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JUNE 2012 | VOL. 16, NO. 3 | w w w. p a x- i n t l . c o m

N E W S A N D A N A LY S I S F O R T H E PA S S E N G E R S E R V I C E S E X E C U T I V E

APOT.ASIA FORUM 2012

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APOT WELCOME p. LETTER

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AAPA INTERVIEW p.

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KOREAN AIR A380 p.

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SUPPLIER SPOTLIGHT p.


A taste of the world

53 destinations worldwide Servair brings you a taste of the world – a taste journey into four continents for our airline, company and group clients. What’s more, we prioritise great service and the respect of local specificity in order to better meet our clients’ needs. Finally, we offer our clients the highest possible quality professional restaurant and airport standards, see we meet their service expectations.

www.servair.fr


EDITOR’S LETTER

PAX International 26 Pearl Street, Mississauga, Ontario L5M 1X2, Canada Tel: (1 905) 821-3344; Fax: (1 905) 821-2777 website: www.pax-intl.com

PUBLISHER Aijaz Khan E-mail: aijaz@globalmarketingcom.ca

EDITORIAL OFFICES

Our digital summer or many people, a traditional preparation for summer has been to start a diet and exercise regime so they can look their best through a warm, sunny and all too brief season. It is a time to challenge abilities and take up new hobbies or activities. PAX International is planning just that with our summer issue, which will be distributed via the Internet and available digitally to thousands of subscribers of our e-newsletter and visitors to our website. Other changes in our digital programs are also in the works, and you’ll be seeing those in the months ahead. An electronic magazine opens up an entirely new way of presenting the news and featured coverage. Opportunities for reader feedback, video and new chances for advertisers to get their message to the readers all can be done in this format. No doubt many of our readers receive a growing amount of industry information in this way. Summers are a busy time for travel, but often a slow time for industry events. Venues for bonus distribution are fewer. We feel that

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by sending out an electronic version of the July/August issue, we can continue our reach through the summer, staying in contact with our readers in a new and exciting way. A visit to the company website will reveal several changes in our three duty free publications. They are updated much more frequently, as news happens. We also plan to do this and more on the PAX International website www.pax-intl.com. We’ll be hitting the ground running with this new issue immediately after this year’s APOT.Asia event in Incheon. We’re asking you, our readers, to come along as we stretch our legs and get in shape with the launch of our summer electronic issue. As always, feedback and suggestions for coverage will be given maximum weight. We look forward to the next several weeks when we test our abilities and plan an interesting few weeks looking out at a new horizon on a long summer day Rick Lundstrom Editor-in-Chief, PAX International

Rick Lundstrom, Editor in Chief PAX International 723 Jefferson Street, NE Minneapolis, MN 55413, USA Tel: (1 612) 378-0862 Fax: (1 612) 378-0852 E-mail: rick@pax-intl.com Maryann Simson, Managing Editor Tel: (1 905) 821-3344 x31 E-mail: maryann@pax-intl.com Lauren Brunetti, Associate Editor Tel: (1 905) 821-3344 x21 E-mail: lauren@pax-intl.com

A R T D E PA R T M E N T Patrick Balanquit, Art Director E-mail: patrick@globalmaketingcom.ca

ADVERTISING OFFICES Deepa J, Subscription & Conference Manager Tel: (1 905) 821-3344 x35 Fax: (1 905) 821-2777 E-mail: deepa@globalmarketingcom.ca PAX International is published six times a year (January/February, March/April, May, June/July/August, September/October, November/December) by PAX International, 26 Pearl Street, Mississauga, Ontario L5M 1X2, Canada. International Distribution. Subscriptions: $200 for one year; $300 for two years; $400 for three years. Art and photographs will not be returned unless accompanied by return postage. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or editor. June 2012, Vol. 16, No. 3. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © PAX International magazine


JUNE 2012 | VOL. 16, NO. 3

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Contents REGIONAL REPORT 8 WelcoMe to Korea! APOT.Asia Forum promises education and networking with a twist

14 continental shift PAX International recently caught up with Mr. Andrew Herdman, Director General of the Association of Asia Pacific Airlines, who discussed the mission of the AAPA and offered some exceptional insight into the region’s passenger and cargo aviation sectors

16 a business linK The arrival of Korean Air’s A380 to Frankfurt in March is an important connection between two cities that have strong commercial ties

18 paying a preMiuM Asia/Pacific airlines are stepping up with their ways of defining a Premium Economy experience that is evolving around the world

20 What’s in a naMe? If the name is dnata, it is a Dubai based subsidiary of Emirates whose airline catering influence is increasing in places like Singapore, where the former CIAS facility now carries the company name

CATERING REPORT 21 a taste of indonesia Aerofood ACS is poised for steady growth as Indonesia’s aviation industry takes off

D E PA R T M E N T S 3 EDITOR’S COMMENTS 9 NEWS 12 NEW FACES, NEW PLACES 46 WHAT’S HOT 50 ASSOCIATION NEWS 50 ADVERTISER INDEX 50 CALENDAR

