The last decade has not been the easiest for Asian air transport. Accustomed to posting exceptional performances, Asian airlines have been confronted in recent years with an erosion of high-contribution traffic and competition from low-cost carriers, along with very serious financial difficulties that have led to major restructuring. Japan Airlines and Thai Airways International are the last two airlines in the region to implement a drastic rescue plan. The bankruptcy of Japan Airlines has sent shockwaves through aviation and business circles. Firstly because of the prestige that surrounds Japan Airlines, but also because the Japanese company is Asia's leading airline in terms of revenue. Before it, Malaysia Airlines, Indonesia's Garuda, China Eastern Airlines and Air India had also been forced to restructure their operations. Generally with success.<\/p>\n
The Asian model has been shaken by the scattering of the offer due to the emergence of new players. Most of the national airlines thought that the excellence of their service would protect them from the erosion of their traditional customer base. But they were wrong. This lack of foresight is linked to the corporate culture in Asia. A large number of airlines are under the yoke of a very heavy administration where the State often has the last word... not always in line with commercial realities. This explains the difficulties faced by some airlines who are unable to respond to the emergence of competition. \"My first concern when I was appointed Chairman of Thai Airways was to ensure that the government would give me the freedom to restructure the company,\" says Piyasvasti Amranand, the new Chairman and former Minister of Energy.<\/p>\n
Since the 1990s, passengers travelling in Asia have been spoilt for choice: first with the emergence of secondary airlines such as Asiana in Korea, Eva Air in Taiwan, Jet Airways in India and Hainan Airlines in China. Then there is the competition from Middle Eastern and Mediterranean airlines. Playing the global hub card in the Gulf to the full, these carriers have increased the number of routes between Europe and Asia, depriving Asia of some of its connecting traffic. Many European travellers now prefer to transit through Dubai, Doha or Istanbul on their way to Australia, Bali or China rather than stop off in Bangkok or Singapore. We connect some 60 European cities to ten or so Asian cities,\" explains Adnan Aykac, Director of Thailand and Indochina for Turkish Airlines. And we intend to launch flights to Kuala Lumpur, Manila and Ho Chi Minh City in 2010.<\/p>\n
The price factor has become an essential element in the customer's choice of flights to Asia. This alone explains the remarkable rise of low-cost airlines in Asia in the second half of the 2000s. Here again, the reaction of the traditional Asian carriers was rather late. In 2003, Richard Stirland, then director of the Association of Asia-Pacific Airlines (AAPA) representing the region's largest airlines, predicted that the low-cost phenomenon - then embodied solely by AirAsia - would fizzle out. \"Unlike Europe, distances between cities are long, there is little potential in secondary destinations and Asians are very attached to prestige in service and favour large aircraft\", he said at the time.<\/p>\n
Representing just 1.1 % of seat capacity in 2001, low-cost airlines accounted for 15.7 % of seat capacity in Asia in 2008. Kuala Lumpur is the airport with the most low-cost activity. More than a third of passengers at the Malaysian capital's airport travelled on a low-cost airline in 2008, compared with 23 % for Phuket, 19.1 % for Singapore and 14.5 % for Bangkok. With low-cost capacity worldwide averaging 22 % of seat capacity, we can bet that the market share of low-cost carriers will continue to grow in the coming years. Especially as Japan, Korea and Vietnam continue to deregulate their skies. For example, a new low-cost airport is starting operations 100 km from Tokyo this spring, Korean Air has launched JinAir, a low-cost subsidiary, while the AirAsia group has just obtained the go-ahead for a joint venture with VietJet.<\/p>\n
These upheavals are forcing most of the region's major carriers to review their development strategies. On the agenda: rationalisation of fleets and networks, integration of the most modern technologies for passenger handling and, of course, irreproachable service.<\/p>\n
On the fleet side first. Airbus estimates that over the next twenty years, airlines in the Asia-Pacific region will acquire some 8,000 aircraft to cope with growth that the European aircraft manufacturer estimates at 5.9 % per year between 2009 and 2028. At the recent Singapore Airshow, Airbus CEO John Leahy said that Asia should overtake Europe and the United States over the next twenty years, accounting for more than 30 % of global passenger traffic.<\/p>\n
