CHARM OFFENSIVE - Orient Aviation

a deterioration in FLF as the decline in freight traffic significantlyoutstripped the capacity reduction. China Airlines (69.1%) andAsiana Airlines (67.8%) were the only carriers to register a loadfactor higher than 65%.Results of the 12 Months to May 31, 2001The AAPA carriers’ consolidated RPK traffic rose 8.6% whilePAX grew 8.2% during the 12 months under review. Capacityincreased 6.2% resulting in a 1.7 percentage point improvementin PLF to 74.9%.Cargo ResultsThe consolidated FTKs for the year to May 31 grew 2.6%.Capacity, up 6.3%, outpaced traffic and contributed to a declinein load factor of 2.5 percentage points to 67.9%.All Nippon Airways: Passenger and cargo traffic well down inFTK Growth by CarrierPercentage (May 01 vs May 00)SummaryPassenger traffic contracted marginally in May year-on-year.Nevertheless, the trend, after adjusting for seasonality, indicatedflat growth and it is expected to remain so for the next few months.The peak months for air travel from July to September may offersome improvements in load factor over previous months, butprovide little real growth over last year.Freight traffic continued to deteriorate. The overall load factorshed 10 points for the second consecutive month as capacityexpansion persisted. The best hope of a trade rebound may be inthe last quarter of the year with the expected accession of Chinainto the World Trade Organisation in November and the anticipatedrecovery of the U.S. economy evident by the positive outlook forcorporate profits in the fourth quarter of 2001.E-mail:krislim@aapa.org.my20100-10-20-30NHPR BR JL BI SQ OZ GA CX TG CI VN ANPassenger Load Factor Growth by CarrierPercentage Points Change (May 01 vs May 00)Freight Load Factor Growth by CarrierPercentage Points Change (May 01 vs May 00)1208-44-80-4-12-8-16-12GA VN PR CX TG JL OZ NH SQ BR CI BI AN-20GABR CI NH TG PR OZ JL BI CX SQ VNANROLLS-ROYCE NEWS DIGEST“Continental Airlines has awarded Rolls-Royce a $360 million Total Careagreement for maintenance of its RB211 engine fleet.”September 2001 | Orient Aviation | 49