OAMag-V7N4-Cover [Converted] - Orient Aviation

N E W Scarriers you can kiss your national flag carriergoodbye. It’s a fact.”The row between the two countriescentres on PAL’s objections to the Taiwanesecarriers picking up traffic in the Philippines androuting it through Taiwan to the U.S. PAL claimsit is an abuse of the 1996 agreement while theTaiwanese carriers assert what they did andwant to continue to do, is a proper applicationof their sixth freedom rights under the treaty.On October 1 last year, the Philippines Governmentcancelled regular scheduled flights toand from Taiwan. The Philippines Governmentsought, but failed, to reach a negotiated settlementwith the Taiwanese bureaucrats and thebilateral agreement between the two countrieswas cancelled. The final links between theairlines’ operations in Taiwan and the Philippinesclosed down on December 31. Since then,PAL has been particularly hurt by the ongoingdispute as the Manila-Taipei route made moneyfor the struggling national flag carrier.China Airlines equitysale delayed againTHE proposed sale of 35% of China Airlines,planned to take place in December, hasbeen delayed until at least the end of February.The state-run Central News Agency said thedecision was made because the current priceof China Airlines (CAL) shares was too low.CAL is 71% owned by the quasi governmentorganisation, the China Aviation DevelopmentFoundation (CADF).In the last 18 months, the CADF has beentrying to reduce its holding in CAL, but withno success. A year ago, Singapore Airlines(SIA) formally withdrew from its plan to buy alarge stake in the carrier, reportedly because ofconflicts over management control.In June last year, brokers Salomon, SmithBarney were given six months to find anotherbuyer. CAL president, Sandy K. Y. Liu, told OrientAviation there are a number of airlines in‘the frame’. Insiders say they don’t believe afirm prospective buyer, yet to be identified,will come from within the region.Cambodia gambles on openskies to woo touristsCAMBODIA has announced an open skiespolicy to lure more international airlines tolaunch services designed to bring more touriststo the country’s famed temples.One carrier, Vietnam Airlines, has alreadytaken advantage of the new deal, launchingflights from Ho Chi Minh City in southernVietnam to Siem Reap in northern Cambodia,which is near the site of the Angkor Wattemples.Tourists previously had to fly throughthe Cambodian capital, Phnom Penh, or viaBangkok to reach Angkor, the stone ruins ofan abandoned 12th century royal city.But the move has failed to win universalsupport from local tour operators and the nation’snational flag carrier, Royal Air Cambodge.The airline fears heightened competition willhurt its revenue.Tourism officials believe visitors will beencouraged to fly direct to Siem Reap, hurtingthe tourism business in Phnom Penh.Cambodian Prime Minister Hun Sen announcedthe new policy in December, sayingregional airlines will be allowed to fly directto Siem Reap. A government official said carriersfrom such places as Taiwan, Hong Kong,Malaysia, Singapore, Thailand, Vietnam andIndonesia are now free to launch flights.Thailand’s Bangkok Airways is currently theonly foreign carrier serving Siem Reap.The upgrading of Siem Reap airport tohandle larger aircraft is due for completion inMarch. More than 184,000 visitors flew in toPhnom Penh and Siem Reap in the first ninemonths of 1999, compared with 136,000 in thesame period of 1998. The government expectedtourist arrivals to increase by an annual 30%.Anti-trust move byAir NZ, United AirlinesSTAR Alliance partners Air New Zealand(Air NZ) and United Airlines have jointly filedfor anti-trust protection in the United States, amove they say will enable them to strengthentheir alliance relationship and offer morebenefits and services to their mutual customersthrough increased co-ordination of theirnetworks.“If granted, anti-trust immunity will enableAir New Zealand and United to share information,allowing both carriers to offer consumersthe benefit of their combined networks”, saida statement from Air NZ.The US Department of Transportation,which will rule on the request, has approvedseveral other applications for anti-trust immunitybetween U.S. and foreign airlines, mostlyin Europe. Without such protection partnerairlines are unable to co-operate openly onpricing and other critical marketing fronts.Sentimental CFMIsays thanks with bubblesWITH a single bottle of champagne and anote of thanks to the entire production team,CFM International shipped its last CFM56-3engine to Boeing for its installation on theairplane manufacturer’s final classic B737, to bedelivered to CSA Czech Airlines this month.CFMS International is a 50/50 joint venturebetween Snecma of France and GeneralElectric of the U.S. When Boeing selected theCFM engine to power its B737-300, -400 and– 500 series in 1981, the company predicted itwould sell 400 airplanes. Nineteen years, 1,867aircraft and 3,975 engines later, the aircrafthas put CFM in the record books as the largestselling supplier of aircraft engines in the world.Although the final installed engine has leftthe company’s shop, CFMI will produce 20 to30 spare engines per year for the next severalyears. Well done!18 | Orient Aviation | February 2000