geoff dixon - Orient Aviation

COMMENT
A year to remember, but...
Let’s not get carried away. It’s true the last financial
year, 2004-05, was an “unprecedented”
year for the 17 members of the Association of
Asia Pacific Airlines (AAPA) as director general,
Andrew Herdman, said at November’s
Assembly of Presidents in Hong Kong.
But he also urged caution about the current year, as
fuel prices remained high and other competitive pressures
threatened to eat into the bottom lines of the AAPA carriers.
However, it’s important we do not underestimate the quite
extraordinary performance of the AAPA airlines last year. Net
income reached a record US$3.5 billion and operating profit
hit a five-year high of $3.9 billion in the year to March 31. And
while fuel prices were creating mayhem with airlines’ bottom
lines and sending operating costs soaring, bumper passenger
traffic figures and higher yields put operating revenue well
ahead of costs.
But that was last year, and the warning signs are such that
in 2005 the euphoria of 2004-05 will likely not be repeated.
As Herdman noted at the Assembly, some airlines have posted
losses in their quarterly results in the last six months mainly
because of fuel price increases.
Air cargo demand, a good barometer of the global
economy, also has slowed which could affect spending on
travel. And there are other factors, like competition from
low-cost carriers, that need to be addressed. Airlines need to
continue to manage costs and improve productivity.
The Asia-Pacific carriers have excelled at cost management
in recent years and bounced back strongly from major
crises in a way that has set them apart from operators in the
rest of the world. As a result, the region now has some of the
most profitable airlines in the world serving their passengers.
It was perhaps this fact that prompted Herdman to appeal
to the global industry to give credit where credit is due and not
underestimate the power of the Asia-Pacific carriers. After
all, AAPA member airlines represent 18% of global passenger
traffic and 33% of cargo traffic.
And given the market forecasts for the region, aided and
abetted by the growing powerhouse of China, the industry can
only get stronger.
*As the region’s aviation industry grows, so does Orient
Aviation’s reputation. An ACNielsen readership survey
has found that Orient Aviation “has significantly established
itself as the leading commercial aviation magazine in the Asia-
Pacific region.” Readership penetration was put at 97%.
BARRY GRINDROD
Chief Executive
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 Alan Wong
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 Stanley Hui
Asst. 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 Toshiyuki Shinmachi
Director, International Public Relations,
Mr Geoffrey Tudor
Tel: (813) 5460 3109 Fax: (813) 5460 5910
Korean Air
Chairman and CEO, Mr Yang Ho Cho
Senior VP, Corporate Communications,
Mr Jun Jip Choi
Tel: (822) 2656 7065 Fax: (822) 2656 7288/89
Malaysia Airlines
Chairman, Dato’ Dr Mohamed Munir Abdul Majid
Asst 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, Mr Kanok Abhiradee
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
DECEMBER 2005-JANUARY 2006 ORIENT AVIATION 7