Good progress has been made, but there’s
a return of numbers.
“There were more last year than the year
before. It’s too early to say whether this is a
trend. But it’s definitely an area to look into
again.”
CFIT reductions are due in part to
increased application of high-tech gadgets
such as the terrain awareness and warning
system (TAWS).
The use of the CFIT toolkit jointly developed
by IATA and the FSF has also helped,
although after years of success, demand for
it has dropped. “It probably needs a new look
and something fresh needs to be rolled out,”
Matschnigg said.
T he FSF, meanwhile, continues
giving CFIT and approach and landing
workshops.
APRIL 2007 ORIENT AVIATION 35

SPECIAL REPORT
Safety
Righting the wrong turns
How best to reduce the risk of runway incursions
It must be every pilot’s nightmare,
an attempted take-off from a wrong
runway and in two high-profile
cases the mistake proved fatal.
Last year 47 passengers died when
a Comair Bombardier CRJ-100 tried to get
airborne from a 1,000-metre strip used
solely by small, general aviation aircraft at
Lexington in Kentucky. It had been cleared
for take-off from one double the length.
Six years earlier, a Singapore Airlines
B747-400 hit construction equipment as its
wheels were leaving the ground after turning
on to a partially-closed runway at Chiang
Kai Shek International Airport in Taiwan.
Eighty-three passengers and crew died.
While it is too early to draw firm conclusions
from the Comair crash – it is still
being investigated by the Federal Aviation
Administration (FAA) – the Taiwan tragedy
has provided safety experts with pointers to
the way forward.
“There have been lots of lessons learned
from that one,” said David Gamper, director,
administrator, safety and technical, at
Airports Council International. “It’s far
too simplistic just to blame the pilot. That’s
what happened originally, but practically
everybody was at fault.”
There are a host of technological answers
to problems such as this and also for runway
incursions and other airside snafus that top
Gamper’s list of current concerns. But they
come at a price that many of the region’s
airports can’t afford.
Risks can be reduced by innovations such
as a multilateration sensor system that tracks
aircraft and vehicles on the tarmac, surface
movement radar, switchable lighting for stop
bars and taxiways to show aircraft the route
and a detection system that warns a controller
when an aircraft crosses over a lit stop bar.
But little of this is straightforward to
acquire. A fully up-to-date lighting system,
for instance, requires digging up the concrete
to lay complex wiring and then, after installation,
the training of control tower personnel
so they can make best use of it.
“It’s all good stuff, but it costs a lot of
‘It is bound to be a resource
problem. We are talking about
expensive improvements that
maybe you can’t put into a
small airport’
David Gamper
Director, Safety and Technical
Airports Council International
money,” said Gamper. “It is bound to be
a resource problem. We are talking about
expensive improvements that maybe you
can’t put into a small airport. It’s an issue in
Europe and the U.S. too; it’s not just confined
to the Asia-Pacific.”
In the final analysis, better procedures
can help all round and also lessen the risk
of taking off on the wrong runway. Gamper
has practical advice for those who don’t have
the money needed to buy the most up-to-date
systems.
“The best thing they can do is concentrate
on procedural improvements; phraseology,
air traffic control (ATC) language skills
and following International Civil Aviation
Organisation (ICAO) phraseology and
procedure all the time,” he said.
“Best of all is a system of giving take-off
clearances as late as possible so there is
no chance of mistaking a runway. In some
countries it is the practice to give an early
clearance, or a provisional clearance. That is
not as safe as delaying until the aircraft is just
before the runway. These things don’t cost
money, just the cost of the training.”
Gamper also advises airports to identify
hot spots. “You should document if there are
any problem areas where you seem to have
a number of incursions or other events, like
mistaken runways. Those should be very rare
events,” he said.
It’s a question of pulling together, it
seems. “Runway safety teams, which are
multi-disciplinary: the airlines, the air
traffic control authority, plus those on the
ribbon area, especially the drivers, they
should get together and discuss the problems.
Sometimes it needs a change in procedure,”
said Gamper.
A concentration on the problem of incursions
has brought results. “These are high
energy incidents when at least one aircraft
is travelling fast. We have put a lot of effort,
along with the rest of the industry, into
producing new guidelines,” he said
Eu rocont rol , t he FA A a nd t he
International Civil Aviation Organisation
36 ORIENT AVIATION APRIL 2007

(ICAO) have added to the advisories.
“Incursions are being looked at much better
than they used to be. It’s an ongoing path, but
one which airports are well prepared for,”
said Gamper.
He highlighted two areas of concern for
Asia-Pacific airports: adverse weather and
surface conditions. Typhoon conditions
and poor visibility, sometimes brought on
by forest fires, are factors in the former and
heavy rain also affects the latter.
“Pilots generally feel, with the procedures
they have, they can cope pretty well,” he said.
“A big problem is that they don’t always
have accurate weather information for their
destination airport – and that can change at
the last minute,” he said.
When it comes to surface conditions,
rubber left on runways is a big worry. “We
have spent a lot of time in an industry taskforce
looking at runway friction issues,” said
Gamper. “You have to have rubber removal
[equipment] and regular maintenance along
the whole runway, not just the bit that is most
used, in case you have a rejected take-off that
requires braking action at the end.
“The airport operator is responsible for
that, but you also need pilot reports on the
condition of the runway, whether it is worn or
grooved and that it is not breaking up.”
The Flight Safety Foundation (FSF),
meanwhile, is also looking at ways to help.
“We are starting to take a serious look at
runway excursions and runway confusion,”
said president and chief executive Bill Voss.
An FSF seminar in Amsterdam in February
brought together representatives of industry
sectors to compare experiences and explore
solutions.
Spotted ... a pen on the runway from 2kms
Au st r a l ia n a i r p or t s a r e
among facilities worldwide
considering the installation
of new detection equipment
that can pinpoint runway
debris with such accuracy that during a test
in Vancouver it found a pen on the tarmac
from two kilometres away.
Currently, debris at airports worldwide is
located by employee teams sent out for the
purpose. The Tarsier system, named after
the google-eyed primate, adds technological
accuracy to their efforts, lessening the risk
of aircraft hitting a foreign object during
landing and take-off.
It’s not a frequent problem, but debris
damage and resulting delays cost the industry
US$4 billion a year worldwide, according to
estimates by Tarsier’s developers, the British
QinetiQ company.
And in extreme cases it can have deadly
consequences, such as the July 2000 Air
France Concorde crash partially caused,
the French government said, by the aircraft
hitting a strip of metal while taking off from
Charles de Gaulle Airport in Paris, causing
a tyre to burst.
“You do inspections normally every six
hours or so, during a break in the traffic, or
you close the runway for a short time,” said
David Gamper, director, administrator,
safety and technical, at Airports Council
International.
“An airport is very reliant on pilot reports
in between. They keep their eyes out, of
course, but if you don’t see it, something
might happen.”
Last year, Vancouver International
Airport became the first to install the
‘Tarsier seems to be a
very good solution, but
it needs to be calibrated
carefully’
David Gamper
Tarsier in action at Vancouver airport: Sydney is looking at the system
system after two incidents in which pieces
of an engine cowl and a component from a
turboprop’s tail were dumped on a runway.
The purchase is part of a major upgrade
for the 2010 Winter Olympics being held
in British Columbia. Dubai International
Airport announced last year that it would
also buy Tarsier.
The technology works by scanning the
runway very slowly and continually through
all weathers, using high-residue radar, which
can tell if an item is made of metal, plastic,
glass, wood or animal remains.
A global positioning system pinpoints
where it is, so airport staff can act quickly.
“Tarsier seems to be a very good solution,
but it needs to be calibrated carefully,” said
Gamper.
Sydney International Airport is another
candidate for Tarsier after conducting trials
in 2005, said a QinetiQ spokesman.
Other Australian airports are considering
its introduction and facilities in the Asia-
Pacific have looked into its implementation,
he said.
Extended trials are now underway at
London Heathrow and at Providence in
Rhode Island. The latter will allow the
Federal Aviation Administration to decide
whether to endorse the equipment.
APRIL 2007 ORIENT AVIATION 37

SPECIAL REPORT
Safety
China launches new safety initiative
A
programme that will lead to a safety measurement system being rolled out
across China with the help of the International Air Transport Association
(IATA) and Transport Canada starts in April. The two organisations were
contracted by the Civil Aviation Administration of China (CAAC) to supply
personnel and materials.
The initiative is the result of an agreement signed by IATA director general, Giovanni
Bisignani, and CAAC director general, Yang Yuanyuan, last August, that signalled cooperation
in a number of areas vital to China’s fast-expanding aviation industry, including the
management of safety data.
“We are trying to help them establish best practices and a safety measurement system
that we have developed into airlines in China,” said Günther Matschnigg, IATA senior
vice-president for safety, operations and infrastructure.
Meanwhile, China’s new Civil Aviation Safety Institute is nearing the end of its first year of
operations during which it began providing specialist education for those involved across the
board in flight safety, as well as commercial airline personnel with the same responsibilities.
The Beijing-based body, which aims to expand to 400 staff and 8,000 students by 2010, is
also working on strengthening the country’s safety management system through departments
specialising in operational standards, airport safety, air traffic safety, aircraft airworthiness
certification, accident investigation and safety information and theory.
Japan Airlines (JAL) is among its collaborators. Maintenance and flight operations
personnel from China’s top four airlines joined officials and air traffic managers who visited
Tokyo to take part in discussions and tour component and maintenance facilities, as well as
JAL’s safety promotion centre. Similar events are planned several times a year.
JAL takes
right line
Japan Airlines (JAL) flight crew will
have their every move monitored on
more than 400 domestic and international
flights starting this month
under the largest Line Operation
Safety Audit (LOSA) ever performed for a
single airline.
The programme, developed by the
University of Texas with the help of the
Federal Aviation Administration, uses
regular monitoring of flight operations to
unearth the factors underpinning human
errors that can affect flight safety and reduce
operational quality.
Personnel from TLC, a company
approved by the LOSA programme, will be
on board to observe flight crew performance
for three months to see where they may be
going wrong. JAL will then implement corrective
action, which will also be monitored.
All crew involved have received LOSA
training.
RA0002ProfitDepart_Orient.indd 1
38 ORIENT AVIATION APRIL 2007
3/2/07 3:20:09 PM

