A trusted source of Asia-Pacific commercial aviation news and analysis


OCTOBER 2014

Orient Aviation October 2014

 

Cover Story

WINNING FORMULA

The first thing that strikes you about Ivan Chu is his energy. He walks fast. He talks fast. He reputably hikes and skis fast - and there is no doubt he is operating at top speed as Cathay Pacific Airways chief executive. Read More »


 

Main Story

CHALLENGES OF CHANGE

When China Eastern Airlines (CEA), the country’s biggest operator, recently booked a disappointing first half profit of just $8 million, down from $93 million in the same period a year ago, it was only the beginning of the bad news for its shareholders this year. Read More »


 

Special Reports: Aircraft Leasing

China agressively expands its lessor business

International aircraft lessors are being challenged for a greater piece of the global leasing pie by the financial giants of Greater China and their Japanese peers. Read More »


 

News Backgrounder

Go boutique or go bust

Royal Brunei Airlines, one of the Asia-Pacific’s smaller full-service operators, is reinventing itself as a boutique airline ready to take on legacy rivals and budget airlines alike. However, its management admits big challenges lie ahead. Read More »


 

News Backgrounder

Asia’s airlines challenged by U.S. airline consolidation?

Recent developments in the U.S. airline industry are having a significant impact on Asia-Pacific carriers, said someone who should know, the CEO of Hawaiian Airlines, Mark Dunkerley. Read More »


 

News Backgrounder

MAS’s rescue and resuscitation

Consensus has still be reached about the viability of Khazanah Nasional’s US$1.9 billion rescue package for Malaysia Airlines (MAS) as critics contend that de-listing the carrier will not produce the reforms necessary at the distressed airline. Read More »


 

News

Tycoon comes home to PAL

When Lucio Tan stood before Philippine Airlines employees – they fondly refer to him as the “Kapitan” - at a general meeting on September 15 it quickly became clear that this was going to be an emotional gathering. Read More »


 

Comment

A new wave of LCCs for China?

It is no surprise that China’s airlines have hit a rough patch. The once over-regulated industry was bound to encounter challenges as it moved to the competitive global stage. Read More »


 

Regional Round-Up

Gulf juggernaut gains momentum with US$32 billion airport expansion

The arrival of Qatar Airways’ first A380 at the airline’s Doha headquarters last month gave the carrier’s chief executive, Akbar Al Baker, the opportunity to be gracious about his client, and he took it. Qatar had rejected the first three of its 10-plane A380 order but said the delay was not the fault of Airbus. “The delay was caused by us because we demanded additional quality,” Al Baker said. Read More »


 

Regional Round-Up

New resolve at Air India

State-owned Air India has said it plans to cut the number of unprofitable routes to 19% of its overall network at the end of the current financial year, after reducing flights by 38% in the last fiscal year and 60% two years ago, reports India’s Business Standard. “We have completely withdrawn flights not meeting ATF (aviation turbine fuel) costs. Read More »


 

Regional Round-Up

Mitsubishi and Embraer win over JAL

Japan Airlines (JAL) has signed a firm order with Embraer for a total of 15 E-Jets comprising the E170 and E190 models, in addition to 12 further options, valued at US$677 million at current list prices. “We have been operating our E-Jets for five years and the aircraft have achieved an outstanding 99.7% dispatch reliability. They are efficient and have displayed exceptional performance,” said Yoshiharu Ueki, representative director, president of Japan Airlines. Read More »


 

Regional Round-Up

Commission to investigate MAS losses likely

Malaysia’s opposition Pan-Malaysian Islamic Party, or PAS, has called on the government to set up a Royal Commission of Inquiry (RCI) into Malaysia Airline System Bhd.’s (MAS) losses over the years. Read More »


 

Business Round-Up

IndiGo cuts $2.6 billion deal with China lessor

Indian low-cost carrier (LCC) IndiGo has signed a $2.6 billion deal with China’s Industrial and Commercial Bank of China Ltd. (ICBC) who will finance the Gurgaon based airline’s acquisition of 30 new A320s. IndiGo is India’s largest carrier, with a market share of 32%, and the only airline on the subcontinent that has been continuously profitable since its 2006 launch. Read More »


 

Business Round-Up

AirAsia Group loss-making as competition increases

AirAsia Group has turned in unexpectedly poor performance results for second-half 2014. While the group’s Malaysian subsidiary, AirAsia Malaysia, remained profitable with a small operating margin, all of the group’s overseas affiliates incurred losses. The group’s performance is in line with results from other low-cost Asia-Pacific carriers as they struggle to maintain yields in a market with too much capacity. Read More »


 

Business Round-Up

Lifeline for THAI

Thai Airways International (THAI) is struggling to make ends meet and has embarked on a restructuring mission aimed at turning its fortunes around after a net loss of 7.654 billion baht (US$236 million) in second-quarter 2014, more than double its 2.899 billion baht loss in the year-ago period, and the fifth consecutive quarter of losses for the legacy carrier. Read More »


 

Business Round-Up

Gulf Air cuts losses

Bahrain’s Gulf Air has cut its first-half 2014 losses “by more than 30%” compared to the same period a year ago, the airline said. Read More »


 

Business Round-Up

Profitable Juneyao applies for IPO

China’s ‘boutique’ budget carrier, Juneyao Airlines, has bucked the trend of dwindling profits and losses at Mainland carriers in 2014. The airline posted a 191 million yuan (US$31.1 million) operating profit on revenue of 3.2 billion yuan for the reporting months. Read More »


 

Short Takes

AIRLINES: Air India has suspended a pilot and 10 cabin crew for habitually showing up late for work and delaying, amongst others, flight AI144 from Newark to Mumbai by over two hours on September 13. Apsara International Air, a new start-up financed by Chinese investors, has received its AOC and plans to commence domestic services out of Phnom Penh later this month using an A320. Read More »


 

People

Hogan handpicks ‘New Alitalia’ CEO and CCO

Sweeping changes have arrived at Alitalia after Etihad Airways’ 49% equity investment in the struggling flag carrier was finalised. Last month Alitalia announced the appointment of Silvano Cassano as chief executive officer (CEO). Read More »


 

Business Digest

Long haul demand lifts monthly traffic

Asia Pacific airlines carried 20.5 million international passengers in June, 1.6% more than the same month last year. Read More »