CAPA Asia Aviation & Corporate Travel Summit

Singapore, Singapore
8-9 Nov 2018

Thursday 8 November 2018

Chairman's Welcome
CAPA - Centre for Aviation, Executive Chairman, Peter Harbison
SESSION 1: The Big Picture Asia Aviation Outlook
CAPA Asia Aviation Outlook
CAPA - Centre for Aviation, Executive Chairman, Peter Harbison [Download Presentation]
Airline CEO Keynote and Q&A
Japan Airlines, Representative Director, Chairman, Yoshiharu Ueki [Download Presentation]
Asia Aviation Outlook 2019 and beyond
Bringing together some of the most influential leaders in the travel industry this important panel will provide an outlook of the entire travel industry in 2018 and look forward to what lies ahead in 2019.

Moderator: CAPA - Centre for Aviation, Executive Chairman, Peter Harbison
  • AAPA, Director General, Andrew Herdman
  • BOC Aviation, MD & CEO, Robert Martin
  • Star Alliance, CEO, Jeffrey Goh
CAPA Membership Presentation
CAPA - Centre for Aviation, CCO, Derek Sadubin
Coffee Break & Networking
SESSION 2: Market Access and Distribution
11:15 Ownership and Control, the ASEAN community carrier and cross border JVs
The establishment and rapid expansion of cross-border JVs have transformed aviation in Southeast Asia over the last 15 years. There are now 11 cross-border JVs operating in six Southeast Asian countries. Several new JVs are planned or are under consideration.

However, it is questionable whether more JVs are needed. The six main ASEAN markets that have JVs are relatively saturated and the remaining four markets are relatively small. The introduction of ASEAN open skies, which has opened up the regional international market to any Southeast Asian airline regardless of domicile, also provides potential expansion opportunities for airline groups in Southeast Asia without having to set new cross-border affiliates.

The cross-border JV model enabled ambitious airline groups to circumvent airline ownership regulations and expand rapidly throughout Southeast Asia prior to open skies. The model remains necessary for accessing new domestic markets since open skies does not permit foreign airlines to operate domestic services. But domestic competition is already intense and at times irrational, since Southeast Asian airlines have historically prioritised strategic expansion and market share over profitability.Meanwhile there have been calls for the creation of an ASEAN community carrier - where ownership and control restrictions are removed, circumventing the requirement that majority ownership and control resides with nationals of that country’s airline. As part of this, ASEAN member states would recognise community carriers designated to operate in each other’s countries. The real kicker would be amending air service agreements with non-ASEAN countries to recognise these airlines.
•  Why has the cross-border JV model been so successful in Southeast Asia?
•  What are the prospects for more JVs by Southeast Asian airline groups - within the region and outside
•  Is Myanmar an attractive market for a potential cross-border JV?
•  Can Vietnam support more JVs?
•  With the introduction of ASEAN open skies are cross-border JVs still necessary?
•  Why haven’t airlines taken advantage of open skies to launch fifth freedom routes?
•  How will the latest developments on the EU-ASEAN front, such as the finalisation of the EU-ASEAN air service agreements, affect the aviation community at the global level?
•  Will ownership and control and community carrier issues prove an anathema or way forward for the sustainability of ASEAN member carriers?

Moderator: National University of Singapore, Professor of Aviation Law, Alan Tan
 [Download Presentation]
•  AirAsia, Chief Global Affairs Officer, Juergen Keitel
•  CAPA - Centre for Aviation
, Chief Analyst, Brendan Sobie

•  Malindo Airways, Senior General Manager - Legal, HR & Corporate Affairs, Siva Kannan
Watson Farley & Williams
Partner, Alan Polivnick
12:00 Successfully delivering IATA's NDC 2020
Travelport, Global Head of New Distribution, Ian Heywood
12:15 Distribution gamechangers: NDC - adapt or perish?

Legacy distribution systems have for decades presented airlines with the twin problems of high costs and product commoditisation. In efforts to address these issues, a handful of carriers in Europe, and now Asia Pacific, have invested heavily into establishing their own API channels with agents, while the concurrent push by IATA for airlines to implement the NDC standard has encouraged the industry to adopt a retail focused approach to distribution. The GDS will also need to evolve in order to remain relevant and to compete effectively against other intermediaries and aggregators such as metasearch companies (some of which now have direct booking capabilities), as well as digital behemoths such as Amazon, Google, and Facebook - to gain a slice of the pie.

But as airlines work on enhancing their retail offering and improving their merchandising capability via both direct and indirect channels, a resounding message from industry players is that airlines need to consider the importance of mobile and messaging platforms, which are slowly replacing the desktop as the preferred interface for researching and booking travel.

•  Is this increasingly fragmented and complex commercial and technological distribution landscape sustainable? How will business models evolve in response? Is there a need for a direct connect aggregator?
•  Should airlines build lots of direct connects or revert back to lean, centralised distribution channels?
•  Who is going to be offering services to bridge the gap between airlines/aggregators that are NDC compliant and those that aren’t? Will it be the GDS and IT providers, other airlines or speciality providers?
•  How are newer intermediaries adding value to airline distribution?
•  How do airlines enhance their digital shopfront? Are airlines over-emphasising the importance of airline.com over mobile messaging platforms and bot technologies?

