geoff dixon - Orient Aviation

2005 YEAR END REVIEW
It was a year when management changes seemed more
prevalent than ever. Some were forced, others voluntary. But
whatever the reason, many of the region’s carriers headed
towards 2006 with new leaders at the helm.
In October, Air New Zealand announced its choice to
succeed Ralph Norris as chief executive. Norris quit in June to
return to banking as managing director and chief executive of the
Commonwealth Bank of Australia.
After an international search, his successor, Rob Fyfe, came
from within the airline’s ranks. Fyfe was formerly group general
manager, airlines.
At Cathay Pacific Airways, Philip Chen succeeded David Turnbull
as chief executive when Turnbull moved into
the chairman’s seat at parent company, Swire
Pacific. Chen is the first ethnic Chinese to
head the Hong Kong flag carrier.
Across the border in Mainland China, Si
Xian Min and Luo Chaogene were settling in
as presidents of China Southern Airlines and
China Eastern Airlines respectively. Mineo
Yamamoto took the top job at All Nippon
Airways after the retirement of the reformist
chief executive, Yoji Ohashi, who pulled the
carrier back to financial respectability.
At Royal Brunei Airlines, Pengiran Yusof
Jeludin was named acting chief executive
IN: Cathay Pacific
chief executive,
Philip Chen
after the resignation in August of Peter Foster. EVA Air began
the year with a re-shuffle that saw Steve Lin move from president
to chairman and Chang Kuo-wei rise from chief executive vicepresident
to president. Philip Wei was made chairmen of China
Airlines and his successor as president is Ringo Chao.
At the low-cost carriers, Qantas Airways’ secondee, Ken Ryan,
became Jetstar Asia’s first chief executive when Con Korfiatis, who
took the carrier to its launch in December 2004, returned to its
Australian co-owner. Ryan was put in charge of both Jetstar and
Valuair when the two merged later in the year, although at the time
PEOPLE
A year of
of the announcement that was to be a temporary affair until a full
management structure was worked out. Sim Kay Wee, a 30-year
Singapore Airlines (SIA) veteran, had quit as Valuair chief executive
a few months earlier after less than a year in the job.
In Hong Kong, a familiar face was back on the frontlines in the
form of Dragonair’s founding chief executive, Steve Miller, who
spent the year getting long-haul, low-cost start-up Oasis Hong Kong
Airlines into shape, ready for a launch next year. Andrew Pyne,
former head of international affairs at Cathay Pacific, was doing
the same for Macau Eagle Aviation Services, whose WOW!Macau
– soon to be Viva Macau – edged closer to winning the route rights
it needs to operate from the fast-expanding
gambling city.
Dr Cheong Choong Kong, former SIA
chief executive, re-emerged as deputy
chairman of China’s United Eagle Airlines
(UEA) which started flying domestically
from Chengdu, China, in June. The carrier
appointed a former Northwest Airlines
executive, Ms Kai Duell, as chief executive,
making her the country’s first female airline
boss.
In London, an old friend of the region
began packing his bags to return to Australia.
Rod Eddington, now Sir Rod, finally ended
OUT: Malaysia
Airlines managing
director, Ahmad
Fuaad Dhalan
‘Frilling’ time
Continued from previous page
Thailand’s Orient Thai Airlines and owner
of LCC, One-Two-Go, agreed. “Simple, nofrills
offerings will no longer be competitive.
Generic LCCs will need to consider an
improved value proposition to remain in the
game,” he said.
Not according to Fernandes, AirAsia’s
founder. “I’m dead against it. Look at
AirAsia three years ago. Look at AirAsia
now. We are exactly the same. You are
confusing the model and introducing
complexity,” he said.
Australia’s Virgin Blue, now under
the control of Patrick Corp., led the way
towards some kind of transformation in
2005. It has plans for valet parking, lounge
access, inflight television, refundable fares
and priority check-in, and a frequent flyer
programme. All at a price. “We are offering
very cheap seats, but you can trade up,”
chief executive Brett Godfrey told Orient
Aviation.
Planned start-ups and airlines
r e p osit ion i ng t hemselve s
appeared to be straying from the
creed. Vietnam’s Pacific Airlines,
a loss - making t raditional
operator now being repackaged,
nevertheless said it would be
“value based”, offering food and
entertainment, but keeping its
seats cheap.
Chinese operations hardly
fit the LCC mode . Landing fees
and import tariffs are fixed and jet
fuel prices controlled, meaning
private companies have little
control over significant chunks
Virgin Blue
chief executive,
Brett Godfrey,
introducing a
frequent flyer
programme at
the carrier
of their expenditure.
P rot e st s t o t he Civ i l Av iat ion
Administration of China (CAAC) stymied
Shanghai-based Spring Airlines’
bid to heavily undercut its rivals
on price when it launched in July.
Within a week fares were raised.
Okay Airlines, which launched
this year as China’s first private
carrier, has normal airline service
and normal ticket prices.
Over the old borders, in Hong
Kong and Macau, Oasis Hong
Kong Airlines and WOW!Macau
– expected to be renamed Viva
Macau – spent the year carving
out the long-haul and mediumhaul
routes that fit their respective
low-cost business models.
Both plan to offer some
48 ORIENT AVIATION DECEMBER 2005-JANUARY 2006