Home' Asian Aviation : AAV Dec Jan 2010 Contents 34 AsianAviation | DECEMBER 2010 / JANUARY 2011
Asia suffers from overseas
regulation, AAPA says
Even as the Asia-Pacific is poised to be a driver in global aviation growth over the next 20 years, airlines in the region
are suffering from regulations being imposed overseas, writes Justin Wastnage.
Asian aviation is in the ascendancy,
but it risks leaving its regulation
to other parts of the world. is,
in essence, was the message given
to delegates at the 54th Assembly
of Presidents of the Association
of Asia Paci c Airlines (AAPA), held in Brunei in
Statistics from the International Air Transport
Association (IATA) show that the Asia-Paci c region
will overtake the world's busiest air-tra c regions,
North America and Europe, within 20 years. is
year, passenger tra c in the Asia-Paci c region will
grow by 15 percent and air cargo by some 30 percent,
compared with more sluggish growth of 1-3 percent
expected from the two mature markets.
e AAPA comprises some of the region's biggest
carriers: All Nippon Airways, Asiana Airlines, Cathay
Pacific Air ways, China Airlines, Dragonair, EVA
Air ways, Garuda Indonesia, Japan Airlines, Korean
Air, Malaysia Airlines, Philippine Airlines, Royal
Brunei Airlines, Singapore Airlines, ai Air ways
International and Vietnam Airlines.
ese carriers will see growth accelerate over the
coming decades, said Chris Buckley, Airbus executive
vice-president for Europe, Asia and the Paci c. "North
America is actually saturated, and thus almost no
growth will happen over the next two decades and
most aircra sales will be for replacement. Europe
still has room to grow, but our focus is now on Asia,"
Over a third of the world's requirement for 16,977
single-aisle aircra will come from the Asia-Paci c
region, Airbus estimates, and almost half of all demand
for A380 or Boeing 747-class very-large airliners.
US airframer Boeing agreed, with Dr Fariba
Aladari, Asian vice-president for the Chicago -based
manufacturer describing the airlines of this region
as "standout" in terms of tra c growth. " e airline
industry made US$9 billion globally last year, of
which US$5 billion was from Asia Paci c," she said.
AAPA membership encompa sses 60 percent
of the Asia-Paci c region's capacity, similar to its
counterparts the US Air Transport Association (ATA)
and the Association of European Airlines (AEA).
Yet unlike those groups, the AAPA has no single
government to lobby for regulatory change. Most new
aviation rulemaking comes either from Washington
DC or Brussels, where the association now focuses
most of its e orts. is leaves AAPA carriers at a
disadvantage, notably since much of the regulation
passed by the US Department of Transportation and
the European authorities become global standards,
said the a ssociation's Director General Andrew
ere are several lead aviation safety regulators in
the region, notably those from Australia, Hong Kong
and Singapore, but little common lobbying against
the ra of what Herdman views as "well-intentioned",
but "ill-conceived and counterproductive" aviation
legislation emanating from the old world.
"Aviation is a heavily regulated industry and this
regulation is dominated by the US and European
Union, because together they represent 60 percent of
the industry. But as the emergence of the G20 [group
of twenty nance ministers from major economies]
as the world's primary economic forum rather than
the G8 [group of eight leading industrialised nations]
shows, there's a new world economic order. Asia has
shown it can lead commercially, but it needs to take a
larger role in shaping regulation," he said.
e AAPA passed ve resolutions at the assembly,
all aimed at ghting a more concerted campaign
in the face of this mounting legislative pressure.
"Governments need to rethink unwarranted and
ine ective policies on the environment, taxation and
passenger ser vices," Herdman said in the assembly
e association's chief fear is the spread of mandatory
passenger protection rules. e European Union was
the rst to guarantee minimum customer service and
compensation guarantees in the event of ight delays
e EU Regulation 261 on air-passenger rights
has drawn criticism not only from low-cost carriers
(Ryanair is locked in a court battle over its refusal to
The AAPA represents 15 of the Asia-Pacific region's largest airlines.
AAPA Summit Report
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