Asia Pacific airlines to meet on future direction of industry

The chief executive officers of major international airlines based in the Asia Pacific region are meeting in Cebu, central Philippines, on Nov. 14-15, to debate the future direction of the industry amid conflicting signals from the market.

The Association of Asia Pacific Airlines (AAPA) is hosting its 46th Assembly of Presidents at a time when traffic and load factors are extremely healthy, but fuel prices are climbing and political factors threaten to reverse the recent positive developments.

AAPA director general Richard Stirland said this year’s assembly "will serve as an important forum to discuss how far the carriers are down the road to recovery from last year’s disastrous events and what can be done to mitigate the impact of new security and insurance burdens, among other problems."

"The region’s aviation sector has certainly outpaced the rest of the world in recovering from last year’s disaster. Now we are faced with other challenges which we hope to get through with proper planning," said Stirland.

Avelino Zapanta, president and chief operating officer of this year’s host Philippine Airlines and chairman of the assembly, echoed the propitious timing of the event.

"The 46th Assembly of Presidents takes place at a time of great ferment in the airline industry worldwide. Recovery beckons but uncertainty lingers. This is an opportune time to take stock and discuss issues confronting us."

Participants to last year’s Assembly of Presidents held in Bali, Indonesia, a couple of months after Sept. 11, agreed that the impact of the tragedy need not be as severe in this part of the world. Thus, AAPA carriers were quite circumspect in their reduction of capacity, cutting routes and grounding of aircraft, enabling them to take advantage at short notice of the regrowth of traffic within the region and on European routes.

The latest figures released by the AAPA show that revenue passenger kilometers grew by 2.2 percent in August, while passenger numbers increased by 3.8 percent. This is in contrast to 10 percent to 12 percent declines in traffic for carriers based in the USA and Europe.

Stirland said: "Traffic within the region grew by four percent and on European routes by three percent. Unfortunately, transpacific routes have yet to recover."

The encouraging load factors were complemented by steady improvements in cargo traffic due to rising demand. From January to August, freight carried by AAPA members grew by 12 percent, compared to the same period last year.

The AAPA, formerly Orient Airlines Association, is a regional grouping of 17 commercial airlines formed in 1966 by Philippine Airlines, China Airlines, Korean Airlines and Malaysian Airlines.

The AAPA holds an annual Assembly of Presidents to discuss common issues affecting the region’s aviation industry. Chairmanship of the assembly is rotated among the host airlines.

Other members of AAPA include Air New Zealand, All Nippon Airways, Asiana Airlines, Cathay Pacific Airways, Dragonair, EVA Air, Garuda Indonesia, Japan Airlines, Qantas Airways, Royal Brunei Airlines, Singapore Airlines, Thai Airways and Vietnam Airlines.