SPECIAL REPORT
Show of strength by organisers
Asian Aerospace International
Expo & Congress is on track
t o b e c ome t he world’s
la rgest dedicated civil
aerospace showcase as Reed
Exhibitions, the leading organiser of trade
and consumer exhibitions, brings together
a number of complementary events under
its umbrella.
In recent months, Reed Exhibitions
announced two strategic acquisitions that
will help it succeed in that aim. First it
acquired the region’s leading air freight
conference and exhibition, Air Freight
Asia. Then it took over all six events in the
aviation division of UKIP Media & Events,
which organises events in the specialised
markets of aircraft interiors, aerospace
design and testing. Both Air Freight Asia
and Aircraft Interiors will be integrated
into Asian Aerospace.
As the result of another agreement, with
Halldale Media Group, Reed Exhibitions
will collaborate in the next staging of the
Asia Pacific Aviation Training Symposium
(APATS), which will be held alongside Asian
Aerospace.
The flagship event has now garnered
support from a variety of public and private
sector individuals and organisations in
Hong Kong and China, including Invest
Hong Kong, the Civil Aviation Department
of Hong Kong, the General Administration
of Civil Aviation of China (CAAC),
Commission of Science Technology and
Industry Media Centre, Airport Authority
Hong Kong, Hong Kong Tourism Board and
the Aerospace Forum Asia.
A mong t he g row i ng nu mb e r of
exhibitors who have signed up for the
show are Airbus, Boeing, Bombardier,
Pilot demand on the agenda
A
dominant theme of the Asia Pacific Aviation Training Symposium (APATS)
will be the demand for trained pilots to maintain the momentum of airline
growth in the region.
As India and China alone account for 32% of the Airbus and Boeing aircraft in
service, and 49% of the aircraft on order from the two major manufacturers, it is not
surprising that personnel shortages beyond the flight deck will also be encountered –
with engineers and cabin crew also much in demand
At a recent APATS forum, Indian low-cost carrier pioneer Air Deccan’s chief pilot,
Captain Rajiv Kothiyal, highlighted statistics which support one of the major challenges
being faced in his country which had around 12 million domestic passengers a year
prior to 2003 and now has around 20 million a year. Just over a decade ago there was
limited pilot demand, which was met indigenously. Currently there is an immediate
shortage of almost 500 pilots.
Inevitably similar challenges are being faced in China, where according to Nigel
Harwood, chief operating officer of specialist aviation training consultancy, Alpha
Aviation Group, there will be a demand for a minimum of 6,000 new pilots by 2010.
English language proficiency for flight deck crew will also be another topic for
discussion during APATS 2007, with the first two days dedicated to pilot related issues,
and the last day focused on maintenance developments.
For sponsorship and exhibiting opportunities contact the following, or your
nearest Reed Exhibitions representative:
USA: Andy Smith – tel: +1 407 942 0071, email: andy@halldale.com
Rest of the World: Jeremy Humphreys – tel: + 44 (0) 1252 532009,
email: Jeremy@halldale.com
Aviation Australia, Aviall, China Aviation
Industry Corporations I and II , CAE,
Frasca, Jet Aviation, Jeppesen, Lufthansa
Technik, Pilatus and United Technologies
Corporation, among many others.
Leading aircraft interiors exhibitors
include Airbus Kid Systeme GmbH,
Aviointeriors SpA, Driessen Aircraft
Interiors, Goodrich, Lantal Textiles,
Premium Aircraft Interiors Group, Recaro,
Thales and Weber Aircraft.
National and industry group pavilions
will include Australia, Austria, Canada,
France, Germany, Italy, Ireland, Netherlands,
Romania, Switzerland, United States and
United Kingdom.
For further information on Asian
Aerospace International Expo & Congress
contact:
Clive Richardson, senior vice president,
Reed Exhibitions Aerospace &
Defence Group, Asia
tel: +852 9660 1513
email: Clive.Richardson@reedexpo.com.hk
Platform
for debate
With Asia as the world’s fastestgrowing
aviation market, the
associated Congress will provide
the perfect platform for topical discussion
during three days of high-level debate on
issues central to the region’s expansion.
The Congress is organised in partnership
with Flight, the world’s longest-established
brand in aviation media. Flight’s portfolio
i ncludes maga zines such as Flight
International and Airline Business, as well as
the Air Transport Intelligence (ATI) services
and the ACAS fleet database.
Congress themes will cover air transport
strategy, air transport operations and
aerospace technology.
For information on delegate registration
and conference logistics please contact:
Gillian Jenner, congress director,
tel: +44 20 8293 9660
email: gillian.jenner@mac.com
Words for this report supplied by Asian
Aerospace International Expo and Congress
39 ORIENT AVIATION April 2007

COMMUTER AVIATION
‘The Haneda capacity
[increase]is a vital business
expansion opportunity for us
and we must be ready to take
maximum advantage of it’
JAL Group spokesman
Japan Airlines’ J-Air: it will soon add Embraers to its fleet
By Charles Anderson
Dramatic increases in slot
availability at Tokyo’s
Haneda airport when its
fourth runway opens in
2009 will allow Japan’s
two main airlines to increase domestic
frequencies and bring more efficient aircraft
into play.
The Haneda factor was the key to JAL’s
announcement in late February that it is to
buy 10 78-seat Embraer 170 E-Jets and place
options on five more, for use by its J-AIR
regional subsidiary.
“The expansion represents a double
chance for JAL,” said a group spokesman.
“We will launch short to medium-haul
international scheduled flights, but we will
also be able to expand our domestic services
by increasing frequencies on regional routes
as well as trunk routes from Haneda.
“We are also downsizing the size of our
aircraft, hence the need for small regional
jets. Now, at Haneda the average aircraft
size per movement is 330 seats. At most
other international airports the average is
about 150, so you can see the effects of the
present limitation.”
All Nippon Airways (ANA), meanwhile,
said it is restructuring its domestic network
around a hub and spoke model. Increases at
Haneda will allow it to progress further with
that plan at a time when domestic operations
are facing increasing competition from the
Shinkansen bullet train and suffering the
effects of a dwindling population outside
the main cities.
Movements at Haneda, the only domestic
New Haneda runway
will be major boost
for commuter jets
airport serving the Japanese capital, are to
increase by nearly 40%, with the limit on
daily round-trip flights increasing from
391 to 557. At present Haneda also handles
some international flights. These will also
increase, although the government has not
said by how many.
The JAL deal marked a major win for
Embraer against Bombardier, which was
hoping to seal a deal for its CRJ700-CRJ900
series. It already has nine 50-seat CRJ200s
in operation with J-AIR, which taken with
IBEX Airlines’ four CRJ100s and CRJ200s,
are the only commuter jets at present flying in
a country where the Canadian manufacturer
has enjoyed considerable sales success with
its Q-series turboprops.
The Embraers may be used in tandem
with the CRJ200s on some routes as JAL
pushes to recover lost domestic market share
that now stands at some 46% against ANA’s
48%, with 6% going to local operators and
new entrants.
“The increased frequencies will give
us better domestic competitiveness, not
only against ANA and [Japan’s] newcomer
airlines, but also against the Shinkansen
bullet train,” said the spokesman.
New airports at Kobe, Kitakyushu and
Chubu have all contributed to domestic
growth, said the JAL spokesman, but, with
62% of all domestic traffic going in an out
of Haneda, it is “the jewel in the crown of
Japan’s domestic air travel market.”
“The Haneda capacity [increase] is a
vital business expansion opportunity for
us and we must be ready to take maximum
advantage of it.”
JAL also owns the Japan Air Commuter
subsidiary which operates Q400s and Saab
340B turboprops on relatively short routes
between regional cities. ANA has 14 Q400s
and Q300s in its domestic fleet and has no
plans to expand this number or to add jets at
present, although that may change with time.
Its Air Next subsidiary operates B737-500s
on domestic routes.
“In future we might consider ordering jets
in the capacity range between our B737s and
Q400s,” said the ANA spokesman.
ANA’s turboprops typically serve its
domestic hub at Osaka Itami, or local point-
40 ORIENT AVIATION APRIL 2007

Mitsubishi may challenge big boys
By Charles Anderson
In future, when Japanese airlines consider adding
regional jets to their fleets, they may well have a homemade
contender to consider. Mitsubishi Heavy Industries
(MHI) is closing in on the configuration of its planned MJ
jets before deciding whether to launch the programme
by this time next year.
The 75-seat MJ-70 and the 96-seat MJ-90 should be certified
and in service by 2012 if the go ahead is given. They will challenge
Bombardier and Embraer’s jet aircraft and also China’s ARJ21
whose maiden flight is now slated for March 2008, according to
the Mainland’s Wen Hui Daily newspaper.
Russian manufacturer, Sukhoi, is also planning to have its
SuperJet100s, with roughly the same seating, on the market by
late 2008.
MHI will target sales worldwide, a spokesman told Orient
Aviation. Fuel efficiency through new engines, along with a
slender, light fuselage, will be important selling points.
“The MRJ will improve fuel efficiency by about 20%
compared with existing, competing airplanes. We are also
considering environmental friendliness and the provision of
enhanced passenger comfort,” said a spokesman.
MHI is conducting a comprehensive engine study with Rolls-
Royce and talks have also been held with General Electric. Thrust
will be in the 13,000 lbs to 14,900 lbs range for an aircraft that will
be capable of flying 3,610 kilometres with a typical payload.
Rockwell Collins is working on the advanced avionics and
cockpit and Saab Aerotech has looked into customer support.
The programme grew out of a research and development
study by MHI, funded by a government agency, into a high
efficiency regional jet featuring top fuel economy, less noise and
the capability of making full use of flight and operational data. It
started as a 30 to 50-seat project before being expanded.
Last year, the Nihon Keizai business daily put funds needed
for the programme at US$1 billion, provided by MHI, trading
houses and financial institutions and the government itself. “The
financial scheme is currently being studied and it is too early to
talk about partners or risk sharing,” said the spokesman. “However
Mitsubishi does not exclude the possibility of foreign companies
participating.”
MHI builds wings for the new Boeing 787 and has done the
same for Bombardier’s Global Express business jet. It has also
manufactured fuselage sectors for the Canadian company’s
Q400 turboprop, although that work is now being switched to the
Shenyang Aircraft Company in China. MHI was a partner, with
five other companies, in the manufacture of the YS-11 turboprop
from 1962 to 1974 and also joined a project exploring potential
for a 100-seat regional jet in the late 90s.
But apart from the development and manufacture of the MU-
300 – currently being produced by Raytheon as the Beach Jet 400
– MHI has not, so far, made an aircraft on its own.
to-point services. The Q300s fly mainly to
the outlying islands. “Haneda is not viewed
as part of the commuter sector, because its
slots are too valuable at the moment,” said the
spokesman. “After the new runway is open
we will use smaller jets such as the B737,
coupled with bigger jets at peak times, as we
do now, but we are not really considering it
for the commuter market using turboprops.
“As Haneda expands there will be some
increase in feeds from local cities, but we
are expecting international growth to be the
mainstay, hence we are emphasizing this.”
Bruce Peddle, managing director, Asia-
Pacific, for Embraer, sees Japan’s increasing
investment in airport infrastructure coming
on line over the next five years, leading to an
easing of the constraints which have cut into
the potential for commuter jets to operate.
“Today, some airports in Japan have slot
limitations based on aircraft size and type of
aircraft - turboprop verses jet,” said Peddle
who takes up a new role as Embraer vicepresident,
marketing and sales, for the U.S.,
Canada and the Caribbean on May 1. “These
restrictions have favoured the deployment
All Nippon Airways: it is sticking to its Q-Series turboprops for now
of turboprops on regional routes while
preserving the scarcer jet slots for larger,
more lucrative routes.
“At the same time, turboprops have also
enjoyed lower navigation and noise charges
to encourage the use of these slots.
“As more slots are allocated for domestic
services, frequency, secondary hubs and
more point-to-point services should develop.
This trend is ideal for regional jets and should
stimulate demand.”
Bombardier sees a future for both
commuter jets and turboprops in Japan, with
jets being utilized on increased domestic
frequencies from airports such as Haneda
and turboprops continuing their popularity
on short sectors in a country where the
average route is just 679 kilometres.
“There continue to be measures to fight
noise at many airports,” said a Bombardier
spokesman. “There are restrictions, for
example, on aircraft with more than three
engines and the environmental awareness
of residents in the areas around airports is
becoming stronger and stronger. Turboprops
incur no noise charges, they can operate
safely from short runways and their lower
fuel burn results in less taxes levied.”
APRIL 2007 ORIENT AVIATION 41

