Home' Asian Aviation : AAV July-Aug 2014 Contents 6 AsianAviation | JULY-AUG 2014
June was a busy month for the aviation
industry -- and aviation journalists. The Airbus
Innovation Days in Toulouse was a chance for
the European manufacturer to provide updates
on areas ranging from the 'A330 neo' to how it's
extending its global supply chain footprint into Asia.
On the new programme front it was an
opportunity to talk about its A350XWB and
A320neo family -- both seem to be on track. There
was even time to give journalists a spin over the
Pyrenees in the A350!
In the Asia-Pacific, Mitsubishi is no doubt hoping
that the Farnborough Air Show will prove to be it's
lucky venue. After a good show in 2012, it's been a
turbulent time since then for its MRJ programme.
Programme delivery is one thing -- and pretty much
all OEMs have been challenged in this regard in
Just as important is developing a customer support
network to provide service after the sale has been
made and delivered. This is probably going to be as
challenging for new entrants as programme delivery.
Mitsubishi seems to have wisely teamed up with
Boeing for customer support, allowing it time to build
up its own network.
This issue also covers Honeywell Aerospace, a
company with a presence in more areas of aviation
than most! In Asia, the US company has been
focussing much of its attention on China, and has its
regional commercial aviation HQ in Shanghai.
China is also proving a battleground for Airbus
and Boeing, with the latter winning an 80 strong
order for its 737 from China Eastern in June. This
matches an order for 80 Airbus A320 family aircraft
from China Southern announced in May.
In its statement accompanying the planned order,
China Southern noted that growth in the low-cost
segment was likely to outpace the traditional business
model. China Eastern has also been making moves
in the budget sector, which is in the process of being
liberalised (to some extent) by Beijing. It would not
be a surprise if a significant number of these aircraft
end up with LCC affiliates.
Elsewhere, Malaysia Airlines held its annual
general meeting, with lots of talk about reform, but
little in the way of concrete plans.
Earlier in June there was talk of Etihad coming
to the rescue, but this was strongly denied by
both airlines, and appears to be a case of over
extrapolation from a possible meeting at the IATA
AGM in Doha.
Making this all the more unlikely is the fact that
Etihad will no doubt have its hands full with Alitalia,
with the deal to take a 49% stake apparently
being given the go-ahead -- although the European
regulators will no doubt be taking a close look at
European airlines are facing a double whammy
from the Gulf carriers -- they are siphoning off traffic
and now appear to be throwing cash at airlines
that would otherwise have gone to the wall, thus
Alan Khee-Jin Tan, Professor of Aviation Law,
National University of Singapore, looks at the
mooted EU-ASEAN open skies in this issue. One
of the possibilities is a "metal--neutral" operations
with the likes of Garuda Indonesia and KLM. An
The main driver behind all this is the rise and rise
of the Gulf hubs -- our airport ranking in this issue
again demonstrates how Abu Dhabu, Doha and
especially Dubai are easily outpacing their rivals in
Dubai is by far the biggest of the three, and was
roughly the same in terms of ASKs as Singapore
Changi and Hong Kong in 2011. Last year it put
some clear blue water between itself and the two
Asia-Pacific hubs, and in 2013 it has moved into a
different league. ✈
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European airlines are facing a double
whammy from the Gulf carriers --
they are siphoning off traffic and now
appear to be throwing cash at airlines
that would otherwise have gone to
the wall, thus distorting competition.
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