Success for Kitakyushu LCC conference

89% of delegates attending the Centre for Asia Pacific Aviation's recent Second Annual North Asia Low Cost Airline Symposium in Kitakyushu, Japan, ranked the overall benefit to their company as ‘excellent’ or ‘good’.

Managing Director, Peter Harbison, said, “based on the excellent feedback we received in Japan, our conferences unit has once again proven its unique capability to assemble a compelling programme of high level speakers. Our formula of ‘by the industry – for the industry’ will next be on display in India in early October, where we anticipate a very strong industry and media response, given the proliferation of low cost airlines in the Indian marketplace”.

The Second Annual Indian Subcontinent Low Cost Airline Symposium in Mumbai on 6-7 October has already attracted speakers and delegates from every start-up airline (operating and proposed) in India, plus several full service carriers from India and the Middle East.

“The Indian Low Cost Airline Symposium will be the biggest ever assembly of airline CEOs in the region – it promises to be a thrilling event”, said Mr Harbison.

The following are a sample of highlights of the North Asia Low Cost Symposium:

- China Southern Airlines COO, Li Kun, announced that the carrier is “studying” the possibility of establishing a low cost subsidiary within 3 to 5 years.

- Macau Eagle Aviation Services CEO, Andrew Pyne, announced full details of the carrier's plans including a single-type, widebody aircraft fleet flying medium and long-haul services to unserved destinations. The carrier is targeting 45% lower costs than full service carriers, as a result of emphasis on direct distribution, single aircraft type, high aircraft utilisation, competitive charges at Macau Airport and charging for inflight catering.

- Norihiko Yamagata, Director General of Port of Kitakyushu, confirmed that the New Kitakyushu Airport is on track to open on 16 March 2006. Once completed it will represent an incredible engineering feat involving the creation of a reclaimed offshore island over 4km long. The airport, which plans to offer lower charges than existing hubs in Japan, and is able to operate 24 hours a day, will serve the 4th largest urban area in Japan.

- Starflyer Executive Director, Yasushi Muto, announced further details of the carrier's business plan, including the launch of services from the New Kitakyushu Airport in the second quarter of 2006. The company is targeting high yield corporate traffic, with an "emphasis on cabin comfort" and will operate up to three A320s initially.

-  Jeju Air, a South Korean LCC, confirmed plans to launch operations in June 2006, operating 60 daily services on Jeju-Seoul, Jeju-Busan, Seoul-Busan and Seoul-Yangyan routes, with a fleet of five new 74-seat Bombardier aircraft.

- David Huttner, former Head of Strategy, Virgin Blue Airlines, stated “there is no miracle low cost airline model. There is tremendous execution risk and 8 or 9 out of 10 start-ups will fail in the first year. That doesn't mean the model is wrong, it's usually the case that management doesn't understand the model”.

- Clark Air Base Executive Vice President, Victor Luciano, confirmed the Philippine Government has approved AirAsia to launch daily Macau-Clark service  using fifth freedom rights. The service, effective 17 October 2005, will be an extension of the Bangkok-Macau service. Tiger Airways will launch Clark-Macau service on 30 October 2005.

- Peter Harbison, stated that governments of North Asia need to “embrace deregulation” or the low cost revolution will “pass them by”. Economic development in regional centres would “accelerate rapidly” with low cost airline entry and there would be an opening up of new routes and increased services to smaller destinations, according to Mr Harbison, who called on regional governments to adopt a pro-active role in encouraging low cost airline development by easing restrictions on market access and establishing more conducive environments for growth.

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