Fleet Census as at Mar 1, 2007
China, India boost numbers
By Dennis Lau
AscendWith more than 370 new
aircraft deliveries
expected in 2007, the
Asia-Pacific looks
set for another record
year despite an increasingly competitive
environment and high fuel prices.
First A380 revenue flight: the headlines
will no doubt be dominated by the world’s
first revenue A380 service in late 2007.
Singapore Airlines is taking delivery of
the first of 19 A380s it has on order after
significant delays. Among the 156 firm
A380 orders, 66 are destined for airlines in
the Asia-Pacific.
China and India to see record
deliveries: the rapid growth of the industry
in China and India is set to continue this
year with 136 and 90 new aircraft deliveries
respectively, which account for over 60% of
the region’s new aircraft deliveries.
Air India begins its long-awaited longhaul
fleet renewal with the arrival of six
B777s during the year while Jet Airways is
planning to launch flights to the U.S. when
the first of 10 B777-300ERs arrive during
the year. Kingfisher Airlines will also
introduce its first widebody aircraft - an
A330-200 - in 2007. The short-haul fleet in
India is expected to grow by 68 new aircraft
including 17 ATR 72 turboprops.
Regional jets: the regional jet fleet in
China is expected to expand over the next
few years with the continued production of
Embraer ERJ-145 jets at the Embraer/Harbin
joint venture facility. Hainan Airlines (HNA)
Group ordered 50 of the type last year and
will also introduce its the first of 50 100-seat
Embraer 190s by the end of 2007. Mandarin
Airlines of Taiwan takes delivery of three
Embraer 190s during the year.
The Embraer 190 will also make its
debut in Australia this year with Virgin
Blue Airlines, which has 11 on order as well
as three Embraer 170s.
An A319 bound for China Eastern
Airlines: the Mainland will receive
136 aircraft this year
A new joint venture carrier formed by
Mesa Air Group of the U.S. and Shenzhen
Airlines is expected to take off this year
using 50-seat regional jets.
Long-haul, low-cost: 2006 saw the
successful debut of Oasis Hong Kong and
Jetstar’s low-cost international operations
and both carriers are aiming to grow market
share in 2007. Oasis plans services to the
U.S. and Canada as well as the acquisition
of more B747-400s. Jetstar is launching six
new routes during the year including its first
to Japan and Malaysia.
AirAsia is set to launch its long-haul
services this year and is currently assessing
destinations in Europe and China. The
airline will use the AirAsia X brand for these
flights which will be operated by partner Fly
Asian Xpress. A fleet of B777s or A330s is
being evaluated.
AirAsia itself will take delivery of 20
more A320s in 2007 and its Malaysianbased
operation will have an all-A320 fleet
by July when the aircraft type is introduced
to its Thai and Indonesian subsidiaries. The
airline also has plans to begin operations in
Sri Lanka and Bangladesh.
Singapore-based Tiger Airways is planning
to start domestic services in Australia.
It already serves Darwin and will begin
flights to Perth in March. A joint venture
with South East Asian Airlines (SEAir) of
the Philippines is also being set up and will
fly domestic routes from Clark Airfield near
Manila.
ANA starts BBJ flights: All Nippon
Airways (ANA) becomes the region’s
first airline to offer an all-business class
service with the arrival of two B737-700ER
(Extended Range) aircraft based on the
popular Boeing Business Jet (BBJ). ANA
will deploy the aircraft on its Nagoya to
Guangzhou and Tokyo Narita to Mumbai
routes. Rival Japan Airlines (JAL) is
introducing new B737-800s on domestic
and regional routes starting in March and
its fleet of MD-87s will be phased out.
Cargo: after the take-over of Dragonair,
Cathay Pacific is expanding its cargo
network with Dragonair’s European cargo
flights now flying under Cathay Pacific.
Both Cathay Pacific and Dragonair will
take delivery of additional B747-400BCFs
(Boeing Converted Freighters) during the
year. The B747-400BCF will also replace
JAL’s ageing Boeing 747 “Classic” freighter
fleet.
Source: Ascend CASE database
42 ORIENT AVIATION APRIL 2007

Aircraft
Fleet Census
Engines
No.
ABOITIZ AIR TRANSPORT (Philippines)
YS 11 Dart-542-10 9
(4 stored)
ADAMAIR (Indonesia)
B737-500 CFM56-3C1 1
B737-400 CFM56-3C1 8
B737-300 CFM56-3B2 6
B737-200 Adv JT8D-15/17 8
(2 stored)
AERO ASIA INTERNATIONAL (Pakistan)
MD-80 JT8D-217A/219 3
DC-9 JT8D-17/A 3
AERO LANKA AIRLINES (Sri Lanka)
BAe (HS) 748 Dart-536-2 1
AERO MONGOLIA (Mongolia)
Fokker 100 Tay-650-15 2
Fokker 50 PW125B 2
AIR ASIA (Malaysia)
B737-300 CFMI-56-3B/3C 15
A320 CFMI-56-5B6/P 17
On order: 136 A320s
Options: 50 A320s
AIR BAGAN (Myanmar)
ATR 72-210 PW127 2
ATR 42-300 PW121 3
A310-220 JT9D-7R4E1 2
Fokker 100 Tay-650-15 1
AIRBLUE (Pakistan)
A321-230 V2533-A5 3
A320-230 V2500-A1/2527-A5 4
On order: 5 A320s
AIR CALEDONIE (New Caledonia)
ATR 72-500 PW127F 1
ATR 42-500 PW127E 1
ATR 42-300 PW 112 1
Fair/Dorn 228-212 TPE331-SA 2520 1
On order: 1 ATR 72-500
A340-310 CFM56-5C4 6
A330-240 Trent 772 8
A320-210 CFM56-5B4/P 5
A320-230 V2527-A5 1
A319-130 V2522-A5 10
A319-110 CFM56-5B4/P 19
On order: 4 A319-110s; 2 A319-130s; 24
A321-210s; 12 A330-240s;
15 B787-8s; 27 B737-800s
AIR CHINA CARGO
B747-400F PW4056 3
B747-400SF PW4056 2
B747-200F JT9D-7R4G2 1
B747-200SF JT9D-7R4G2 3
On order: 3 Tupolev-204/120Fs
AIR DECCAN (India)
A320-230 V2527-A5 19
ATR 72-500 PW127F 6
(1 stored)
ATR 42-500 PW127E 9
(1 stored)
ATR 42-300 PW121 4
On order: 58 A320-230s; 23 ATR-72-500s
AIR DO (Japan)
B767-300ER CF6-80C2B4F 2
B767-300 CF6-ATC2B2 1
B737-400 CFM56-3C1 2
AIR DREAM
B737-200 Adv JT8D-9A 1
AIR FIJI
Emb Bandeirantes PT6A-34 3
Y-12 Mk-II PT6A-27 5
On order: 1 Y-7
AIR FREIGHT NEW ZEALAND
Convair 580 501-D13D 3
501-D229 2
AIR GUIZHOU (CHINA)
B737-800 CFM56-7B27 4
B737-700 CFM56-7B24 3
AIR HONG KONG
A300-600RF CF6-80C2A5 8
AIR INDIA
B747-400 PW4056 8
B747-400 Combi PW 4056 1
B747-300 Combi CF6-80C2B1 2
B777-200ER PW4090 3
B777-200 PW4077 1
B767-300ER CF6-80C2B6F 2
B757-200 PW2040 1
A310-320 PW4152 9
A310-300 CF6-80C2A2 10
(2 stored)
On order: 27 B787-800s; 15 B777-300ERs; 8
B777-200LRs
AIR INDIA EXPRESS
B737-800 CFM56-7B26 13
On order: 12 B737-800s
AIR JAPAN (ANA subsidiary)
B767-300ER CF6-80C2B6 3
AIR KIRIBATI
CASA 212-200 TPE 331-10R-511C 2
Y-12 PT6A-27 1
AIRLANKA CARGO (Sri Lanka)
Antonov An-12 A1-20-M 1
AIRLINES OF PNG
Bomb. DHC 8-100 PW120A 5
(2 stored)
Bomb. DHC 6-200 PT 6A-27 1
Bomb. DHC 6-300 PT6A-27 5
AIRLINK (PNG)
ATR 300 PW121 1
Emb.Bandierante PT6A-34 7
AIR MACAU
A320-230 V2527-A5 1
A321-130 V2524-A5 7
A319-130 V2524-A5 5
A300B4-200F CF6-50C2 2
(1 stored)
B727-200F Adv JT8D-15 1
AIRCALIN (Air Caledonie International, New Caledonia)
A330-200 CF6-80E1A4 2
A320-230 V2527-A5 1
Bomb.DHC6-300 PT6A-27 1
AIR CENTRAL (Japan)
DHC8-400 PW150A 1
Fokker 50 PW125B 2
AIR CHINA
B747-400C PW4056 8
B747-400P PW4056 4
B777-200 PW4077 10
B767-300 PW4056 4
B767-300ER PW4056 5
B767-200ER PW4052 5
B757-200 RB211-535E4 13
B737-800 CFM56-7B26 30
B737-700 CFM56-7B24/22 20
B737-600 CFM56-7B22 6
B737-300 CFM56-3B1/C1 8
APRIL 2007 ORIENT AVIATION 43

