REGIONAL ROUND-UP<strong>Aviation</strong> chief Yanggives LCCs majorboost in ChinaChinese aviation delegates attendingChina’s five yearly political congressin Beijing in October provideda clear indication of their policy strategiesfor the industy “on its sidelines” of the17th Communist Party Congress.<strong>Aviation</strong> minister, Yang Yuanyuan,head of the Civil <strong>Aviation</strong> Administrationof China (CAAC), told reporters there wereno plans to amalgamate some or all of the“Big Three” carriers: Air China, ChinaEastern Airlnes and China SouthernAirlines.However, there are plans to build asecond airport south of Beijing, specificallyfor low-cost carriers. Yang said a sitehad been chosen for the complex and theCAAC was “devoted “ to developing lowcostairlines.Elsewhere at the gathering, Air China’schairman, Li Jiaxiang, said Air China hadno plans to order the A380 and added thatonly three Mainland airports can accommodatethe aircraft.Vietnam Airlines orders10 A350 XWBSSizzling Vietnam Airlines, whichhas one of the highest growth curvesin the Asia-Pacific, has signed aMemorandum of Understanding to acquire10 A350 XWB airplanes and 20 additionalA321s.Vietnam is predominantly an Airbus airline,but it has ordered four B787s with thepossibility of increasing the order to 16 ofthe airplanes. It is speculated that the adventof Qantas Airways in Vietnam, via its18% investment in low-cost carrier (LCC),Pacific Airways, and the planned joint venturebetween Vietnam’s Vinashin and theOpen Skies progressHainan Airlines, now China’s fourth largestcarrier, could have 250 aircraft in five yearsAirAsia group, might persuade the nationalflag carrier to launch its own LCC.Virgin Blue closerto flying to U.S.Virgin Blue has received a boost inits bid to begin trans-Pacific servicesfrom Australia to the U.S.West Coast with the news that Australia andthe U.S. are committed to reaching an OpenSkies agreement by early 2008.Virgin Blue, which is majority-ownedby Toll Holdings Ltd, has announced itintends to launch V Australia on the route bylate next year. It has ordered six B777ER aircraftfor the new subsidiary airline.Separately, Virgin Blue will introducea premium economy section on itsAustralian domestic flights as part of itsstrategy to wrest more corporate travellersfrom Qantas.Hainan’s Chen Fengbranches into insuranceThe HNA Group, majority ownerof Hainan Airlines, is setting up aUS$65 million joint venture insurancecompany with Taiwanese insurancecompany, Shin Kong Financial HoldingCo.HNA group chairman, Chen Feng, toldreporters in Beijing last month the Mainlandgovernment had approved the 50/50 jointventure, which will start operations in mid-2008.He said the group’s airline passengersand airlines were potential customers for thenew company’s travel, airplane, passengerand airport equipment policies.Separately, the charismatic boss ofChina’s fourth largest aviation companysaid he will now proceed to put all thegroup’s airlines – Hainan Airlines, ChinaXinhau Airlines, Chang’an Airlines andShangxi Airlines into a new holding company,Grand China Air, based in Beijing,following the completion of discussionswith the Chinese regulatory authorities.The group’s carriers have a fleet of 130planes, which would be increased to 240-250 aircraft in five years, said Chen. Inmid-October, Hainan Airlines orderedeight A330-300s for service on its routes toBrussels and Budapest.<strong>Aviation</strong> will account for 70% of thegroup’s business, he told the South ChinaMorning Post, but he did not see his airlinesimmediately expanding its internationalnetwork. As well as its domestic services,Hainan flies to Hong Kong, Japan, Korea,Greater China and several Southeast Asiancities.CAL boss takes on dual roleThe Malaysian government has announced it will lift controlson at least four Malaysia-Singapore services, movingcloser to abolishing the exclusive rights of the MalaysiaAirlines (MAS) and Singapore Airlines (SIA) to fly betweenthe two countries.Malaysia said twice daily routes between Singapore and KualaLumpur, Kota Kinabalu, Kuching and Penang, are to be openfor bids from non-MAS and non-SIA airlines. At press time,Singapore had yet to announce if it agreed to the Malaysian governmentproposal.Ringo Chao (51), the president of Taiwan’s flag carrier,China Airlines (CAL), has added the chairman’s duties tohis portfolio after Phiip Wei resigned in October.Wei, 65, stepped down following an accident in Okinawa inAugust when a CAL B737-800 burst into flames. All passengers andcrew were safely evacuated from the aircraft. Initial investigationssuggest the fire was caused by maintenance error.Wei began his career with CAL in 1970 and under his leadershipthe airline invested millions of dollars in the last decade in an effortto establish the highest levels of operating safety.10 ORIENT AVIATION NOVEMBER 2007