Moderator: Solutionz, VP Global Growth Partnerships & Alliances, Umesh Nair
•  Amadeus, Regional Director, APAC, Kai Gerrit Jacobsen
• Singapore Airlines
SVP Sales & Marketing, Campbell Wilson
• Skyscanner , Commercial Director, Gavin Harris
•  Travelport
, Vice President Asia Pacific, Air Partners, Chris Ramm

SESSION 2: The Corporate Travel Outlook for Air and Technology

Asia aviation outlook for corporate travel
•  The growing premium economy and business class capacity, and its impact on economy. Is premium seating drawing people up from economy or diluting the premium cabin?
•  Ancillaries: What are airlines offering corporate clients? Preferred seating, baggage, lounge, boarding processes.
•  An update on airfares: The impact of rising fuel costs and Long Haul Low Cost.
•  Airport capacity: Can corporate travellers continue to expect crippling delays around Asia?

Moderator: CAPA - Centre for Aviation, Executive Chairman, Peter Harbison
• Corning, Asia Strategic Sourcing Manager, Travel & Professional Services, Peter Koh

• Corporate Travel Management, General Manager, Eugene Tan

•  Carlson Wagonlit Travel, Senior Director, Multinational Sales, APAC, Akshay Kapoor
•  Japan Airlines, Vice President Products & Services Planning, Akira Mitsumasu


Modern technologies and game changers: What's here, now - and what's over the fence?
Technology continues to drive the corporate travel management industry with new and promising tools set to shake-up or change the industry completely. Whether it be enhancing the traveller experience or driving compliance, innovation is the key to the future.

From AI, to chatbots, to big data and all the buzzwords in between, let’s take a look at the new generation of technology innovations taking the world by storm.

Moderator: SAP Concur, Vice President, Head of Travel APAC, Carl Jones
• Amazon Web Services, Head, Worldwide Business Development, Travel, Massimo Morin

• Booking.com, APAC Area Manager Booking.com for Business, Matteo Ciccalè 
• Caravelo, Chief Commercial Officer, Jonathan Newman

• Rio Tinto, Global Leader Travel and Expense, Michael Molloy

12:40 Virtual Payments Overview
WEX Asia, Commercial Director, Richard Cogswell [Download Presentation]
Lunch Break & Networking
SESSION 3: Aviation Infrastructure - critical to Asia’s growth and development
Aviation's role in China's Belt and Road Initiative
The Belt and Road Initiative (BRI) is a development strategy put forward by the Chinese government that focuses on connectivity and cooperation between Eurasian countries, led by the People’s Republic of China, the land-based Silk Road Economic Belt (SREB) and the ocean-routing Maritime Silk Road (MSR).
BRI essentially follows in concept the old Silk Road, a trading route linking East Asia with Europe and other regions along the way. As trading links are re-established and expanded, the One Belt seeks to accelerate and enhance the natural trend. China is helping fund much of the infrastructural development of the new “road”, either directly or through loans, and the geographic scope of the road extends southwards into the Middle East and Africa.
There is a natural presumption that enhancing trade routes will be accompanied by a liberal access market regime. The strategy has not attracted a great deal of attention in aviation terms, but it would seem likely that market access principles will filter down into the aviation sector. This panel takes a high level look at current and future potential impacts for airlines, Chinese and non-Chinese.

•  What are the implications for airlines of China’s Belt and Road plan?
•  How will China’s Belt and Road strategy affect the aviation market – in both the short and long term?
•  What is in the next Five Year Plan for Belt and Road?
•  Are China’s airlines adapting their strategies to align with the “road”? 

Moderator: AAPA,
Director General, Andrew Herdman

•  China Southern Airlines
Executive Vice President, Wensheng Han
•  Rockwood,  Consultant (former SriLankan Airlines CEO), Suren Ratwatte
•  Swinburne University of Technology
Senior Lecturer, Research Director, Chrystal Zhang
14:50 Aviation Infrastructure perspective:
Where to next with airport ground access?

Historically, most of the world's largest airports have relied heavily on road-based transport for customer access and egress. The private car (both park and pick up/drop off) and taxi have performed most of this task.
However, this model is being disrupted. Ride share operators took everyone by surprise, capturing a material share of the taxi market and creating a range of challenges for airports (i.e. provision of infrastructure and ground transport revenue impacts). It will only get more complicated with the growth of pooled ride share, connected and autonomous vehicles and aerial taxis.

• How will ground access mode shares change over time and what will be the impact on airport ground transport, aviation and travel revenues?
•  What does it mean for the future provision of ground transport infrastructure and services?
•  Should airports invest in mass transit or other high occupancy solutions?
•  What is the role of the airport in the ground transport customer experience?
•  What are the threats and opportunities presented by disruption in ground transport?
•  How do airports manage trade-offs between operational efficiency, ground transport revenues and social licence considerations?