Fleet Census
Aircraft
Engines
No.
AIR MANDALAY (Myanmar)
ATR 72-210 PW127 2
ATR 42-300 PW121 1
AIR MARSHALL ISLANDS
Fair/Dorn 228/200 TPE 331-5A-252D 2
Bomb.DHC.8-100 PW120A 1
AIR MOOREA
Bomb. DHC-6-300 PT6A-27 5
AIRMARK INDONESIAN AVIATION
Antonov An-32 A1-20-D-5 1
Fokker 50 PW100-125B 1
Indo Aerospace 212 TPE331-10-501C 1
AIR NATIONAL CORPORATE (Australia)
BAeJetstream31/S31 TPE 331-12UAR-701 4
AIR NELSON (Air New Zealand subsidiary)
Saab 340A GE CT7-5A2 9
(1 stored)
Bomb. DHC 8-300 PW100-123 13
On order: 7 Bomb. DHC 8-300s
AIR NEW ZEALAND
B747-400 RB211-524G3 3
B747-400 CF6-80C2B1F 5
B767-300ER CF6-80C2B6F 6
B777-200ER CF6-80C2B6F 8
B737-300 CFM56-3C1 14
A320-230s V2527-A5 12
On order: 4 B787-8s
Options: 20 A320-230s; 4 Bomb. DHC 8-
300s; 13 Bomb. DHC 8-400s
AIR NEXT (Japan)
B737-500 CFM56-3C1 4
AIR NIPPON NETWORK
Bomb. DHC-8-Q300 PW123B 5
Bomb. DHC -8-Q400 PW150A 12
On order: 1 Bomb. DHC-8-Q400s
AIR NIPPON
B737-700 CFM56-7B22 8
B737-500 CFM56-3C1 21
A320-210 CFM56-5A1 4
AIR NIUGINI (Papua New Guinea)
B767-300ER CF6-80C2B6 1
A330-320 PW4168 1
Fokker 28 Spey 555-15P 4
Fokker 100 Tay 650-15 3
(2 stored)
Bomb. DHC-8-200 PW123 4
Bomb. DHC-8-300 PW123B 1
AIR NORTH (Australia)
Emb Bandierante PT6A-3 2
Emb 120-ERP W100-118A 5
Fair/Metro 23 TPE 331-12UHR-701G 5
AIR PACIFIC (Fiji)
B747-400 PW4056 2
B767-300ER CF6-80C2B6F 1
B737-800 CFM56-7B24 2
B737-700 CFM56-7B24 1
On order: 8 B787-9s
AIR PHILIPPINES
B737-200 Adv JT8D 8
AIR POST (New Zealand)
F-27 Dart-532-7 3
Fair/Metro 23 TPE 331-11U-612G 2
Fair/Metro III TPE 331-11U-612G 3
AIR RAROTONGA (Cook Islands)
Saab 340 GE CT7-5A2 1
Emb Bandierantes PT6A-34 3
(1 stored)
AIR SAHARA (India)
B767-300ER PW4060 1
(stored)
B737-800 CFM56-7B226 7
B737-700 CFM56-7B20/22/24 7
B737-400 CFM56-3C-1 3
B737-300 CFM56 2
Bomb. CRJ-200ER CF34-3B1 4
Bomb. CRJ-200LR CF34-3B1 3
On order: 10 B737-800s
AIR TAHITI (French Polynesia)
ATR 72-500 PW127F 9
On order: 3 ATR-72-500s
AIR TAHITI NUI (French Polynesia)
A340-310 CFM56-5C4 5
AIR VANUATU
B737-300 CFM56-3C1 1
ATR 42-300 PW120 1
Bomb. DHC-6-300 PT6A-27 2
On order: 1 B737-800
ALL NIPPON AIRWAYS
B747-400 CF6-80C2B1F 23
B777-200ER PW4090 8
B777-200 PW4074 16
B777-300ER PW4090 7
B777-300 PW4090 7
B767-300ER CF6-80C2B2 18
B767-300 CF6-80C2B2 33
B767-300ERF CF6-80C2B6F 4
B737-700ER CFM56-7B24 1
B737-700 CFM56-7B22 1
A321-130 V2530-A5 3
A320-210 CFM56-5A1 25
On order: 34 B737-700s; 1 B737-700Ers; 3
B767-300ERs; 1 B767-300F; 3 B777-300ERs;
30 B787-3s; 20 B787-8s; 4 A320-210s;
ALLIANCE AIR (India)
B737-200 Adv JT8D-17A 11
ATR 42-300 PW121 4
ALLIANCE AIRLINES (Australia)
Fokker 100 Tay-650-15 5
(1 stored)
Fokker 50 PW125B 1
ANGKOR AIRWAYS (Cambodia)
B757-200 PW2037 1
MD80 JT8D-219 1
ARIANA AFGHAN AIRLINES
A310-320 JT9D-7R4E1 1
A300B4-200 CF6-50C2 3
B757-200 PW2037 1
B727-200 Adv JT8D-9A/15 3
Antonov An-24 A1-24-A 1
On order: 4 B737-700s
ASIA AVIA AIRLINES (Indonesia)
Fokker 27-600 Dart-532-7R 2
ASIA-PACIFIC AIRLINES (Papua New
Guinea)
B727-200F JT8D-17 5
Bomb. DHC-8-100 PW100 2
ASIA-PACIFIC AIRLINES (Guam)
B727-200F JT8D-17 4
ASIANA AIRLINES
B747-400 CF6-80C2B1F 2
B747-400 Combi CF6-80C2B1F 6
B747-400F CF6-80C2B1F 5
B777-200/ER PW4090 7
B767-300/ER CF6-80C2B2F 7
44 ORIENT AVIATION APRIL 2007

Aircraft
Engines
No.
B767-300ERF CF6-80C2B2F 1
B737-500 CFM56-3C1 3
B737-400 CFM56-3C1 7
A321-130-/230 V2533-A5 11
A330-320s PW4168A 5
A320-230 V2527-A5 5
On order: 3 B777-200ERs; 1 A330-320
Options: 5 A330-220s; 5 A330-320s
ASIAN SPIRIT (Philippines)
BAe (HS) 146 ALF502-R 3
BAe (HS) ATP PW126 1
YS-11 Dart 542-10 3
(1 stored)
LET 410 3M-601-E 3
Indo Aerospace CN235 CT7-7 A 2
Bomb. DHC-7s 6
(1 stored)
AUSTRALIAN AIR EXPRESS
B727-200F JT8D-15 4
B737-300SF CFM56-3C1 2
BAe (HS) 146-100QT ALF502-R-5 1
BAe (HS) 146-300QT ALF502-R-5 2
Fair/MetroExpediter TPE 331-11U-6119 3
BALI AIR
BAe (HS) 748 Dart-534-2 4
(all planes stored)
BANGKOK AIRWAYS (Thailand)
A320-230 V2527-A5 3
B717-200 BR700-715C/A 4
ATR 72-500 PW127F 8
On order: 7 A319-100s, 1 ATR 72-500
Options: 3 ATR 72500s
BATAVIA AIR (Indonesia)
B737-400 CFM56-3C1 4
B737-300 CFM56-3B1 10
(1 stored)
B737-200 Adv JT8D-15/A or 17/A 16
(6 stored)
BERJAYA AIR (Malaysia)
Bomb. DHC-7 PT6A-50 4
BEST AIR (Bangladesh)
BAe (HS) 748 Dart-534-2 1
BIMAN BANGLADESH AIRLINES
A310-320 PW4156A 4
DC-10 CF6-50C2 5
Fokker 28 Spey 555-15P 4
BISMILLAN AIRLINES (Bangladesh)
Antonov An-12 A1-20-M 2
B737-200 JT8D-9A 1
LT11-Tristar-100/50 RB211-22B 1
(1 stored)
BLUE DART AVIATION (India)
B757-200SF RB211-535C 2
B737-200F Adv JT8D-9A/17/17A 5
BOURAQ INDONESIA AIRLINES
B737-200 Adv JT8D-15 6
(all stored)
BUDDHA AIR (Nepal)
Raytheon 1900D PT6A-67D 4
Raytheon 1900C1 PT6A-65B 2
CATHAY PACIFIC AIRWAYS
B747-400 RB211-524H2-2T/ 21
PW4056
B747-400F RB211-524GT 6
B747-400BCF RB211-524H2-T / 4
PW4056
B747-200SF CF6-50E2/ 5
RB211-524D
B747-200F RB211-524D4 2
B777-200 Trent 877 5
B777-300 Trent 892 12
A340-640 Trent 556 3
A340-300 CFM56-5C4 15
A330-300 Trent 700 26
Learjet 45 TFE 731-20 1
On order: 18 B777-300ERs; 16 B747-
400ERFs; 5 A330-340s;
Options: 18 B777-300ERs
CEBU PAIFIC AIR (Philippines)
A320-210 CFM56-5B5/P 4
A319-110 CFM56-5B5/P 10
DC-9-41 JT8D-9A/7B 11
(all stored)
On order: 20 A320s
Options: 5 A320s
CHANGAN AIRLINES (China)
B737-800 CFM56-7B26 4
B737-700 CFM56-7B22 1
A319-110 CFM56-5B7/P/2P 4
Y-7 PW127C/ WJ5-A-1 6
(4 stored)
CHINA AIRLINES (Taiwan)
B747-400 PW4056 11
CF6-80C2B1F 4
B747-400F CF6-80C2B1F/5F 19
B737-800 CFM56-7B26 12
A340-310 CFM56-5C4 6
A330-300 CF6-80E1A4 13
On order: 1 B747-400F; 4 A330-300s
Options: 4 A330-300s
CHINA CARGO AIRLINES
B747-400ERF CF6ATC-2B5F 1
MD-11F PW4460 6
On order: 1 B747-400ERF
CHINA EASTERN AIRLINES (Shanghai)
B767-300ER RB211-524H2 3
B737-800 CFM56-7B26 7
B737-700 CFM56-7B22 29
B737-300 CFM56-3C1 3
B737-200 Adv JT8D-17A 1
(stored)
A340-640 Trent 556 5
A340-310 CFM56-5C4 5
A330-340 Trent 772B-60 7
A330-240 Trent 772B-60 3
A321-200 CFM56-5B3/P 6
A320-210 CFM56-5B4 63
A319-110 CFM56-5B6/P 13
A300-600R CF6-80C2A5 9
(1 stored)
MD90 V2500-2525-D5 9
CRJ-200LR CF34-3B1 5
Emb HarbinERJ-145 AE3007-A1 7
BAe (HS) 146-300 ALF507-1H 7
(stored)
BAe (HS) 146-100 ALF507-1H 2
(stored)
Y-7-100 WJ5-A-1 11
(stored)
Orders: 10 A330-340s; 2 A330-240s; 24
A321-210s; 9 A320-210s; 12 A319-110s;
15 B787-800s; 6 B737-800s; 14 B737-700s; 3
Emb Harbin ERJ 145s
CHINA FLYING DRAGON
Y-12 PT6A-27 8
Orders: 2 Y-12
CHINA POSTAL SERVICES
B737-300QC CFM56-3B2 2
B737-300SF CFM56-3B2 5
Y-8 WJ6-A 4
APRIL 2007 ORIENT AVIATION 45

