Association of Asia Pacific Airlines Regional Perspective Martin Eran-Tasker Technical Director Association of Asia Pacific Airlines Singapore Aviation Academy 29 – 30 August 2013

Overview AAPA Global mobility Asia Pacific Aviation Business conditions Growing demand Info share Closing thoughts

Serving the community and always open to new members AAPA Association of Asia Pacific Airlines Regional trade association Members include major international airlines based in Asia Pacific Open to all scheduled international airlines based in Asia Pacific region Committed to promoting sustainable growth of the aviation industry serving both passenger and freight needs Permanent secretariat headquartered in Kuala Lumpur, Malaysia Representation in Washington and Brussels Flight Operations Safety WG Cabin Safety WG Serving the community and always open to new members

Aviation: moving the world Air travel delivers global mobility 2,900 million passengers Carries 35% by value of global trade Wider social and economic benefits Outstanding safety record Source: ATAG

Asia Pacific Diverse geographic region Home to more than 4 billion people 62% of the world’s population Generates 30% of global GDP Wide range of income levels Dynamic economies delivering global growth Aviation widely recognised as a key contributor to economic and social development Political diversity remains challenging: need for multilateral cooperation

Asia Pacific Aviation US$175 billion revenue US$5.2 billion net profit 705 million passengers 493 million domestic 212 million international 16 million tonnes of cargo > 5000 aircraft Asia Pacific market share based on RPKs and FTKs % dom PAX = 70%, international = 30% Asia Pacific carriers overall market share: 25% of global passenger traffic 40% of global cargo traffic Data: Financials & Traffic: 2012 Estimates Source: Combined AAPA + non-AAPA airlines GMT+7 to GMT+12

Growing demand

Aspirational Demand for Air Travel Trips per capita Rising incomes, urbanisation, social development GDP per capita US$

The growing middle class Source: Airbus

World Traffic by airline domicile (RPK billions) Asia Pacific traffic will grow significantly World Traffic by airline domicile (RPK billions) Source: Airbus GMF2012-2031

Asia Pacific fleet expansion 2011 airplanes Source: Boeing CMO 2012 - 2031

Info Share

ICAO ASPAC Region 40 Contracting States and Administrations 1,207 commercial airports 359 airlines 5,090 aircraft in service representing 25% of Global fleet Projected to almost triple by 2032 40 air navigation service providers Air transport supports 6.1 million jobs Aviation Safety high priority Going forward maintaining status quo can only result in increasing the number of accidents and major incidents

US Commercial Aviation Safety Team (CAST) In 1998 CAST committed to the goal to reduce the commercial aviation fatality rate in the USA by 80% by 2008. In 2008 CAST reported it had reduced the fatality rate by 83% CAST success the result of the voluntary collaboration between the FAA and Industry by examining past accident data and developing and implementing Safety Enhancements (SE) CAST approach now is to be proactive and focus on examining emerging and changing risks to identify prevention strategies based on the analysis from incident data Greater emphasis on acquiring, sharing and analyzing aviation safety data (FOQA) on a voluntary basis CAST now committed to the goal of 50% from 2010 to 2025 and working with other government and industry partners

Regional activities - COSCAP Formed under the umbrella of ICAO’s Technical Co-operation Programme (TCP) Primary purpose to enhance flight safety in the region Ongoing effort to improve aviation safety in Asia through Needs assessment Supporting the establishment of a national safety framework Sharing of safety practices Provision of technical assistance and training for capacity building Implementation of safety enhancement initiatives

Regional activities – ICAO APAC RASG/ RAST RASG grouping of the regions regulators Established to address and implement regionally the Global Aviation Safety Plan / Global Aviation Safety Roadmap (GASP/GASR). Focus on ICAO priorities Runway safety, CFIT, LOC RAST joint regulator/ industry forum developing safety enhancements to address ICAO priorities Focus on the sharing of data and best practices

AAPA FOSWG &CaSWG Regional industry safety forum open to Asia Pacific International airlines (2X per year) Data management and analysis Benchmark airline safety performance Support capacity building within the region Promote the sharing of safety data and best practices Promote the sharing and implementation of best practices to enhance regional safety Data driven safety priorities: Wild life hazards, Infrastructure deficiencies, runway safety, CFIT, LOC, safety outreach efforts

Airline safety compliance approach Implemented safety, data management and reporting systems to be in compliance with national regulatory requirements that are based on ICAO Annexes (1,6,8,11,13, 14 and now 19) Reports safety in accordance with national requirements Tendency towards a reactive approach Limited data sharing Reactive response to incidents SMS requires a proactive/ interactive approach to addressing accident/ incidents Identifying and understanding the main hazards and risks to the airline operation a challenge

You cannot fix what you cannot measure Safety solutions cannot be fixed in isolation or by directive It requires the regions regulators and industry to collaborate and cooperate at national and regional level by: Gathering and analysing all types of safety data Sharing safety data and the information gained from the analysis Sharing of best practices, data analysis tools and techniques, data management Being data rich is not enough if it lacks direction, clear objectives and targets Assurance of data protection at national and regional level to avoid misuse Data protection critical, requires regional and global partnerships to realize an effective integrated safety management system.  

Challenges Asia Pacific diverse region has varying levels of capability and capacity among regulators and airlines Joint regulatory and industry consultations/ activities not the norm, although slowly changing Building “trust” between involved parties (government, regulator, airport, ANSP, airlines, senior management, politicians, unions and the travelling) Agreeing on common models and methodologies, and criteria for reporting and benchmarking Identifying an acceptable (independent) gatekeeper Requires long term investment and commitment in resources Overcoming, working with the Legal system

Closing Thoughts Aviation is a key part of everyday modern life and drives global economic and social development Aviation has an outstanding safety record To realize an effective integrated safety management system requires partnerships based on cooperation and collaboration Regional safety needs to be inclusive and requires regional thinking and regional solutions Effective safety management is “data driven” Safety outcome is key Have the confidence and optimism to share data and best practice in the future

www.aapairlines.org Association of Asia Pacific Airlines Unit 27-1, Level 27, Menara Prestige 1 Jalan Pinang 50450 Kuala Lumpur MALAYSIA Tel: +60 3 2162 1888 Fax: +60 3 2162 6888