CAPA LCCs in North Asia Summit

Cebu, Philippines
24-25 Jun 2019

Tuesday 25 June 2019

Chairman’s Welcome
CAPA – Centre for Aviation, Chairman Emeritus, Peter Harbison
Start-Up Studio: An in-depth look at emerging LCCs
Rapid Fire Presentations from some of North Asia’s planned start-up airlines. Hear from some of the most promising new entrants set to take the industry by storm.

Session Host: CAPA - Centre for Aviation, Chief Analyst, Brendan Sobie
Aero K Airlines, Director of Strategic Communications, Yongduck Choi
Eznis Airways, CCO, Oyundelger Dagva [Download Presentation]
ZIPAIR, President, Shingo Nishida [Download Presentation]

Aircraft Developments: Long haul narrowbodies set to drive change in North Asia
New generation aircraft offer game-changing economics and range for LCCs. In the narrowbody space, several LCCs are now operating or have on order new generation narrowbody aircraft on long haul routes.

The introduction of long haul narrowbodies (A321neoLRs) in Japan in 2020 by carriers such as Peach and Jetstar Japan will drive interesting changes to the region.

• What examples of implementation of new aircraft types has been successful for LCCs around the world?
• What opportunities still exist for LCCs to tap into new aircraft types?
• Can LCCs compete with full service carriers?
• What new technology will assist LCCs in further growth?

Moderator: The Chinese University of Hong Kong, Assistant Professor, Jae Woon (June) Lee
Airbus, SVP Sales Japan, Jean-Pierre Stainnack
Boeing Commercial Airplanes, Executive Director Market Analysis, Wendy Sowers
Embraer, Marketing Director, Adam Young
T'way Air, Senior Vice President, Hyung Yi Kim

Coffee Break & Networking
How to attract LCCs to your airport – the art of collaboration
Airports increasing working in a highly collaborative fashion with LCCs to win and retain air services. How are LCCs different to say attracting a full service carrier or a carrier from a key growth market like China or India.

• What lessons can be learned from airlines and airports who have succeeded in this?
• How can airports service the evolving needs of LCCs?

Moderator: ASM, Senior Vice President, Tony Griffins

Mactan-Cebu International Airport Authority, General Manager and CEO, Atty. Steve Y. Dicdican
Philippines AirAsia, Head, Government Affairs & Policy, Desiree Bandal
Taoyuan International Airport, Director Corporate Development, Chungli Yu

The LCC Air Finance Outlook
As with the funding of any business, those providing any type of funding to LCCs will consider the business model/management, the quality of the corporate credit and any underlying assets to be financed. In each of these areas, financiers look at a wide range of factors.
In many ways, LCCs are no different from full service airlines in this respect. The LCC business model is now well established throughout the world and low cost operators are among some of the biggest airlines globally.

Nevertheless, it is still regarded to some extent as a newer model, and financiers will typically take a more rigorous approach when considering the provision of funds to start-up and younger airlines. Even where the model is not really very new, low cost operators often pursue higher growth rates, and this can also be a source of additional risk.

Perhaps because many low cost airlines typically have shorter track records and are less well capitalised, the share of the world LCC fleet that is leased is higher than for the total fleet of all airlines. In particular, LCCs make significant use of sale and leasebacks.

• Features need to be considered in funding new and established LCCs?
• Which funding models are most attractive to LCCs?
• What roles have the OEMs played in LCC expansion?
• Are markets large enough to support all the new orders?

Moderator: Korn Ferry, Senior Client Partner, Torbjorn Karlsson
Boeing Commercial Airplanes, Executive Director Market Analysis, Wendy Sowers
Development Bank of Japan, Head of EMEA, Asia Pacific and Investment, Yu Kimura
DVB Bank SE, SVP, Deputy Head Aviation Finance APAC, Christopher Turner

Chairman's Closing remarks
Lunch and End of Summit