Fleet Census
Aircraft
Engines
No.
CHINA SOUTHERN AIRLINES
B747-400F PW4062 2
B777-200ER GE90-90B 6
B777-200 GE90-90B 4
B757-200 RB211-535E4 14
B737-800 CFM56-7B26 20
B737-700 CFM56-7B24 18
B737-300 CFM56-3C1 17
A330-240 Trent-772B-60 5
A320-230 V2527/E-A5 46
A320-210 CFM56-5B4/P 20
A319-130 V2524-A5 22
A319-110 CFM56-5B7/P 6
A300-620R PW4158 6
MD80 PWJT8D-217A 12
(8 stored)
MD90s V2500-2525-D5 13
ATR-72 PW100-127F 5
Emb Harbin ERJ-145 AE3007-A1 6
Orders: 17 B737-800s; 9 B737-700; 4 B737-
700s; 10 B787-8s; 5 A380-840s; 8 A330-
340s; 1 A330-240; 30 A321-230s; 15 A320-
230s; 5 A320-200s; 21 A319-130s
CHINA UNITED AIRLINES (Beijing)
B737-800 CFM56-7B26 1
B737-700 CFM56-7B24 2
CHINA XINHUA AIRLINES (Beijing)
B737-800 CFM56-7B26 5
B737-400 CFM56-3C1 3
B737-300 CFM56-3B1/C1 6
CONTINENTAL MICRONESIA
B737-800 CFM56-7B26 9
DAILY AIR (Taiwan)
Fair/Dornier 228 TPE331-5A-252D 4
DEER JET AIRLINES (China)
B737-300 CFM56-3C1 5
DERAYA AIR TAXI (Indonesia)
Indo Aerospace 212 TPE331-5-251C 1
(2 stored)
Shorts 330-200 PWPT6A-45R 2
Shorts 360 -300 PT6A-67R 2
DIRGANTARA AIR SERVICE (Indonesia)
Indo Aerospace 212 TPE331-10-251 8
ATR 42-300 PW120 1
DRAGONAIR (Hong Kong)
B747-400F CF6-80C2B1F 1
B747-400BCF PW4056 2
B747-300SF JT9D-7R4G2 3
B747-200F JT9D-7R4G2 1
A330-340 Trent 772B-60 16
A321-230 V2533-A5 6
A320-230 V2527-A5 9
DRUK-AIR (Bhutan)
A319-110 CFM56-5B7/P 2
BAe (HS) 146-100 ALF502-R-5 2
EAGLE AIRWAYS (New Zealand)
Raytheon 1900D PT6A-67D 16
BAeJetstream-31/S31 TPE331-12UAR-701H 1
EAST PACIFIC AIRLINES (China)
B737-300SF CFM56-3C1 2
On order: 1 A319-110; 1 A320-210
EAST STAR AIRLINES (China)
A319-110 CFM56-5B6/P 3
Orders: 1 A320-210
EASTERN AUSTRALIA AIRLINES
Bomb. Dash 8-300 PW123E 10
Bomb. Dash 8-200 PW123C & D 3
Bomb. Dash 8-100 PW120/121 9
EVA AIR (Taiwan)
B747-400 CF6-80C2B1F 5
B747-400 Combi CF6-80C281F 10
B747-400F CF6-80C2B1F 3
B777-300ER GE90-115B 5
B767-300ER CF6-80C2B6F 2
A330-200 CF6-80E1A3 11
MD-11F CF6-80C2D1F 10
MD-90 V2525-D5 3
On order: 1 B777-300ER; 7 B777-300ERs; 2
B777-200LRs
Options: 4 B777-200LRs
EVEREST AIR (Nepal)
Fair/Dorn 228-100 TPE331-5-252D 2
(stored)
FAR EASTERN AIR TRANSPORT (Taiwan)
B757-200 PW2037 6
B757-200PF BR211-535E4 1
MD-80 JT8D-217C/219 9
FREEDOM AIR INTERNATIONAL (NZ)
A320-230 V2527-A5 12
FLY ASIAN EXPRESS (Malaysia)
Fokker 50 PW100-125B 7
Bomb.DHC-6-300 PWPT6A-27 5
GARUDA INDONESIA
B747-400 CF6-80C2B1F 3
B737-800 CFM56-7B26 2
B737-500 CFM56-3C1 4
(1 stored)
B737-400 CFM56-3C1 17
(1 stored)
B737-300 CFM56-3C1 12
A330-340 Trent 768-60 6
A330-240 Trent 772B-60 1
DC10 CF6-50C 5
On order: 6 B777-200ERs; 18 B737-700s; 3
A330-340s
GARUDA INDONESIA CITILINK
B737-300 CFM56-3B1/C1 2
GATARI AIR SERVICE (Indonesia)
Fokker 28-4000 Spey-555-15P 2
Fokker 28-3000/C Spey-555-15H 2
GO AIR (India)
A320-230 V2527-A5 4
A320-210 CFM56-5B4/P 2
On order: 10 A320-210
Options: 10 A320-210
GREAT WALL AIRLINES (China)
B747-400F PW4056 2
GT AIR (Indonesia)
Fokker 27--500 Dart-532-7/R 2
(stored)
GUANGXI AIRLINES (China)
B737-800 CFM56-7B27 5
B737-500 CFM56-3C1 2
B737-300 CFM56-3B1 2
HAINAN AIRLINES (China)
B767-300ER PW4056 5
B737-800 CFM56-7B26 19
B737-400 CFM56-3C1 7
B737-300 CFM56-3C1 5
A319-110 CFM56-5B6/P/2P 7
Fair/Dorn 328JETS P&W 300-306B 25
46 ORIENT AVIATION APRIL 2007

Aircraft
Engines
No.
On order: 8 B787-8s; 31 B737-8s; 20 A319-
110s; 2 A330-240s; 50 Emb E-190s; 50 Harb
Emb EJ145s
HEAVYLIFT CARGO AIRLINES (Australia)
B727-100F JT8D-7B 3
Bomb. Shorts SC5 Tyne-Ty12MK515/101W 1
HONG KONG AIRLINES
B737-800 CFM56-7B26/24 5
HONG KONG EXPRESS AIRWAYS
B737-800 CFM56-7B26 1
Emb E-170 CF34-8E5 3
HORNBILL SKYWAYS (Malaysia)
Fair/Dornier 228-200 TPE331-5-252D 2
IBEX AIRLINES (Japan)
Bomb.CRJ 200/100 CF343A1/B1 4
IMTREC AVIATION (Cambodia)
Antonov An-12 A1-20-M 2
Antonov An-26 A1-24-VT 1
Ilyushin Il-76 D-30-KP-2 2
INDIAN (formerly Indian Airlines)
A320-230 V2500-AI 57
A319-110 CFM56-5B6/P 6
A300B4-200 CF6-50C2 3
Fair/Dornier 328 TPE331 2
On order: 62 A320-230s; 4 A320-210s; 20
A321-210s; 18 A319-110s
INDIGO (India)
A320-230 V2500-2527-A5 8
On order: 62 A320-230s; 30 A321-230s
INDONESIA AIR ASIA
B737-300 CFM56-3B1/2/C1 6
INDONESIAN AIR TRANSPORT
Fokker 50 PW125B 2
Fokker 27 Dart.532-7R 1
BAe 111 400 Spey-511-14W 1
BAe 111 475 Spey-512-14DW 1
Raytheon 1900D PTA-67D 2
Gulfstream 1 Dart-529-8X 2
JAGSON AIRLINES (India)
Fair/Dorn 228-201 TPE331-5-252D 3
(I stored)
JAL EXPRESS
B737-400 CFM56-3C1 8
MD-80 JT8D-217C 4
JALWAYS
B747-300 JT9D-7R4G2 2
JAPAN AIR COMMUTER
Bomb. DHC.8.400 PW150A 9
Saab 340B CT7-9B 11
On order: 2 Bomb.DHC.8.400s
JAL INT’L AND JAL DOMESTIC
B747-400 CF6-80C2B1F 40
(1 stored)
B747-400F CF6-80C2B1F 2
B747-400BCF CF6-80C2B1F 2
B747-300 JT9D-7R4G2 8
B747-200F/SF JT9DR4G2/7Q 9
B747-200B JT9D-7R4G2/7Q 4
(1 stored)
B777-300ER GE90-115B 6
B777-300 PW4090 7
B777-200/ER GE90-94B 11
B777-200 PW4077 14
B767-300ER CF6-80C2B7F 15
B767-300 CF6-80C2B2 7
JT9D7R4D 12
B767-200 JT9D-7R4D 3
B737-800 CFM56-7B24 2
A300-600R PW4158 22
MD-90 V2525-D5 16
MD-80 JT8D-217A 22
On order: 30 B787-3/8s; 7 B777-300ERs; 1
B777-200; 3 B767-300ERs; 4 B767-300ERFs;
28 B737-800s
Options: 20 B787-3/8s; 2 B777-300ERs; 10
B737-800s
JAPAN ASIA AIRWAYS (JAL subsidiary)
B747-300 JT9D-7R4G2 2
B767-300 JT9D-7R4D 1
CF6-80C2B7F 2
JAPAN TRANSOCEAN AIR (JAL subsidiary)
B737-400 CFM56-3C1 15
JATAYU AIRLINES (Indonesia)
B737-200 Adv JT8D-15/15A/17 5
B737-200 JT8D7B 1
B727-200 Adv JT8D-9A/15 7
(all stored)
JEJU AIR
Bomb.DHC.8.400 PW100-150A 5
Options: 3 Bomb.DHC.8.400s
JET AIRWAYS (India)
B737-900 CFM56-7B26 2
B737-800 CFM56-7B24/27 27
B737-700 CFM56-7B22/24 13
B737-400 CFM56-3C1 6
A340-310 CFM56-5C4/P 3
A330-240 Trent 772B-60 2
ATR 72-500 PW127F 8
On order: 10 B787-8s; 10 B777-300ERs; 4
B737-800s; 3 B737-700s; 10A330-200s
JETSTAR ASIA (Singapore)
A320-230 V2500-2527-85 5
JET CONNECT (New Zealand)
B737-400 CFM56-3C1 2
B737-300 CFM56-3C1 5
JETCRAFT AVIATION (Australia)
Fair/Metro 23 TPE 331-12U-701G 2
Fair/Metro Expeditor TPE 331-11U-611G 1
Fair/Metro III TPE 331-11U-611G 7
Fair/Metro II TPE 331-10UA-511G 1
(stored)
JETSTAR (Australia)
A320-230 V2500-2527-A5 23
A330-200s CF6-80E1A2 3
B717-200 BR700-715A 5
(all stored)
On order: 10 B787-8s
Options: 40 A320-230s
JUNEYAO AIRLINES (China)
INTERISLAND AIRLINES (Philippines)
Yak-40 A1-25 2
(1 stored)
ISLAND AVIATION SERVICES (Maldives)
Fair/Dorn 228-200 TPE331-5A-252D 5
(1 stored)
Bomb.DHC-8-200 PW123D 2
ISLAND TRANSVOYAGER INC (Philippines)
Fair/Dorn 228-200 TPE331-5A-252D 2
J-AIR (Japan)
Bomb.CRJ 200ER CF34-3B1 9
JADE CARGO INTERNATIONAL (China)
B747-400ERF CF6-80C2B5F 3
On order: 3 B747-400ERFs
APRIL 2007 ORIENT AVIATION 47