“OVERALL, ASIAN AIRLINES ARE CARRYING ABOUT 25% OF GLOBAL PASSENGER TRAFFIC, SO THEY ARE COMPARABLE IN SIZE TO THE GROUPINGS OF US OR EUROPEAN CARRIERS” Andrew Herdman, Director General of the Association of Asia Pacific Airline

16 22 Winds of change PAX International looks at how three smaller caterers leverage a passion and perfectionism to keep Asian airlines and passengers happy

SUPPLIERS FOCUS 26 fun is universal Australian creative product agency Buzz talks design, inspiration and character in the Asia Pacific Region and the aviation world at large

28 an asian approach Suppliers discuss how and why they are targeting Asia as a region for growth

31 guestlogix explores asia Results of a recent study of Asian purchasing habits by Torontobased Guestlogix is part of a special insert in this issue of PAX International

SPIRITS REPORT 43 continued innovation Diageo gives whisky lovers something to talk about by adding two aspirational expressions to the revered Johnnie Walker range

CRUISE COVERAGE 44 Mha Meets in orlando Attendance up for 27th Annual Marine Hotel Association Conference and Tradeshow

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A D V E R T O R I A L

Responding positively and professionally lpha Flight Group Ltd (Alpha), wholly owned by dnata, is a leading international flight caterer employing 5,800 staff worldwide. Alpha currently operates at 58 airports in 11 countries, producing over 120,000 meals per day. Alpha also operates a number of food and beverage outlets at airports in 5 countries. In 2011 Alpha’s turnover was £426 million. Our Asia Pacific presence is predominantly Alpha’s Australian network, which was formed by the acquisition in 1995 of Connat. The business had its origins in a modest café in a small Tasmanian airport where Peter Smith, one of Connat’s founders, developed a reputation for great sandwiches - in fact they were so good that major national carrier, Ansett Airlines, asked Peter to make sandwiches for their daily service from Devonport to Melbourne. Peter became a flight caterer and those 7 flights per week grew to 500 flights as Peter expanded along the East Coast of Australia to Townsville, Coolangatta and Canberra. The origins of Connat are not dissimilar to Alpha’s entry into the flight catering market; 40 years earlier in 1955, a restaurant operated by the company at London’s Heathrow was asked to provide sandwiches to Pan Am. Australia has long enjoyed consistent growth in both leisure and business travel from across the world. Alpha expanded to capitalise on that growth in 2002 by acquiring the former Ansett flight kitchens in Melbourne, Sydney, Brisbane, Darwin and Perth. Today, Alpha has 10 flight kitchens in 9 airports; Sydney (2), Melbourne, Brisbane, Perth, Adelaide, Canberra, Darwin and Townsville. The business remains under the successful leadership of Peter Smith. Our airline clients include: Air Austra, Air New Zealand, Air Niugini, Air Vanuatu, China Airlines, China Eastern, China Southern, Emirates, Etihad, Eva Air, Jetstar International, Malaysia Airlines, Qantas, Qatar, Royal Brunei, Scoot, Skywest, Solomons, Thai Airways and V Australia. Middle East carriers, notably Emirates have expanded rapidly with increased frequency and larger aircraft. Meanwhile, Chinese Airlines such as China Southern and China Eastern also have spectacular plans to increase their presence in our region over the next few years - as do other Chinese carriers as is reflected in phenomenal numbers of new aircraft on order. Our rapid growth from one international airline at the start of 2004 (Air Vanuatu), to now 20 international (in addition to our traditional Domestic carriers) has presented many challenges; employee numbers have increased from a 100 to 1000 bringing with them extensive experience and cultures, to mirror the needs of our customer base, ensuring that their diverse needs are appropriately catered for.

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"I am delighted to say that our ability to respond positively, promptly and professionally to the changing needs of our diverse client base is a quality our clients often refer to" said Conrad Smith, Chief Operating Officer Alpha Australia. The high volume of growth amongst Australia’s Asia Pacific neighbours is attracting tourist and business sector traffic, especially from China. The Chinese business is undoubtedly the fastest growing – currently up 29.5% over the past 12 months, the latter being driven by the export of Australia’s vast reserves natural resources to China. Pursuing a very clear and purposeful market proposition of providing competitive, reliable and high quality offerings based on our passion for the quality of our product and service standards, Malaysia Airlines appointed Alpha to service all of their principle Australian destinations; they remain a significant and valued customer. Following our success in securing Malaysia Airlines, we made a virtue of our Halal pedigree by targeting other Halal specific airlines. A few months later we were rewarded with the Emirates contract, a major test of our resources as the start up was simultaneous across the network with 77 departures a week from day one. We have since added Etihad and Qatar Airways to the portfolio. More recently we have focused on the Chinese market, since it was apparent that much of Australia’s future growth will be derived from the region, thus far we have succeeded in securing contracts with China Southern and China Eastern at three of our airport kitchens and have added Taiwanese carriers China Airlines and EVA Air to the portfolio. Following upon the construction of a second kitchen facility at Sydney airport we have recently completed a multimillion dollar extension of our Melbourne facility and are about to undertake material investments at our facilities in Brisbane and Perth, and have placed orders for 12 additional hi-lift vehicles. Given our diverse client base, Alpha’s menu range is very extensive and authentic. We thrive on the dynamics and excitement of the truly great marriage of hospitality and aviation, and look forward with enthusiasm to the challenges that we know await us. “I am extremely proud to lead such a committed, innovative and highly professional team across our network. The recent accomplishments of our colleagues in Australia have been truly magnificent as has been the support we enjoy from our airline partners,” said Lionel Wilton, Alpha Flight Group CEO. w w w. a l p h a - g r o u p . c o m