Garuda pilot ‘ignored 15 GPWS alarms’At press time, Indonesian flagcarrier, Garuda Indonesia,said it would not commenton the National TransportSafety Commission reporton the fatal March 7 crash of one of the carrier’sB737 jets until it had fully studied thereport.The Indonesian safety investigationfound that the accident, which killed 21 of133 passengers and crew onboard whenthe aircraft crashed at Yogykarta Airport,was caused by the pilot ignoring 15 alarmsfrom the ground proximity warning systemand failing “to go around” as the aircraftapproached the runway at too high a speed.It also said the pilot had bypassed the copilot’srequest “to go around” and attempt asecond landing.Head of the transport safety commission,Tatang Kurniadi, said Garuda andother airlines had received a report fromhis organisation that outlined recommendedsystems to improve safety standards. Thereport, in a supplementary section, said theco-pilot may not have received sufficienttraining to cope with aircraft emergencies.Three Indonesian airlines have beeninvolved in recent fatal accidents. Twentysix months ago, a Mandala Airlines B737-200 crashed in Medan, killing 150 people.On January 1 this year, an Adam Air B737-400, carrying 102 passengers, dropped outof the sky over Indonesian waters. Therewere no survivors. Three months later, theGaruda accident occurred at Yogyakarta.Both the pilot and co-pilot survived thecrash and have been grounded, an airlinespokesman said (See Crash could effect liftingof EU ban on Garuda p. 36).Weather blamed for Phuket crashThailand’s National Transpor t Per manent Secretar y, ChaisawartKittipornpaiboon, said de-coding of the “black box” of the One-Two-Goairliner, which crashed at Phuket International Airport two months ago,revealed the fatal accident was caused by bad weather.As chairman of the investigation, Chaisawart said the recordings revealed the flightsuffered from wind shear. The preliminary conclusion indicates the captain tried to pullup the plane before landing. Ninety of the 130 passengers aboard the flight died after theaircraft landed, skidded off the runway and burst into flames.BUSINESS BRIEFS• CHINA Southern Airlines reported a 49% increase in net profitfor its third quarter, to September 30. The Guangzhou-based carriersaid China’s economic growth had boosted profits to 1.88 billionyuan (US$250.5 million) compared with 1.26 billion in thesame three months in 2006.• OASIS Hong Kong Airlines and AirAsia X have secured, orare seeking investors, for their expansion. Hong Kong-based fund,Value Partners, has invested US$30 milion in the Hong Kong longhaulbudget carrier at the same time as existing shareholders havetopped up the airline coffers with HK$200 million (US$25.81 million).All funds raised are for fleet expansion. AIRASIA X, a newlow-cost, long-haul airline, said it planned to raise US$80.3 millionwhen it puts 20% of the carrier up for sale. The Malaysia-based LCCwill launch operations with a Kuala Lumpur-Gold Coast (Australia)service, with seat prices starting at US$235 one way.• ALL Nippon Airways (ANA) has changed its methods used forcalculating aircraft depreciation, which has resulted in a chargeof Y66 billion (US$565 million) for the current fiscal year. ANAsaid the sale of its hotel group earlier this year, for Y130 billion,would offset the loss.• Steve Swift, from Australia’s Civil <strong>Aviation</strong> SafetyAuthority, received the annual Whittle Safety Award, at an internationalair safety conference in Seoul last month. Swift developed thediamond analytical model to better understand damage tolerance inaircraft and more accurately detect structural fatigue.NOVEMBER 2007 ORIENT AVIATION 11