Fleet Census - Orient Aviation

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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

Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia

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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The views expressed in this magazine are not necessarily

those of the Association of Asia Pacific Airlines.

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

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