Fleet Census
Aircraft
Engines
No.
A319-110 CFM56-5B6/P 2
A320-210 CFM56-5B4/P 1
On order: 6 A320-210s
KAL STAR TRIGANA AIR (Indonesia)
Fokker 28-4000 Spey-555-15P 1
Fokker 27-500 Dart532-7/7R 2
Fokker 27-200 Dart-532-7 2
ATR 72-200 PW124B 1
ATR 42-300 PW120/121 3
ATR 42-300F PW120 1
Bomb.DHC-6-300 PT6A-27 3
KAM AIR (Afghanistan)
B737-800 CFM56-7B26 1
B737-200 Adv JT8D-15 2
B727-200 Adv JT8D-9A/17R 1
(2 stored)
B727-100 JT8D-7B 1
(stored)
Antonov AN-24 A1-24-A 1
(stored)
KARTIKA AIRLINES (Indonesia)
B737-200 Adv JT8D-9A 2
KINGFISHER AIRLINES (India)
A321-200 V2530-A5 4
A320-230 V2527-A5 10
A319-130 V2522-A5 3
A319-CJ V2522-A5 1
ATR 72-500 PW100-127F 2
On order: 31 A320-230s; 3 A321-230s; 5
A330-200s; 10 A340-540; 5 A350-800s; 5
A380-800s; 28 ATR 72-500s
Options: 20 A320-230s; 20 ATR 72-500s
KOREAN AIR
B747-400 PW4056 24
B747-400BCF PW4056 2
B747-400ERF PW4062 8
B747-400F PW4056 9
B747-300SF JT9D-7R4G2 1
B777-300 PW4098 4
B777-200ER PW4090 12
B737-900 CFM56-7B26 16
B737-800 CFM56-7B26 16
A330-320 PW4168 16
A330-220 PW4168A 3
A300-620R PW4158 10
CASA 212-100 TPE331-5-251C 1
On order: 5 A380-860s; 10 B787-8s; 10 B777-
300ERs; 6 B777-200ERs; 5 B777-200LRFs; 6
B737-900ERs; 5 B747-8Fs
Options: 3 A380-860s; 10 B787-8s, 4 B777-
300ERs
LAO AIRLINES
ATR 72-200 PW124B 2
Y-12 PT6A-27 2
Y-7-100 WJ5-A-1 2
MD-90-30 V2828-D5 4
(1 stored)
MD-80 JT8D-217/A/C/219 6
(3 stored)
On order: 60 B737-900ERs
LUCKY AIR (China)
B737-700 CFM56-7B24 3
MACAIR AIRLINES (Australia)
Fair/Metro 23 TPE 331-12UHR-701G 4
(1 stored)
Saab 340B CT7-9B 6
On order: 1 ATR 42-500
MALAYSIA AIRLINES
B747-400 PW4056 17
B747-400F PW4056 2
B747-200SF CF6-50E2 1
RB211-524D4 3
B777-200ER Trent 892 17
B737-400 CFM56-3C1 37
A330-320 PW4168 11
A330-220 PW4168A 3
On order: 6 A380s
MALDIVIAN AIR TAXI (Maldives)
Bomb. DHC-6-300 PT6A-27 15
Bomb. DHC-6-200 PT6A-20 2
Bomb. DHC-6-100 PT6A-20 4
(1 stored)
MANDALA AIRLINES (Indonesia)
B737-400 CFM56-3C1 2
B737-200 Adv JT8D-15/17/17A 6
(all stored)
B727-200 JT8D-15 1
(stored)
A320-210 CFM56-5A3 2
Antonov AN-8 NK-2-M 1
(stored)
MANDARIN AIRLINES (Taiwan)
B737-800 CFM56-7B26 1
A340-310 CFM56-5C4 1
Fokker 50 PW125B 3
(1 stored)
On order: 3 Emb E-190s, 5 EmbE-195s
MERPATI NUSANTARA AIRLINES (Indonesia)
B737-300 CFM56-3B1 1
B737-200 Adv JT8D-15/A/17 11
(1 stored)
Fokker 100 Tay 650-15 2
(1 stored)
Fokker 27-500F Dart 536-7 2
(4 stored)
Fokker 28-4000 Spey 555-15P 6
(3 stored)
Indo. Aero 212-200 TPE 331-10-501C 6
Indo. Aero.CN-235-10 CT7-7A 4
(6 stored)
Bomb. DHC-6-300 PT6A-27 5
(3 stored)
On order: 15 Xian Y7-MA60
MOUNT COOK AIRLINE (NZ, subsidiary of ANZ)
ATR 72-500 PW127F 11
MONGOLIAN AIRLINES
B767-300ER PW4060 1
B737-800 CFM56-7B26 1
A310-300 CF6-80C2A2 1
Antonov An-26 AI-24-VT 1
Antonov An-24-RV AI-24-A 4
(all stored)
MYANMAR AIRWAYS
Fokker 28-1000 Spey 555-15 1
(stored)
Fokker 27-600 Dart 532-7 1
(5 stored)
Fokker 27-400 Dart 532-7 1
Fokker 27-100 Dart 514-7 1
MYANMAR AIRWAYS INTERNATIONAL
MD-80 JD8D-217A/C 1
NATIONAL JET SYSTEMS (Australia)
BAe (HS) 146-300 ALF507-1H 2
BAe (HS) 146-200 ALF 502-R-5 3
BAe (HS) 146-100 ALF 502-R-5 5
BAe RJAvro ALF507-1F 1
LION AIRLINES (Indonesia)
B737-400 CFM56-3C1 7
B737-300 CFM56-3B1 2
48 ORIENT AVIATION APRIL 2007

Aircraft
Engines
No.
NEPAL AIRLINES
B757-200 RB211-535E4 1
B757-200 Combi RB211-535E4 1
Bomb.DH6-300 PT6A-27 7
NETWORK AVIATION AUSTRALIA
EmbE-120ER PW118 6
NEW CENTRAL AIR SERVICE (Japan)
Fair/Dorn 228-200 TPE331-5A-252D 3
NIPPON CARGO AIRLINES
B747-400F CF6-80C2B1F 3
B747-200F/SF CF6-50E2 6
On order: 7 B747-400Fs; 14 B747-8Fs
NOK AIR
B737-400 CFM56-3C1 6
ATR 72-200 PW100-124B 1
OASIS HONG KONG AIRLINES
B747-400 PW4056 2
OKAY AIRWAYS (China)
B737-800 CFM56-7B27 2
B737-500 CFM56-3C1 1
B737-300SF CFM56-3B1 3
ORIENT THAI (Thailand)
B747-300 JT9D-7R4G2 2
B747-300 Combi CF6-50E2 1
B747-200B JT9D-7AW/7J 2
(1 stored)
B747-100 JT9D-7A 2
MD-80 JT8D-217A 4
ORIENTAL AIR BRIDGE (Japan)
Bomb.DHC.8.200 PW100-123C 2
PACIFIC AIRLINES (Vietnam)
B737-400 CFM56-3C1 3
A320-210 CFM56-5A1 1
PACIFIC BLUE (New Zealand)
B737-800 CFM56-7B26 4
PAKISTAN INTERNATIONAL AIRLINES
B747-300 RB211-524C2 6
B747-200 Combi CF6-50E2 2
B747-100 JT9D-7A 1
B777-300ER GE90-115B 2
B777-200LR GE90-110B1 2
B777-200ER GE90-94B 3
B737-300 CFM56-3B2 7
A321-230 V2500-2533-A5 2
A310-300 CF6-80C2A8 9
A310-320 PW4152/4156A 6
ATR 42-500 PW100-127E 4
Bomb.Fokker 27-200 Dart 532-7 8
(all stored)
On order: 1 B777-300ER; 1 B777-200ER; 3
ATR 42-500s
PARAMOUNT AIRWAYS (India)
Emb E-170 CF34-8E5 2
Emb E-175 CF34-8E5 3
On order: 1 Em 170LR
PB AIR (Thailand)
Emb ERJ-145LR AE 3007-A1 2
PEARL AVIATION (Australia)
Fair/Metro 23 TPE 331-12UHR-701G 4
Fair/Dornier 228/200 TPE 331-5-252D 1
Fair/ Dornier 328/100 PW119B 5
PELITA AIR SERVICE (Indonesia)
Fokker 100 Tay 650-15 2
Fokker 28-4000 Spey 555-15P 1
(2 stored)
Bomb.DHC.7 PT6A-50 5
(1 stored)
Indo. Aero. C212-200 TPE331-5-251C 8
BAe Avro RJ85 LF507-1F 1
PHILIPPINE AIRLINES
B747-400 CF6-80C2B1F 4
B747-400 Combi CF6-80C2B1F 1
B737-400 CFM56-3B2 1
B737-300 CFM56-3B1 3
A340-310 CFM56-5C4 4
A330-300 CF6-80E1A2 8
A320-210 CFM56-5B4/P 9
A319-110 CFM56-5B6/P 3
Orders: 3 B747-400s; 11 A320-210s
PMT AIRLINES (Cambodia)
Antonov An-24 A1-24-A 2
MD80 JT8D-219 1
POLYNESIAN AIRLINES (Western Samoa)
Bomb.DHC.8.100 PW100-120A 1
Bomb. DHC-6.300 PT6A-27 1
PRESIDENT AIRLINES (Cambodia)
B737-800 CFM56-7B26 1
Y-7 WJ5-A-1 2
QANTAS AIRWAYS
B747-400 RB211-524G/H-T 21
CF6-80C2B1F 3
B747-400ER CF6-80C2B5F 6
B747-300 RB211-524D4 5
(1 stored)
B767-300ER CF6-80C2B6 22
RB211-524H3/H-T 7
B737-800 CFM56 Ð7B24 33
B737-400 CFM56-3C1 19
A330-300 CF6-80E1-A3 10
A330-200 CF6-80E1-A2 1
On order: 40 B787-8/9s; 5 B737-800s; 8
A3302-200s; 20 A380-840s
Options: 20 B787-8/9s; 37 B737-800s; 4
A380s; 8 Bomb. DHC.8-400s
QUEENSLAND REGIONAL AIRLINES (Australia)
Bomb.DHC.8-100 PW120A 1
REGIONAL AIR (Papua New Guinea)
Bomb.DHC-6-300 PT6A-27 3
REGIONAL EXPRESS, AUSTRALIA (REX)
Saab 340A CT7-5A2 8
Saab 340B CT7-9B 23
REGIONAL PACIFIC AIRLINES (Australia)
Bomb.DHC-6-300 PT6A-27 3
Emb. E-120 PW118 2
RIAU AIRLINES (Indonesia)
Fokker 50 PW125B 5
ROYAL AIRLINES (Pakistan)
Fair/Metro 3 TPE331 1
Antonov An-26 A1-245-VT 1
ROYAL BRUNEI AIRLINES
B767-300ER PW4056 6
A320-230 V2524-A5 2
A319-130 V2524-A5 2
ROYAL KHMER AIRLINES
B737-200 Adv JT8D-15A 1
(1 stored)
RPX AIRLINES (Indonesia)
B737-200C/QC Adv JT8D-15 1
RYUKYU AIR COMMUTER (Japan)
Bomb. DHC-8-100 PW100-121 4
Bomb. DHC-8-300 PW100-123B 1
APRIL 2007 ORIENT AVIATION 49

