Home' Asian Aviation : AAV_Oct 2012 Contents 6 AsianAviation | OCTOBER 2012
JAL raised ¥663 billion (US$8.5 billion) in
its IPO but saw its share price take a dive as
the dispute between Japan and China over
the uninhabited Senkaku/Diaoyu islands hit
both JAL and ANA.
CitiGroup estimates that as much as 40%
of Chinese leisure travel to Japan was cut in
the second week of September as a result
of the dispute. JAL is reducing service to
Beijing and Shanghai and says that 12,000
seats have been cancelled in the September-
ANA has also seen significant
cancellations and is downgrading aircraft
size, putting Boeing 737s on some routes to
China usually served by 767s, and 767s on
some 777 routes.
Meanwhile, ANA has given the Boeing
787 a significant thumbs up by ordering
11 more of the type. ANA was the launch
customer for the 787, taking its first unit
last year, and said before the order was
announced that will have be 20 787s in the
fleet by the end of the year, rising to 27 by
the end of next year, and 55 by 2017 (see
Big in Japan, p26).
The latest order, valued at US$2.7 billion
at current list prices, bring the total number
of 787s ANA has ordered to 66 aircraft
consisting of 36 787-8s and 30 787-9s.
"The improved fuel efficiency and greater
seating capacity of the 787-9 will provide
ANA with added flexibility," said Hideki
Kunugi, head of aircraft purchasing & sales
at ANA. "The new Dreamliners will also
help support the profitable expansion of
ANA s international and domestic routes in
the future." -- Colin Baker
Qantas has agreed a partnership with
Emirates that will see the Australian carrier
operate its European services via Dubai
rather than Singapore. For more see p16.
EMIRATES IN TIE UP
JAPAN-CHINA SPAT HITS FLIGHTS
In a significant step up in Asian LCC hostilities,
Lion Air is launching a budget airline in
Malaysia in conjunction with NADI, the parent
of aerospace engineering provider Airod.
Malindo Air, as the new venture will be
called, is designed to be a "hybrid" carrier,
offering both premium and economy seats,
in-flight entertainment and digital connectivity.
NADI will hold 51% of Malindo, with the rest
held by Lion Air.
It is expected to launch in May next year
with Boeing 737-900 aircraft, with plans to
acquire 12 aircraft per year and grow to
100 aircraft within ten years - accounting for
a significant chunk of Lion Air s huge 737
order. After 2015, it also plans to add 787
Dreamliner s to the fleet, becoming the latest
convert to the long-haul low-cost concept.
Lion Air believes there is plenty of room
in the Malaysian market, arguing: "There is
still a need for two-to-three more airlines with
specific business models by 2030."
Pointing to Boeing figures which suggest
that the Asia-Pacific region will need 185,600
pilots and 243,500 technicians by 2030, Lion
Air says that Malaysia has the foundation to
meet the training, supply chain management
and MRO needs.
Maybank analysts believe this poses a
considerable challenge to AirAsia: "Our
estimates suggests AirAsia has a marginal
cost advantage due to its scale and efficient
operations. However, Malindo Air scores
higher marks on value proposition as it offers
complimentary frills such as bigger seats, light
snacks, in-flight entertainment and uses an
aerobridge for passenger embarkation. We
think a price war is a certainty, which will
translate to profit erosion for the incumbent."
Airod has traditionally focussed more on the
defence industry, but its commercial aircraft
capabilities include the Boeing 737 (classic
and NG), Bombardier CRJ/GEX and ATR-
42/72. -- Colin Baker
LION AIR TO TAKE ON AIRASIA IN MALAYSIA
NEWS IN BRIEF
Philippine Airlines (PAL) is undergoing
a much needed fleet revamp with a firm
order with Airbus for 34 A321ceos, 10
A321neos and 10 A330-300s. Deliveries
are due to start in 2013.
A320NEO SET FOR CHINA
ICBC Financial Leasing has signed an
agreement with Airbus for a total of 50
A320 Family aircraft, including 30 A320ceo
and 20 A320neo. The deal makes ICBC the
first Chinese customer for the A320neo.
FIRST ASIAN ATR 72-600
ATR has delivered its first ATR 72-600
aircraft in the livery of an Asian carrier. The
aircraft, with registration number B-17001,
has been handed over to Taiwan-based
carrier UNI AIR, a regional subsidiary of
EVA AIR. It is expected to enter service
in mid-October, with a first commercial
domestic flight from Taipei to Taidong.
-- Colin Baker
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