Oriental airlines are finding strength in unity
Paul Lewis/BRISBANE
The Orient Airline Association (OAA) has been in existence for some 40 years, but only in the past 24 months has it begun to emerge from relative obscurity. The regional body is becoming increasingly vocal on issues which affect its membership and, in the process, is winning international recognition as a trade body with which to be reckoned.
The OAA was for a long time dismissed as little more than a gentlemen's book-keeping club, but, under the stewardship of its combative and, at times, outspoken director-general, Richard Stirland, it has quickly shed this image. With the International Air Transport Association regarded by many as too Eurocentric, many regional carriers are now looking to the OAA for better representation.
"It is demonstrable that the OAA has been much more active and involved, not only in its own region, but also in dealing with the authorities in the North American and European market, and we believe the level of professionalism has been raised," says outgoing OAA chairman and Qantas managing director James Strong.
membership grows
Membership has now expanded to 17 airlines with the admission of Ansett Australia and, although small in number, its collective clout is considerable. Its ranks include some of the world's largest and most profitable players, such as Cathay Pacific Airways, Japan Airlines and Singapore Airlines (SIA). Combined revenue for 1995/6 totalled more than $53.3 billion and, with all but four carriers profitable, they produced net earnings of $1.8 billion.
As a sign of the OAA's new-found sense of purpose and direction, there was no shortage of issues for its membership to sink their teeth into at the association's 40th Assembly of Presidents in Brisbane, Australia, in November. With carriers across the region continuing to battle rising costs, 1995's 22% increase in airport user and overflight charges was high on the agenda.
Of particular concern was a 10.8% increase in aeronautical charges announced by Australia's soon-to-be-privatised Federal Airports Corporation (FAC) and a possibly even higher hike in landing and parking fees at Hong Kong's new Chek Lap Kok (CLK) Airport. The OAA is now throwing its weight behind the protests of local Australian operators and "-will be writing to the minister," says Stirland.
While many view any action against the FAC as a little belated, the OAA has been quick to draw a line in the sand to "suggestions" by senior Hong Kong Airport Authority officials that CLK's charges will be twice those of the existing Kai Tak Airport. Such an increase would put CLK's charges on a par with Japan's Narita or Kansai airports.
"A doubling of these charges is clearly a major blow for all carriers operating there. We've formally written to the [Hong Kong Government's] Secretary of Economic Services and registered our complaint formally as an airline, and the OAA is taking a pro-active position," states Cathay Pacific Airways managing director Rod Eddington.
The UK Government's decision to lower permissible noise levels at London's three airports has drawn a strong response from the OAA, which it argues unfairly penalises long-range Asia-Pacific flights. Airlines operating fully laden Stage 3-compliant Boeing 747-400s are unlikely to fully meet with the new 87dBA night-time noise level and will face ú1,000 ($1,640) fines per infraction.
"Airlines will have two choices: either to limit their loads and lose money, or to exceed the noise limits and pay fines," complains Strong. He adds: "To come out with set criteria for aircraft noise which defy the current operating conditions seems totally illogical." The OAA has now joined with IATA to seek a judicial review of the increase.
Other recent OAA activity has been directed towards fighting the imposition by the USA of extra-territorial law, combating airline documentation fraud, improving airline-revenue management and volcanic-ash advisory operations. With more than 1,156 aircraft operated by OAA members, including 382 Boeing 747s, the Association also initiated talks with manufacturers to lower the price of parts through bulk purchases.
chinese wall
Progress in other areas is proceeding at a slower pace. The OAA's long-running effort to persuade Chinese capital Beijing to allow its three major carriers (Air China, China Southern and China Eastern Airlines) to join has so far met with no success. "It's a subject of sovereignty," explains Stirland, "they have a misconception that they cannot be a member of an organisation in which Taiwan's China Airlines and EVA Airways are also members."
The OAA also appears further away than ever from formulating a common approach to the liberalisation of air rights. Opinions within the organisation vary widely between those that support the USA's recent Asian open-skies initiative, such as Singapore.
"An association can only act in accordance with the interests of its members and, if at this stage it is not possible to get a view anything like unanimous, it would be against the interests of the organisation to go down that path," suggests the OAA's Strong.
To reflect the OAA's more pro-active stance and broadening membership, the body has chosen to change its name in 1997 to the Association of Asia-Pacific Airlines. For some, the term Orient was too readily associated with colonialism and perhaps more in tune with 19th century steam travel than with the jet age. Furthermore, adds SIA deputy chairman Dr, Cheong Choong Kong with a wry smile, half of the OAA's existing executive committee "-don't look oriental at all".
Source: Flight International