L.E.K. Consulting, Partner, Mark Streeting [Download Presentation]
SESSION 3: The outlook for Accommodation and Payments
14:05 The accommodation outlook for the Asian region - what is the supply/demand balance for the year ahead?
STR, Regional Manager, Southeast Asia, Bernard Kee [Download Presentation]
14:20 Workshop: Room With a View
A look at how various hotel trends and practices such as M&A and consolidation, Last Room Availability (LRA) rates and dynamic pricing, and loyalty programs are expected to impact corporate hotel programs in 2019.

Facilitators: Carlson Wagonlit Travel,  Senior Director, Multinational Sales, Asia Pacific, Akshay Kapoor & RoomIt by CWT, Vice President Sales, Veronique Lescaut [Download Presentation]
Coffee Break & Networking
SESSION 4: Changing Technology and Equipment
The future is here: leveraging AI and new technologies for greater customer service
The digital economy has transformed consumer expectations around the way they research, purchase and experience the airline product. As a result airlines need to work hard to differentiate their product offering and deliver a personalised and seamless experience for customers throughout the entire travel process. This involves a shift in mindset, where airlines need to think of themselves as digital companies rather than just transportation companies enabling passengers to get from A to B. Whether it’s using data to create tailored ancillary offers, implementing enhanced merchandising capability that allows for more cross selling and upselling or introducing virtual assistants to answer simple customer queries, airlines and airports that invest in digital technologies stand to gain from a more engaged and loyal customer base, unlocking top line revenue opportunities and improving efficiencies in the process.
  • Putting the framework in place first - deciding on an airline’s digital strategy
  • How can airlines and airports turn big data into actionable insights that intelligently understands and delights the customer (and enhances revenue)?
  • How can each player work together to personalise and enhance the traveller journey?
  • What steps need to be taken to offer holistic, end to end travel distribution experiences?
  • What are the opportunities and implications of AI and robotics? What are some real world applications of AI and how will they impact the future of the aviation industry, from both a customer service and operational viewpoint?
  • How are airlines embracing the digitalisation process and enabling passengers to be connected while in the air? Where to next for inflight connectivity and WiFi?

Moderator: ICF International, Principal, Daniel Galpin
  • Bluebox Aviation Systems, CEO, Kevin Clark
  • Caravelo, Chief Commercial Officer, Jonathan Newman
  • Inmarsat, Regional Director APAC, Chris Rogerson
  • SITAONAIR, Vice President Asia Pacific, Katrina Korzenowski
  • Spring Airlines, General Manager of IT, Zhenyuan Zhang
New generation aircraft and the reshaping of route economics

New generation aircraft offer game-changing economics and range for LCCs and FSCs. In the narrowbody space, several LCCs are now operating new generation narrowbody aircraft on long haul routes and disrupting the dominance of the immunised JVs.

However, with the exception of Jetstar, Asian LCCs have not yet fully taken advantage of the range of new aircraft technology. Congested airports with slot constraints and a low yield environment may dissuade long haul low cost narrowbody operations in Asia.

But Asian FSCs have been more amenable to adopting the new aircraft technology and have introduced product innovations such as lie flat business seats to maintain their full service offering. Philippine Airlines is using A321neos on flights of up to eight hours, opening up new markets in Australia and India that were previously not viable and Air Astana plans to begin operating the A321neoLR on some of its existing Kazakhstan-East Asia routes in 2019, replacing 757s. Both carriers offer lie flat business seats.

Meanwhile new generation widebodies such as the 787 and A350 have changed the operating economics of competitive ultra long haul markets. Although there are still high costs and challenges associated with operating ultra long haul routes, the newer generation aircraft present a much more profitable proposition compared with original generation ultra long haul aircraft. This could also impact existing hubs and sixth freedom operators as onestops decline and new ultra long haul city pairs open up.

  • Will Asian LCCs follow European LCCs in using new generation narrowbody aircraft on long haul routes
  • Will lie flat business class seats on full service narrowbody operators become more mainstream?
  • Is there still a market for one-stop flights over long haul markets? Will sixth freedom operators suffer?
  • How much reliance is there on premium traffic to make ultra long haul routes sustainable?
  • Can fuel efficient ultra long haul aircraft overcome the inherent cost challenges of ultra long haul routes?
  • How will airlines manage and react to a possible projected downturn in passenger demand coinciding with the expected peak period for OEM deliveries?

Moderator: Cebu Pacific Air, Board Advisor, Garry Kingshott
  • Bombardier Commercial Aircraft, Director - India & South Asia, Ajay Mehra
  • flyadeal, CEO, Con Korfiatis
  • Spring Airlines, President, Zhijie Wang
Close of Day 1
Pre-Dinner Drinks
Gala Dinner and CAPA Aviation Awards for Excellence
Hosted by Travelport
Unable to join us for the day sessions? Purchase a ticket to our Aviation Awards for Excellence Gala Dinner here.