Fleet Census
Aircraft
Engines
No.
SABAH AIR (Malaysia)
ASTA (GAF) Nomad 250-B17B 1
SABANG MARAUKE RAYA AIR CHARTER (Indonesia)
Indo. Aero. 212 TPE331-5-251C 2
(1 stored)
SHA’ANXI AIRLINES (China)
B737-800 CFM56-7B26 1
B737-700 CFM56-7B24 1
Fair/Dornier 328Jet PW300-306B 4
SHAHEEN AIR (Pakistan)
B737-200 Adv JT8D-9A/15 4
SHANDONG AIRLINES (China)
B737-800 CFM56-7B24/26 8
B737-700 CFM56-7B22 3
B737-300 CFM56-3B1/C1 14
Bomb.CRJ700 CF34-8C1 2
Bomb.CRJ-200LR CF34-3B1 2
Bomb.CRJ-200ER 5
On order: 18 B737-800s; 10 ARJ21s
SHANGHAI AIRLINES (China)
B767-300ER PW4060 3
B767-300 PW4056 3
B757-200 PW2037 10
(1 stored)
B757-200SF PW2037 1
B737-800 CFM56-7B26 16
B737-700 CFM56-7B24 4
Bomb. CRJ200ER CF34-3B1 3
Bomb. CRJ200LR CF34-3B1 2
On order: 9 B787-8s; 17 B737-800s; 3 B737-
700s; 5 A321-200s; 5 ARJ21s
SHANGHAI INTERNATIONAL CARGO AIRLINES
B757-200SF PW2037 2
MD11F CF6-80C2D1F 2
SHANTOU AIRLINES (China)
B737-800 CFM56-7B2F 3
B737-300 CFM56-B4/C1 6
SHENZHEN AIRLINES (China)
B737-900 CFM56-7B26 5
B737-800 CFM56-7B26/27 12
B737-700 CFM56-7B20/22/24 10
B737-300 CFM56-3B1/2/C1 9
A320-210 CFM56-5B4/P 4
A319-110 CFM56-5B6/P 5
On order: 10 B737-800s; 9 A320-210s;
1 A319-110; 15 A320-200s
Options: 15 A320-200s
SICHUAN AIRLINES (China)
A321-230 V2533-A5 4
A321-130 V2530-A5 2
A320-230 V2527-A5 13
A319-130 V2527-A5 6
Harb.Emb. ERJ-145 AE3007-A1 5
On order: 5 A319-130s; 6 A320-230s;
4 A321-230s
SILKAIR (Singapore)
A320-230 V2527-A5 8
A319-130 V2524-A5 5
On order: 8 A320-230s; 5 A319-130s
Options: 9 A320-230s
SINGAPORE AIRLINES
B747-400 PW4056 22
B777-200ER Trent 884/892 46
B777-300 Trent 892 19
B777-200 Trent 884 31
A340-540 Trent 553 5
On order: 12 B777-300ERs; 40 B787-9s;
19 A380s; 19 A330-340s
Options: 13 B777-300ERs; 6 A380-800s
SINGAPORE AIRLINES CARGO
B747-400F PW4056 14
SITA AIR (Nepal)
Fair/Dorn 228-200 TPE331-5-252D 3
SKIPPERS AVIATION (Australia)
Bomb.DHC. 8-100 PW120A 2
Bomb.DHC. 8-300 PW120A 2
Emb.E-120ERJ/ER PW118 6
Fair/Metro 23 TPE331-12UHR-701G 6
SKYMARK AIRLINES (Japan)
B767-300ER CF6-80C2B6F/7F 6
B737-800 CFM56-7B26 4
On order: 7 B737-800s
SKYNET ASIA (Japan)
B737-400 CFM56-3C1 8
SKYWEST AIRLINES (Australia)
Fokker 100 Tay-650-15 3
Fokker 50 PW125B 7
SOLOMON AIRLINES
B737-300 CFM56-3B1 1
Bomb.DHC-6-310 PT6A-27/34 4
SOUTH EAST ASIAN AIRLINES (Philippines)
Fair/Dorn 328-100 PW100119B/C 4
Let L-410 UVP-E M-601-E 12
SOUTH PACIFIC EXPRESS (American Samoa)
Bomb.Shorts 360 Adv PT6A-65AR 2
SOUTHWEST AIR (Papua New Guinea)
Bomb.DHC-6-300 PT6A-27 1
Emb. Bandierante PT6A-34 1
SPICE JET (India)
B737-800 CFM56-7B24/26/27 11
On order: 12 B737-800s; 9 B737-900ERs
SPRING AIRLINES (China)
A320-210 CFM56-5B4/P 6
SRILANKAN AIRLINES
A340-310 CFM56-5C2/C3F 5
A330-240 Trent 772-B60 4
A320-230 V2500-A1 5
SRILANKAN CARGO
Antonov AN-12 ZMKBProgressAL-20 2
SRIWIJAYA AIR (Indonesia)
B737-200 Adv JT8D9A/15A/17A 15
STAR FLYER (Japan)
A320-210 CFM56-5B4/P 4
SUNSTATE AIRLINES (Queensland, Australia)
Bomb.DHC.8-400 PW150A 7
Bomb.DHC.8-300 PW123E 6
Bomb.DHC.8-200 PW123D 2
Bomb.DHC.8-100 PW120A 1
On order: 2 Bomb DHC.-8-400s
SUVARNABHUMI AIRLINES
B737-200 Adv JTD-15A 2
YS11-A200 Dart543-10J/K 1
YS11-A500 Dartr543-10J/K 3
THAI AIRASIA
B737-300 CFM55-3B1/B2 12
THAI AIRWAYS INTERNATIONAL
B747-400 CF6-80C2B1F 18
B747-300 CF6-80C2B1 2
50 ORIENT AVIATION APRIL 2007

Aircraft
Engines
No.
B777-300 RB211-Trent 892 6
B777-200ER RB211-Trent 892 4
B777-200 RB211-Trent 875 8
B737-400 CFM56-3C1 6
A340-640 Trent-556 5
A340-540 Trent 553 3
A330-320 PW4164/4168 12
A300-620R PW 4158 13
A300-600R CF6-80C2-A1/A5 6
ATR 72-200 PW124B 1
On order: 6 A380-800s; 1A340-640;
1 A340-540; 2 B777-200ERs
THAI SKY AIRLINES
L1011 Tristar RB211-22B 3
TIGER AIRWAYS
A320-230 V2500-2527-A5 9
On order: 12 A320-230s
TOP AIR (Indonesia)
B737-200 Adv JT8D-9A 1
B727-200 Adv JT8D-9A 1
(stored)
TRANSASIA AIRWAYS (Taiwan)
A321-130 V2530-A5 5
A320-230 V2500-A1/2527-A5 3
ATR 72-500 PW127F 7
ATR 72-200 PW124B 2
On order: 3 ATR 72-500
Option 1 ATR72-500
TRANS MALDIVIAN AIRWAYS (Maldives)
Bomb.DHC-6-300 PT6A-27 15
Bomb.DHC-6-100 PT6A-20 1
TRANSMILE AIR SERVICES (Malaysia)
B737-200C JT8D-9A 1
B737-200F (M) JT8D-9A 1
B727-200F Adv JT8D-15 5
B737-200 Adv JT8D-9A 2
MD-11F PW4462 4
TRANSWISATA AIR (Indonesia)
Fokker 100 Tay-650-15 1
Fokker 50 PW100-125B 1
Fokker 28-4000 Spey-555-15P 2
Bomb.DHC-6-300 PT6A-27 2
TRAVIRA AIR (Indonesia)
Raytheon 1900D PT6A-67D 3
TRIGANA AIR (Indonesia)
B737-200 Adv JT8D-17 1
ATR 42-300 PW120/121 6
ATR 42-300F PW120 1
ATR 72-200 PW100/1204B 1
Bomb.DHC-6-300 PWPT6A-27 2
Fokker 27-200 Dart532-7 1
Fokker 27-500 Dart632-7 2
UNI AIR (Taiwan)
MD-90-30 V2525-D5 7
MD-90-30ER V2525-D5 1
Bomb. DHC.8-300 PW 123 10
Bomb. DHC.8-200 PW123D 1
UNITED EAGLE AIRLINES (China)
A320-210 CFM56-5B4/P 1
A319-110 CFM56-5B6/P 2
VANAIR (Vanuatu)
Bomb.DHC-6-300 PT6A-27 3
VALUAIR
A320-230 V2527/E-A5 2
VIETNAM AIRLINES
B777-200ER GE90-94B 6
PW4084 4
A321-230 V2533-A5 9
A320-210 CFM56-5B4 10
ATR 72-500 PW127F 3
ATR 72-200 PW124B 7
Fokker 70 Tay-620-15 2
On order: 15 B787-8s; 6 A321-230s
VINCENT AVIATION (Australia)
Raytheon 1900C/D PT6A27/34 7
Bomb.DHC.8-100 PW120A 1
VIRGIN BLUE (Australia)
B737-800 CFM56-7B24/26 27
B737-700 CFM56-7B20/22/24 22
On order: 9 B737-800s
Options: 18 B737 700/800/900s
VIETNAM AIR SERVICES
Antonov An-26 A1-24-VT 1
Gen Dynamics (Convair) 580 501-D13D 1
VIVA MACAU
B767-200ER PW4060 1
B767-300 CF580C2B2F 1
WANAIR (French Polynesia)
Raytheon 1900D PT6A-67D 1
WINGS AIR (Indonesia)
MD-80-82 JT8D-217 6
(1 stored)
Bomb. DGC.8-300 PW123 3
XIAMEN AIRLINES (China)
B757-200 RB211-535E4 9
B737-800 CFM56-7B26 8
B737-700 CFM56-7B22/24 15
B737-500 CFM56-3B1/C1 6
B737-300 CFM56-3B2/C1 4
On order: 34 B737-800s
XINJIANG GENERAL AVIATION CO. (China)
Y-12-11 PT6A-27 3
XPRESSAIR (Indonesia)
B737-200 Adv JT8D-9A 2
YANGON AIRLINES (Myanmar)
ATR 72-210 PW127 2
YANGTZE RIVER EXPRESS (China)
B737-300QC/SF CFM56-3B2/C1 5
YETI AIRLINES (Nepal)
Saab 340B CT7-9B 2
(stored)
Bomb.DHC-6-300 PT6A-27 5
BaeJetstream 41 TPE331-14GR/HR 4
Z-AIRWAYS (Bangladesh)
BAe (HS) 748 Srs 2B Dart-536-2 1
ZHONGFEI AIRLINES (China)
Y-12-II PT6A-27 1
ZHUHAI AIRLINES (China)
B737-800 CFM56-7B26 2
B737-700 CFM56-7B24 3
Data courtesy of Ascend CASE database
(www.ascendworldwide.com)
Photographs: Rob Finlayson
TRI-M.G INTRA ASIA AIRLINES (Indonesia)
B737-200 Adv JT8D-17 1
(stored)
B727-200F JT8D-7B/9A 2
APRIL 2007 ORIENT AVIATION 51

