A trusted source of Asia-Pacific commercial aviation news and analysis

JUNE 2018

Orient Aviation June 2018

Boeing Commercial Airplane president and CEO, Kevin McAllister, says everyone from the shop floor to the boardroom is making Boeing a better business

• THAI announces president after 18 month leadership vacuum

• Asia’s carriers take extra hit from rising fuel prices

• Technology part of the congestion cure

• INDUSTRY INSIGHT SPECIAL REPORT: New ATM challenge: the Drone boom


Cover Story

Building a smarter business

He is the executive vice president of The Boeing Company and president and chief executive officer of Boeing Commercial Airplanes (BCA), but Kevin McAllister has never forgotten the lessons he learnt from his childhood city of Bethlehem, Pennsylvania. Read More »


Main Story

Technology critical to congestion cure

When the leaders of the world’s airlines gather in Sydney this month for the 74th Annual General Meeting of the International Air Transport Association (IATA) a potential infrastructure crisis, particularly in the Asia-Pacific, will once again be an important part of the discussions - and understandably so. Read More »


Industry Insight Special Report

Drone industry booms across globe

Drone manufacturers and their customers are very confident there will be a significant increase in demand for drone services and they welcome a global code for safe operations in the sector, the world’s first comprehensive study of drone use has revealed. Read More »


News Backgrounder

Asia’s carriers take extra hit as fuel costs climb

To date this year, the average global jet fuel was US$83.40 a barrel, a sum that has added $39.3 billion to the industry’s collective operating costs. Read More »




News Backgrounder

Profits plummet in India as fuel prices rise

Profits at India’s commercial carriers are falling through the floor as oil prices rally. Read More »


News Backgrounder

Time to let go in subsidy war?

On the surface, it seemed clear cut. The World Trade Organization (WTO), in a landmark ruling last month, decided Airbus had received illegal government funding to develop its jets, costing rival Boeing sales. Read More »


News Backgrounder

“Big Three” bluster came to nothing

The U.S.-based Business Travel Coalition did not hold back when news broke last month that Washington and the United Arab Emirates (UAE) had shaken hands on a new Open Skies treaty that was not substantially different to previous accords. Read More »



THAI announces new president after lengthy leadership vacuum

After 18 months without a permanent leader, Thai Airways International (THAI) announced in May that Sumeth Damrongchaitham is the new president and CEO of the airline. Read More »



Japan Airlines new LCC too late for Olympics

Japan’s low-cost carrier industry took another step forward last month with the Japan Airlines (JAL) decision to establish a medium to long haul budget subsidiary by 2020. Read More »



Al Baker “disappointed” with ICAO response to Qatar blockade

Qatar Airways Group Chief Executive Akbar Al Baker has criticized the International Civil Aviation Organization (ICAO) for a “timid and disappointing” response to the blockade imposed on his country and airline by neighbouring Arab states, including Saudi Arabia, the United Arab Emirates and Egypt. Read More »



Australia and Netherlands say Russia liable for MH17 attack

Australian foreign minister, Julie Bishop, and Dutch foreign minister, Stef Blok, have jointly announced that “on the basis of conclusions of a Dutch investigation into the downing of Malaysia Airlines MH17, that their governments are now convinced Russia was responsible for the deployment of a Buk installation” that blew the aircraft and its 298 passengers and crew out of the sky on July 14, 2014. Read More »



SIA to absorb full service SilkAir after upgrade

Four will become three. That’s the surprise news from Singapore Airlines which has announced Singapore Airlines (SIA) group subsidiary, SilkAir, will be absorbed into the flagship carrier’s operations after a $100 million upgrade. Read More »


Industry Addendum

Qantas uses all-electric Telsa to tow B787

In a world first last month, Qantas Airways used an all-electric Tesla Model X P100D SUV to tow one of its new B787s on a remote taxiway at Melbourne Airport. Read More »


Industry Addendum

Airbus CyberSecurity joins EU research program on The Internet of Things

Airbus CyberSecurity will join several European partners in researching the interoperability and cybersecruity of The Internet of Things (IoT). Read More »


Industry Addendum

ST Engineering delivers healthy first quarter profit

Singapore Technologies Engineering has achieved higher year-on-year revenue and a net profit for its first fiscal quarter for 2018. Read More »


Industry Addendum

Aireon achieves sixth successful ADS-B launch

Aireon, which has recently added UK air services provider, NATS, as an investor, announced the sixth successful deployment of its space-based Automatic Dependent Surveillance-Broadcast (ADS-B) payload. Read More »


Industry Addendum

ARINC and GE Aviation sign flight analytics digital agreement

GE Aviation and ARINCDIRECT have agreed to provide flight operations quality assurance services (C-FOQA) based on GE’s Centreline service to customers. Read More »


Industry Addendum

GE Aviation and Avionica expanded partnership to joint venture

Miniaturised data and wireless equipment manufacturer, Avionica, and GE Aviation announced last month that GE had invested in the manufacturer and that the companies would expand their partnership to a joint venture. Read More »


Industry Addendum

Flexport receives US$100 million from SF Express to fund expansion

China’s leading courier company, SF Express, is investing US$100 million in software powered freight forwarder, Flexport. Read More »


Industry Addendum

ST Engineering adopts single brand to drive growth

ST Engineering will make a group wide transition of its subsidiaries to the master brand, ST Engineering, on June 1. Read More »


Industry Addendum

Sabre joins forces with Microsoft

Global technology provider, Sabre Corporation, has signed a long-term agreement with Microsoft with the goal of helping it better harness the power of its data. Read More »


Industry Addendum: Leasing

SMBC Aviation Capital and Ruili Airlines sign B737 Letter of Intent

SMBC Aviation Capital and Chinese carrier, Ruili Airlines, have signed a Letter of Intent for placement of two B737MAX 8 aircraft, the first commitment the carrier has negotiated with an aircraft lessor outside China. Read More »


Industry Addendum: Leasing

AirAsia shareholders approve Fly Leasing portfolio acquisition

AirAsia Group shareholders last month approved Fly Leasing Ltd’s (FLY)’s acquisition of 55 Airbus narrow bodies and seven CFM engines on operating lease from the Malaysian company. Read More »


Industry Addendum: Leasing

IBA forecasts engine lease market cannot support near term demand

At a May London conference, speakers from the IBA consultancy said the engine lease market will not be able to meet critical demand for spare engines and parts as hundreds of shop visits are ahead for CFM56-7B and 5B engines. Read More »


Industry Addendum: Leasing

TrueNoord seals GECAS deal for Mandarin Airlines E-190s

TrueNoord has completed the purchase of two E190s from fellow lessor GECAS, bringing the regional aircraft lessor’s E190 fleet to 17. Read More »


Industry Addendum: Briefly...

• Singapore Airlines’s (SIA) first Boeing 787-10 aircraft was converted to Mobil Jet Oil 387. Read More »



Technology can ease airport congestion

Airport infrastructure, or the lack of it, will be part of the discussion at the International Air Transport Association (IATA) Annual General Meeting and World Air Transport Summit in Sydney this month. Read More »