Yesterday’s Routes Asia Strategy Forum attempted to highlight some of the key issues that are impacting the commercial aviation business across the entire Asian region. With a high profile list of speakers the content was specially developed to provide a unique insight into the business with informed moderators ensuring the key issues were not glossed over.
The HUB highlights the key quotes from yesterday's discussions ahead of the publication of a full report later this week.
Liu Jie, Vice Governor of People’s Government of Sichuan Province
“Western gateway hub construction will improve future, promote strong routes in a coordinated way.”
“By 2015 China will need a total fleet of 2,750 aircraft and 330 airports.”
“In 2011 Chinese airlines operated 443 international air routes linking 124 foreign cities, however, only 104 of those international routes were with Asia linking 29 cities which is less than 25% of the total.”
“China and Asia cover 30% of the world and three fifths of its population so the Asia market has high potential, especially for economic development in emerging markets.”
“All the governments in Asia should publish policies to promote network expansion and encourage airlines to open new international routes within Asia. In particular this support and favourable policies should be extended to less well developed economies so people there can have greater access to air transport.”
Pan Xiaojun, General Manager, Sichuan Province Airport Group
“We are building a large scale aviation hub which will serve as a transit for European–Asia routes, we enjoy unique geographical advantages, Chengdu is four hours from South Asia, South East Asia and is 6-10 hours reach from Europe.”
“By 2015 we will reach 45 ranking in the world for passengers and in the top 30 with 70 million by 2030.”
“Chengdu’s exports and imports reached $37.9 billion in 2011. Foreign investment reached $8 billion and 207 of the top 500 companies has a presence in the city.”
“Chengdu’s convention facilities mean it could become the domestic and international capital of conferences and conventions.”
Li Haiying, Secretary of the Part Committee of Sichuan Airlines Group Co and General Manager Sichuan Airlines:
“By 2015 our weekly primary flights will make up about a 65% share of total flights (expect in the high altitude airport flights).”
“Sichuan Airlines will launch services to Kashi, Ali, Xishangbanna, Lizh and Bangda.”
Andrew Parker, Senior Vice President – Public, International, Industry and Environmental Affairs, Emirates Airline:
“In our view Chengdu is an intermediate gateway like Dubai and different from European airports, the growth of the export market has led airline to use Chengdu as a hub.”
“The CAAC and Chinese government encourages airlines, if we get a strong team on the ground in Beijing and cities we wish to serve plus the research you are doing it quickly becomes apparent how significant these markets already are.”
“We are seeing a mix of emerging tourism demand, significant inbound business travellers and outbound exporters. For example, we went to the Giant Pandas centre today and 15,000 people will visit them today.”
“China has changed domestically as a market, there are now 650,000 seats domestically in Chengdu but only 4,000 seats heading West.”
“I think the appeal for Chinese to visit Dubai is significant, so are inbound opportunities. You need to get the mix and the distribution right.”
Glen Wedlock, GM Aeronautical Business Development, Auckland International Airport.
“Our first foray into secondary cities, because of the volume of a single market like Chengdu we can expect 50% year-on-year growth and up to 150% growth in other markets.”
“We are conscious that the airlines need to make money, we need to fill the cabin and look at premium traffic, we are looking to work with existing partners to utilise those to market this market, the next step is to know that one market is not the same as any other.”
Luo Yu, Vice General Manager, Chengdu Airlines:
“Chinese New Year is the most important traditional festival in China which offers an opportunity to reunite families. Therefore our users demands mean we have changed our schedule and provided different packages to meet those demands.”
“Usually travel agencies that have a good credit with consumers help us to build our business so it’s a win, win situation.”
“In our network decisions in the future I think another way out is the advantage of flexible strategies, realigning the network and increasing competitiveness, extend our product range.”
“We should do the marketing that is the grass roots to create the right products for the market, that is important.”
Chen Zhongwei, Director Chengdu Logisitics Office Chengdu Port Office
“In 2011 GDP hit 685.46 billion yuan, a 15.2% increase.”
“In 2011 we saw $6.5 billion of foreign investment, a 33.9% increase.”
“207 of the top 500 companies have offices in Chengdu”
“50% of global tablet computers and 50% of laptop production capacity is in Chengdu.”
“Inbound flights were up 52% in 2011.”
“Our target is to make Chengdu the fourth largest aviation hub after Beijing, Shanghai and Guangzhou and build a gateway to Europe and the Middle East in the West.”
Shaun Monnery, Executive Vice President, SkyGo:
“India has two halves, one half is the market, the other is the infrastructure.”
“It’s all about the market, this country [India] is awash with people who want to move, if airlines don’t have passengers we don’t have an aviation industry.”
“The need for new infrastructure is no different from the challenges the US faced 10 years ago.”
Rajeev Jain, President of Mumbai International Airport:
“49% investment by foreign companies - that may happen in the next week or so.”
“It maybe better to start a new airline rather than to invest in an airline that is in a bad shape, but we have yet to see, we have not yet seen foreign airlines coming in and turning things around.”
“The government has given funds to Air India to help them but we don’t know if it will all be spent in the next couple of years, we have yet to see if that is a correct move by the government.”
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