BUSINESS DIGEST: DECEMBER STATISTICS
Airline Codes
RPK Growth by Carrier
Passenger Load Factor
Growth by Carrier
BI
Royal Brunei Airlines
MH Malaysia Airlines
BR
EVA Air
NH
All Nippon Airways
25%
12
CI
China Airlines
OZ
Asiana Airlines
20%
10
CX Cathay Pacific
GA Garuda
JL Japan Airlines
KE Korean Airlines
KA Dragonair
Percentage
(Dec 06 vs Dec 05)
PR Philippine Airlines
QF Qantas Airways
SQ Singapore Airlines
TG Thai Airways Int’l
VN Vietnam Airlines
Percentage Points Change
(Dec 06 vs Dec 05)
15%
10%
5%
0%
-5%
-10%
8
6
4
2
0
Percentage
(Jan 06-Dec 06 vs Jan 05-Dec 05)
Percentage Points Change
(Jan 06-Dec 06 vs Jan 05-Dec 05)
-15%
BIBRCI CX GA JL KA KE MH NH OZ PR QFSQTG VN
-2
BIBRCI CX GA JL KA KE MH NH OZ PR QFSQTG VN
Measured growth in 2006
Compiled and presented by KRIS LIM of the Research and Statistics
Department of the Association of Asia Pacific Airlines Secretariat
Steady growth in international
passenger traffic continued in
2006 with another record level
attained, but increases slipped
below the average rate for the
last decade. International freight totals,
meanwhile, continued to increase.
Association of Asia Pacific Airlines
(AAPA) members carried 133.7 million
international passengers, an increase of
4.4% or 5.7 million more passengers when
compared to 2005. Passenger traffic in
revenue passenger kilometre (RPK) terms
grew by 4.3%, down from 5.1% in 2005
and below the average annual growth
rate of 6% for the past ten years. Capacity
increase for the year was modest, growing
by 1.3%, and enabling AAPA carriers to
post a new record passenger load factor of
75.6%.
T h i r t e e n A A PA ca r r ie r s p osted
positive RPK growth in 2006, with growth
rates ranging from 3% for China Airlines
to Vietnam Airlines’ double-digit increase
of 15.2%. Three carriers, on the other
hand, registered traffic declines in 2006:
Malaysia Airlines lost 12%, Japan Airlines
7.1% and Philippine Airlines 3.6%.
Addit ionally, sensible capacit y
deployment helped the majority of AAPA
RPK and ASK (In Billions)
RPK and ASK (In Percentage)
40
RPK, ASK and PLF Growth Rates
(Jan 06 to Dec 06)
15
10
5
0
-5
J
J
F
RPK, ASK and PLF
(Jan 06 to Dec 06)
RPK
ASK
PLF
M
A
M
J J
2006
RPK
ASK
PLF
F M A M J J A S O N
2006 vs. 2005
A
S
O
N
D
D
80
60
40
20
0
15
10
5
0
-5
PLF (In Percentage)
PLF (In Percentage Points)
carriers to post improved passenger load
factors, with 13 carriers seeing more than
70% of their seats filled, led by Cathay
Pacific Airways 79.9%, EVA Air 79.8%,
Qantas Airways 78.2% and Singapore
Airlines 78.2%.
FREIGHT
International freight traffic continued
to grow, up 5.1% year-on-year. Capacity
rose 3.9%, enabling the overall freight load
factor to post a marginal improvement, to
67.1%.
All members posted positive freight
tonne kilometre (FTK) growth in 2006,
with the exception of Garuda Indonesia,
which declined by 11.7%, Royal Brunei
Airlines 4.5%, Japan Airlines 3.1% and
EVA Air 2.4%. Asiana Airlines, with
a 19.1% increase, Korean Air 9.3% and
Cathay Pacific Airways 7.3% posted strong
growth for the year. Growth for Singapore
Airlines at 5.1% and China Airlines 3.5%
was, however, slightly subdued compared
with other large freight operators in the
region.
Growth in freight capacity was led by
Vietnam Airlines at 17.5% freight available
tonne kilometre (FATK) terms, All Nippon
Airways 13.3%, Asiana Airlines 11%,
52 ORIENT AVIATION APRIL 2007

FTK Growth by Carrier
Freight Load Factor
Growth by Carrier
PAX Growth by Carrier
20%
10%
0%
-10%
-20%
-30%
-40%
-50%
BIBRCI CX GA JL KA KE MH NH OZ PR QFSQTG VN
20
15
10
5
0
-5
-10
-15
-20
-25
BIBRCI CX GA JL KA KE MH NH OZ PR QFSQTG VN
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
BIBRCI CX GA JL KA KE MH NH OZ PR QFSQTG VN
Vietnam Airlines: leading the way in revenue passenger kilometre growth
Thai Airways International 9.9%, Korean
Air 8.8% and Dragonair 8.1%, while
those scaling back were led by Philippine
Airlines with a 36.6% reduction, Qantas
Air ways 3.4% , EVA Air ways 2.8% ,
Garuda Indonesia 2.7%, Malaysia Airlines
2.2% and Japan Airlines 1.7%.
Overall a majority of AAPA members
experienced declines in freight load factors
compared to the previous year. Those with
the highest figures were Asiana Airlines
78.8%, Korean Air 77.3%, EVA Airways
73.2% , Dragonair 72.5% and China
Airlines 70.8%.
Email: krislim@aapa.org.my
FTK, FATK and Freight Load Factor
(Jan 06 to Dec 06)
FTK and FATK (In Billions)
4
J
F
FTK
FATK
FLF
M
A
M
J J
2006
A
S
O
N
D
80
60
40
20
0
FLF (In Percentage)
FTK and FATK (In Percentage)
16
12
8
4
0
-4
-8
FTK, FATK FLF Growth Rates
(Jan 06 to Dec 06)
J
FTK
FATK
FLF
F M A M J J A S O N
2006 vs. 2005
D
16
12
8
4
0
-4
-8
FLF (In Percentage Points)
APRIL 2007 ORIENT AVIATION 53

BUSINESS DIGEST
AAPA MONTHLY INTERNATIONAL STATISTICS
Summary of Consolidated Results (thousands)
2006 RPK ASK PLF FTK FATK FLF RTK ATK PAX
Jan 06 47,101,038 62,357,151 75.5% 4,025,999 6,421,068 62.7% 8,440,154 12,205,832 11,009
Feb 06 41,571,554 55,845,378 74.4% 3,791,409 5,664,189 66.9% 7,708,076 10,839,790 10,186
Mar 06 45,507,045 61,393,480 74.1% 4,832,926 6,923,915 69.8% 9,104,583 12,591,959 11,012
Apr 06 44,790,619 60,118,396 74.5% 4,479,972 6,620,981 67.7% 8,674,931 12,223,863 10,903
May 06 43,779,805 61,711,230 70.9% 4,277,940 6,511,632 65.7% 8,405,051 12,272,937 10,573
Jun 06 46,262,155 59,763,374 77.4% 4,431,054 6,591,012 67.2% 8,778,000 12,177,549 10,985
Jul 06 49,657,113 63,011,277 78.8% 4,504,762 6,750,106 66.7% 9,163,685 12,693,471 11,899
Aug 06 49,154,484 62,998,978 78.0% 4,447,161 6,799,095 65.4% 9,058,022 12,748,443 11,971
Sep 06 45,080,361 60,076,588 75.0% 4,698,099 6,784,769 69.2% 8,829,741 12,294,635 10,773
Oct 06 46,662,014 61,790,449 75.5% 4,899,131 7,249,304 67.6% 9,291,427 13,065,210 11,353
Nov 06 45,536,577 60,244,192 75.6% 4,933,387 7,186,514 68.6% 9,220,394 12,848,446 11,240
Dec 06 48,794,685 63,301,040 77.1% 4,798,201 7,102,066 67.6% 9,375,483 13,055,136 11,759
TOTAL 553,897,450 732,611,533 75.6% 54,120,041 80,604,652 67.1% 106,049,547 149,017,271 133,663
2006 RPK ASK PLF FTK FATK FLF RTK ATK PAX
Jan 06 5.0% 2.0% 2.1 5.6% 4.5% 0.6 5.1% 3.2% 4.9%
Feb 06 4.4% 2.0% 1.7 4.9% 2.1% 1.8 4.8% 2.3% 4.3%
Mar 06 3.9% 2.4% 1.0 7.2% 3.4% 2.5 5.5% 3.2% 3.2%
Apr 06 6.9% 2.5% 3.0 5.4% 3.2% 1.4 6.0% 3.3% 6.4%
May 06 4.4% 1.7% 1.8 3.4% 2.3% 0.7 4.0% 2.5% 4.3%
Jun 06 4.2% 0.2% 3.0 3.4% 3.0% 0.3 3.9% 2.2% 4.0%
Jul 06 2.3% 0.1% 1.7 3.1% 2.1% 0.6 2.8% 2.1% 2.7%
Aug 06 3.1% 0.6% 1.9 6.3% 3.6% 1.7 4.8% 3.2% 3.8%
Sep 06 1.7% 0.1% 1.2 6.3% 2.6% 2.4 2.9% 1.5% 1.7%
Oct 06 4.4% 0.5% 2.8 3.1% 5.8% -1.8 3.8% 4.3% 4.3%
Nov 06 5.2% 1.1% 2.9 7.1% 6.9% 0.1 6.3% 5.2% 6.4%
Dec 06 6.6% 2.2% 3.1 5.3% 6.3% -0.6 6.0% 5.3% 6.9%
GROWTH 4.3% 1.3% 2.2 5.1% 3.9% 0.8 4.7% 3.2% 4.4%
CY RPK ASK PLF FTK FATK FLF RTK ATK PAX
2001 449,997,481 632,484,230 71.1% 36,254,186 56,302,344 64.4% 78,370,595 114,075,864 105,860
2002 471,599,221 633,726,957 74.4% 41,760,845 60,792,084 68.7% 86,388,889 118,421,507 112,506
2003 424,867,398 610,926,830 69.5% 43,587,366 64,971,618 67.1% 83,402,125 121,028,734 98,875
2004 505,242,763 692,635,360 72.9% 49,704,793 73,735,163 67.4% 97,093,807 137,542,532 121,915
2005 531,052,164 723,386,103 73.4% 51,499,871 77,609,694 66.4% 101,333,490 144,377,541 128,033
2006 553,897,450 732,611,533 75.6% 54,120,041 80,604,652 67.1% 106,049,547 149,017,271 133,663
CY RPK ASK PLF FTK FATK FLF RTK ATK PAX
2002 4.8% 0.2% 3.3 15.2% 8.0% 4.3 10.2% 3.8% 6.3%
2003 -9.9% -3.6% -4.9 4.4% 6.9% -1.6 -3.5% 2.2% -12.1%
2004 18.9% 13.4% 3.4 14.0% 13.5% 0.3 16.4% 13.6% 23.3%
2005 5.1% 4.4% 0.5 3.6% 5.3% -1.1 4.4% 5.0% 5.0%
2006 4.3% 1.3% 2.2 5.1% 3.9% 0.8 4.7% 3.2% 4.4%
Note: 1. 16 member airlines participate in AAPA Monthly International Statistics. NZ does not participate.
2. Jul-Dec 2006 figures restated
54 ORIENT AVIATION APRIL 2007