Asia is therefore a driving force behind orders for new aircraft. Singapore Airlines, for example, is the launch airline for the Airbus A380, Indonesia's Lion Air was the first to bring Boeing 737-900s into service, while Japan's All Nippon Airways will be the first airline to bring the revolutionary Boeing 787-Dreamliner into service, probably in the last quarter of this year. With 55 aircraft to date, this is the largest order for this type of aircraft.<\/p>\n
Of the twenty airlines that have ordered 202 Airbus A380s, eight are in the Asia-Pacific region. This represents 71 firm orders, plus 19 options. After Singapore Airlines and Qantas, it will be Korean Air's turn to bring the A380 into service in 2010, followed by China Southern and Malaysia Airlines in 2011. The future Boeing 787 has found takers with 56 airlines, 18 of which are in the Asia-Pacific region.<\/p>\n
The most delicate aspect of the new strategy adopted by the major Asian airlines is the restructuring of their network. Overall, 2008 and 2009 saw a consolidation of routes, most often resulting in closures. \"It is better today to serve a limited number of destinations on our long-haul routes with an increased number of frequencies than to serve a multitude of cities without offering passengers the comfort of a daily flight\", explained Idris Jala, former CEO of Malaysia Airlines, at IATA's annual conference in June 2009. All Nippon Airways has thus withdrawn from Osaka-Kansai, retaining only regional flights. Over the last five years, Malaysia Airlines has closed a dozen long-haul routes in order to strengthen its position on key destinations such as Frankfurt, London and Paris. Faced with falling revenue\/passenger ratios, many airlines in the region have withdrawn from India and China, abandoning secondary routes in these countries.<\/p>\n
Long-haul is less affected than it might seem. Over the last three years, Thai Airways has inaugurated a route to Oslo, AirAsia X to London-Stansted, Malaysia Airlines to Istanbul, Hainan Airlines to Berlin and Eva Air to Paris. And 2010 is looking bright: Singapore Airlines is opening a route to Munich-Manchester in the spring; Cathay Pacific is linking Hong Kong to Milan-Malpensa and hopes to launch flights to Moscow this summer; China Airlines is opening three non-stop flights between Taipei and London-Heathrow; Garuda Indonesia is returning to Europe after a five-year absence with five flights a week between Amsterdam and Jakarta. In India, the government has just granted Kingfisher Airlines the right to serve the London-Delhi route, while Air India intends to open a new European hub on the India-US route.<\/p>\n
The Indian national carrier has already made its choice of Copenhagen, Dublin or Vienna. Its future membership of the Star Alliance could mean that it prefers Copenhagen or Vienna to an Irish hub. Jet Airways is present in London and Brussels, where it operates a hub between India and North America. But it remains cautious about future expansion until it joins an alliance. \"Expansion in Paris instead of Brussels, for example, would depend entirely on our choice of alliance and the synergies we could derive from it\", says Michel Simiaut, Jet Airways' Director for Southern Europe. In an uncertain economic climate, alliances play a key role as a shock absorber. Airlines see them as a means of increasing their global presence through the multiplication of code-share flights.<\/p>\n
Star Alliance includes the largest number of airlines in the Asia-Pacific region, with Air New Zealand, Air China, All Nippon Airways, Asiana (Korea), Shanghai Airlines, Singapore Airlines and Thai Airways. With 55.29 million seats offered each month in the Asia-Pacific region, Star is well ahead of its rivals Oneworld and Skyteam.<\/p>\n
Oneworld, for its part, has Cathay Pacific, Qantas and Japan Airlines in its wedding basket. The Japanese airline has finally confirmed that it wishes to remain in the alliance and should even emerge stronger, thanks in particular to new synergies with the other Oneworld members. Japan Airlines' decision is excellent news for Oneworld,\" explains Michael Blunt, Oneworld Vice President Corporate Communications. It not only strengthens the ties between American and Japan Airlines through their application for antitrust immunity. JAL also plans to intensify its cooperation with British Airways. The two airlines are currently studying how to obtain the approval of the authorities in Europe and Japan for a joint venture. Finnair is also discussing a code-share agreement. The partnership with Japan Airlines will give our alliance a foundation for other major projects.\" However, Oneworld continues to look to other potential partners. \"Our priorities are China and India\", says Michael Blunt. The alliance has been courting China Eastern Airlines, based in Shanghai, since 2006, and the last time it was approached was last autumn by the CEO of American Airlines. For the moment, the airline has given no indication of its choice. But the situation has changed recently following its merger with Shanghai Airlines, effective since February. The new giant - with a fleet of 331 aircraft and a network of 151 cities - already has one foot in Star Alliance thanks to Shanghai Airlines.<\/p>\n
