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Aviation Industry Environment Updates

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					Give Wings to Your
Dreams
(Quoted from Internship at IATA)



           Lecturer : Edwin C.M. Lee
                      Air Macau Co., Ltd.
                     edwinlee@airmacau.com.mo

                   3rd November 2005
                   National Chen-Kung University

                                             1
Lecture Outline
1. Self-Introduction
2. Airline Industry Environment Updates
3. A Brief Introduction of the Program of
    “Airline Operation & Management”
4. Your Career Challenges in Today’s
    Highly Competitive World
5. Q & A


                                            2
Self-introduction
Previous Positions in Airline Industry

 May 1974
  Joined Cathay Pacific as Traffic Officer
 May 1990 - Jun.1996
  GM of Dragonair GSA in Taiwan
 Jul. 1996 – Jan. 1999
  Area Manager of Dragonair in Taiwan

                                             3
Self-introduction
Previous Positions in Airlines Industry
 Feb. 1999 – Oct. 2000
  President, TransAsia Airways Co., Ltd.
 Oct. 2000 – Mar. 2002
  GM of American Airline GSA in Taiwan
 Mar. 2002 - present
  GM of Air Macau in Taiwan
  Deputy Vice President, Commercial
  Air Macau Company Limited

                                           4
2. Airline Industry
   Environment Updates

   Passenger Numbers recorded at
    1.8 billion in 2004

   IATA forecasted a 6% growth
    per year for both Passenger &
    Cargo for 2004 - 2008
                                    5
    IATA Statistics showed 8.3% RPK
      growth between Jan - Aug 2005

 RPK (Revenue Passenger Kilometres)
  - measures actual passenger traffic
 ASK (Available Seat Kilometres)
  - measures available passenger capacity
 PLF (Passenger Load Factor)
  - % of ASK used
                                            6
 FTK (Freight Tonne Kilometres)
   - measures actual freight traffic
 ATK (Available Tonne Kilometres)
   - measures available total capacity
     combining passenger & cargo
 IATA (International Air Transport
  Association)
   - represents 265 airlines comprising 94%
     of international scheduled air traffic.
     The IATA Billings & Settlement Plan
     operates in 71 countries for 390 airlines
                                                 7
   The airline industry recorded USD36 billion
    “LOSS” during 2001 - 2004 of which USD32
    billion suffered by North America

   IATA estimates “industry loss” in 2005 at
    USD7.4 billion
     Europe       :   breakeven
     Asia-Pacific :   earn about USD1 billion
     North America:   loss expected to exceed
                       USD8 billion

                                                 8
Factors due to :

 Terror Attack since 911 in 2001
 War on Iraq
 SARS
 Skyrocketing Fuel Price
 Potential Outbreak of Avian Influenza
  (Bird Flu)

                                          9
Comparison of Fuel Price (2003 - 2005)

 USD 44 billion in 2003
  (at average of USD29/barrel in Brent)
 USD 63 billion in 2004
  (at average of USD38/barrel in Brent)
 USD 97 billion in 2005
  (at average of USD57/barrel in Brent)

                                          10
   Refinery margin for jet fuel increased from
    USD6 per barrel in 2003 to USD17 (present
    fuel bill)

   Positive attitude : “People in Aviation
    Industry is always Optimistic and Prepared
    for Challenges”


                                              11
 Flight   Safety
 Tragically 663 people lost their lives in over
 1.6 billion passengers in 2004. Similar
 number to 1945, the industry carried only 9
 million passengers.


 CostEfficiency is the Challenge for
 Airline Industry Ahead
 IATA implemented:
 - Simplifying the Business Campaign
 - Fuel Action Plan Campaign
                                              12
IATA -
Simplifying the Business Campaign:

 100% E-Ticketing by 2007
 Common use self-service kiosk for check-
  in
 Radio frequency identification for baggage
  management

                                               13
IATA -
Fuel Action Plan Campaign:
 Realignment of inefficient routes
 Continuing effective fuel hedging
 One engine taxi, reducing aircraft weight
  etc.

    Each 1% fuel saving can lower fuel cost by
             USD700 million per year

                                                 14
3. Airline Operation &
   Management Program
 Purpose of Training
 Course objective & contents
 TQM Workshop & Facilitator
 Refresh & self-renewal of the program
 Choose 10 reference books, 10 websites as
  a start

                                              15
Your key weak point is far to reach a
 level of good command in English.
 Bear in mind there is no short cut to
        improve your English




                                         16
4. Your Career Challenges
   in Today’s Highly
   Competitive World

   What I learned from “Swire”
3 Golden Principles:
                         Skills
 Skills
                       Knowledge
 Knowledge
                         Value
 Value

                                   17
Skills:

 PC and IT related
 Language
 Planning & Organizing
 Communication & Presentation
 People



                                 18
Knowledge:

 Common Sense
 Technical
 Logistic Thinking & Judgement
 Literature & Art
 Health Management



                                  19
Value:

 Self-discipline
 Take long-term view
 Be fair to us as well as to others
 We are conservative but proactive &
  creative
 People is our most valuable asset

                                        20
5. Conclusions
 Winning Markets Through
  Strategic Planning

  There are five types of people :
  1) Those who make things happen ;
  2)   Those who think they make things happen ;
  3)   Those who watch things happen ;
  4)   Those who wonder what happened ;
  5)   Those that did not know that anything
       had happened.

                                                   21
Thank You !

~Q&A~


              22

				
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