Report from the 48th AAPA Assembly of Presidents
25 - 26 November 2004
Taipei, Taiwan
by Martin Craigs
FSCs and LCCs Top the Agenda at AAPA Assembly of Presidents
I am pleased to report that our longstanding AFA colleague Andy Herdman stylishly kicked off (with great help from hosts China Airlines) a new era at the Association of Asia Pacific Airlines (AAPA) in Taipei last week.
The Forum were pleased to be invited for the third time to its annual assembly of the presidents of 17 of Asia's largest Full Service Carriers (FSC's). No sign of any dinosaur type legacy carrier behaviour at this event. Despite the onslaught of so many challenges in recent years, not least SARS and oil price strangulation, the AAPA representatives appeared bruised but not beaten.
Full details on the seven general resolutions agreed at the AAPA's AGM can be found on their web site www.aapairlines.org. They included predictable common concerns relating to travel advisories, war risk insurance, airport audits, decriminalisation of safety investigations, and cost effective security.
The Open Forum session on Friday morning was formally opened by President Chen Shui-bian of Taiwan who delivered a fifteen-minute speech on the importance of civil aviation to the Taiwan economy.
After the formal opening addresses the US Assistant Secretary of Transportation, Mr. Karan Bhatia also made a memorable speech on the benign effects civil air transport has on the economies and politics of the world. He was less comfortable responding to questions on the US government's interpretations of Open Skies or current aviation related issues at the WTO. Mr. Bhatia should, however, be applauded for trading his thanksgiving dinner for a slow roasting at AAPA.
A soft copy of his speech has been posted on the AFA website this week. It was, in all seriousness, a significant policy statement on the new Bush Administration's views on the Air Transport sector. Take a look and form your own opinion.
I could also comment at length on Peter Harbinson's brave late substitution as a speaker in place of Tony Fernandes. Tony was called to support his PM in Laos and Peter delivered an updated sermon on his well-worn theme of LCC incursions in Asia. If you have been at any or all of Peter's Low Cost Carrier (LCC) fests you will know the tune. As the high priest of the LCC faith Peter delivered a straight from the heart "I told you so" review but acknowledged there were limits to the "cannibalisation" that LCC's may inflict on FSC's.
Less digestible presentations on fuel price hedging, and war risk insurance were also delivered to the Open Forum.
Media and guests of the AAPA were also treated, on Friday to a matinee performance of the long running war movie "Product A vs. Product B" - otherwise known as the Airbus and Boeing presentations. Less combative touches were offered in presentations by Abacus, Taiwan Tourism and China Airlines.
The evening event started with a Taipei traffic ballet, four coaches, six motorcycle outriders and a wet stage. Suffice to say a good time was had by all. The end of event dinner was indeed a memorable and much appreciated spectacular held in the classic Grand Hotel.
China Airlines and the main sponsors Airbus and Boeing must be thanked for their world class hospitality and good humour. I trust the above provides some flavour of the occasion.
The 49th Assembly of AAPA airline presidents will be hosted by Cathay Pacific in Hong Kong in November 2005. Let's hope Disney stays on schedule to give next year's delegates another ride to remember.
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