Oneworld also indicates that it is in discussions with Kingfisher and Jet Airways in India, the two rising stars of air transport on the subcontinent. That leaves Malaysia Airlines for South-East Asia, the last major global airline with 14 million passengers a year and a network of 90 destinations. Except that Oneworld says it is satisfied with a presence that consists mainly of Cathay Pacific and Qantas flights to India, the former via Bangkok, the latter via Singapore. And Malaysia Airlines has been saying for the past two years that it is not interested in joining an alliance and that Oneworld is \"too restrictive!\" points out the airline's former CEO, Idris Jala, who continues: \"We prefer bilateral codeshare agreements that allow us to perfectly adjust our offer to actual demand.\" It is unlikely, however, that Oneworld will be able to ignore South-East Asia, an extremely dynamic market, for much longer.<\/p>\n
The future is easier to predict for the Skyteam alliance, and 2010 looks set to be a very Asian year... The alliance, led by Air France-KLM and Delta, currently only includes two carriers: China Southern and Korean Air. In June, it is expected to finally take up a position in South-East Asia with the entry of Vietnam Airlines. South-East Asia would then be meshed from the hubs of Hanoi and Ho Chi Minh City. We have just opened Hanoi-Rangoon and Hanoi-Shanghai routes, and we have increased our routes from France to nine flights a week during the summer, compared with just seven in 2009,\" says Mathieu Ripka, Marketing Director for Vietnam Airlines in France. Vietnam Airlines is now an important player for Skyteam, as we offer a high-level product and a very significant presence in the Indochinese region. The airline is also the main shareholder of Cambodia Angkor Air. The latter, based in Siem Reap and Phnom Penh, took off in July 2009 and plans to have a fleet of around ten aircraft by 2015 to cover a regional network.<\/p>\n
The Indonesian carrier Garuda is set to be added in 2011, and its integration is almost confirmed. Korean Air recently signed a codeshare agreement with the Indonesian carrier, while KLM is already cooperating with Garuda on Amsterdam-Indonesia routes. \"We are very pleased to support Garuda's application, as it is a long-standing partner in Asia, and we have been joined by Korean Air and Delta, who also support Garuda's entry into Skyteam,\" says KLM CEO Peter Hartman, adding that China Airlines (Taiwan) has also been mentioned as a potential member. But no confirmation has been made. Calculated in terms of monthly seat capacity, the integration of Vietnam Airlines and Garuda will result in an increase in the Skyteam offer of 25 % compared with summer 2009, i.e. a total of 34.6 million seats offered each month in the Asia-Pacific region. Skyteam will still need an Indian partner. But the alliance seems to be in no hurry. \"The Indian market is currently very difficult because it is unstable. For the moment, there are few opportunities to find a partner\", estimated Pierre Gourgeon, CEO of Air France-KLM, last November.<\/p>\n
The growing presence of Asian airlines in Europe is a godsend for European travellers, who appreciate Asian-style service. For years, Singapore Airlines and Cathay Pacific have been the benchmarks for top-quality in-flight services incorporating the latest technologies and offering a particularly attentive service.<\/p>\n
Singapore Airlines has pioneered the introduction of first-class suites, video-on-demand programmes and \u00e0 la carte meals that can be ordered in advance for business and first classes. In Hong Kong, Cathay Pacific has revolutionised hospitality with a lounge featuring a real dining room or noodle bar. Most of the other major carriers in the region have since adopted the highest standards of comfort. Malaysia Airlines, Air China, All Nippon Airways, JAL, Jet Airways and Korean Air all offer beds in first and business class or video on demand. More recently, ANA, JAL, Air New Zealand and Qantas have even introduced a premium economy class.<\/p>\n
But above all, there are still those famous little touches that will continue to give Asian airlines' in-flight services their letters of nobility for a long time to come. Like the slippers or masks to prevent irritated noses from the air conditioning offered by JAL and ANA to high-contribution passengers; or the satay prepared during the flight by Malaysia Airlines; or the fresh orchid distributed to all women flying on Thai Airways. All with a smile!<\/p>","protected":false},"excerpt":{"rendered":"
Hard hit by the crisis in 2009, Asian air transport is now back on the growth track, supported by demand from the economic giants of China, India and Indonesia. With airlines paying particular attention to passenger service.<\/p>","protected":false},"author":1,"featured_media":15101,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"type-darticle":[],"n_magazine":[],"class_list":["post-15099","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aerien","vapo-free"],"acf":[],"yoast_head":"\n