THALES/APOT INTERVIEW

Zeng Li, General Manager of CETCA and Alan Pellegrini, CEO of Thales In-Flight Entertainment and Connectivity shake hands at the official signing of the new joint-venture agreement

Welcome to

Korea! Dear delegates,

No wonder people say: "we do things differently in the Asia Pacific" - you only have to look, and the difference is evident right before your eyes! Welcome to APOT.Asia’s Forum 2 in Incheon, Korea, a perfect example of this difference and our second event after the successful Bali forum last year. Our host Korean Air is showcasing the Forum 2 this year, which promises to be another magical event, and it is only made possible with all your support, so thank you. We like to think of it more as a celebration than a conference, while making it fruitful and commercially significant to the participating businesses, the aim is to enjoy the event. We strive to find the best possible locations and create truly memorable experiences each time we get together. Please tap me on the shoulder and say hello in person; I really look forward to meeting you all during the forum. Once again thank you for all your support and welcome to Forum 2. Keerthi Hapugasdeniya, Founder APOT.Asia

APOT.Asia

promises education and networking with a twist Last year in Bali, roughly 200 delegates at the inaugural APOT.Asia (Asia Pacific On-Beard Travel) forum were treated to a unique three days of relaxed education and networking as they gathered to promote and advance the quality of passenger travel and tourism opportunities in the Asia Pacific region. Hosted by Korean Air and now partnered with several other industry organizations including the International Flight Services Association (IFSA), Airline Passenger Experience Association (APEX), and Tax-Free World Association (TFWA), this year’s APOT.Asia promises to deliver on both fun and functionality. The Chef’s Competition will again be a major highlight of the APOT.Asia forum. APOT.Asia web page specifies that all chef teams must be comprised of qualified chefs or cooks currently working for a recognized airline or an airline caterer.

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Thales supports APOT.Asia for second year AX International recently caught up with William HoutMarchand, Vice President, Sales & International for Thales IFEC. As a proud supplier of IFE and connectivity solutions to Korean Air, host of this year’s APOT.Asia event in Incheon, Thales happy to get involved with the Asia Pacific Forum as a key sponsor and exhibitor. Additionally, Hout-Marchand will take centre stage on June 13 as one of the event’s keynote speakers. “Thales has made major investments in offices and capabilities that support the Asia market,” he said. “As part of our business approach, at the Thales Group level, localizing our operations near our customers is a key ingredient to who we are as a company. In terms of IFEC, we are working with the region on shaping our media, connectivity, system architecture and services to meet the needs of the local customer.” In addition to ensuring sales and service support are readily available to airline customers across Asia, Hout-Marchand says that Thales has tagged the region’s burgeoning low-cost-carrier (LCC) market as an opportunity not to be missed. In response to the changing market landscape, Thales has engineered its latest solution platform, the TopSeries AVANT, to be modular so as to adapt to configurations matching the needs of the LCC segment. “We call this version of our new platform AVANT lite,” he explains. “Further, is our newest wireless streaming media solution called TopSeries AVA, which introduces a new breed of IFE that compliments passenger handheld devices and is very attractive for this segment. Key benefits of TopSeries AVA include easy installation, minimal impact to the aircraft and the provision of a reasonable amount of capability.” At the Aircraft Interiors Expo in March, Thales and the China Electronics Technology Avionics Co., Ltd. (CETCA) signed a Joint Venture Agreement that brings together world-class technology solutions companies dedicated to the new C919 aircraft, manufactured by Commercial Aircraft Corporation of China (COMAC). The Joint Venture Operations are expected to begin in the third quarter of 2012, following final approval by the relevant authorities. The partnership supports the integration of the Thales TopSeries system in the cabin of the C919. Designed and built in China, the 156-190 seat C919 will first take flight in 2014 with aircraft deliveries scheduled to begin in 2016. “This is a joint-venture that is just now being born, but the idea is to deliver an innovative IFE solution for COMAC aircraft and expand our footprint in terms of what we deliver to the market,” said HoutMarchand. “There is tremendous energy in what we are doing together in the region. Asia represents a very significant part of our business, as do Europe, the Middle East and Africa. The number of customers that we have in the region is many, and our plan for growth is to further grow our relationship with each of them.”

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Guy Fieri’s Burger Joint is aboard the Carnival Liberty. Photo Courtesy: Carnival Cruise Lines


NEWS

Cathay Pacific’s selection of fine Bordeaux wines for First Class. Left to right: Château Lagrange 2006, Château Branaire-Ducru 2004, Château Pontet-Canet 2007, Château Giscours 2008, Château Cantenac Brown 2005 and Château Lynch Bages 2004

AIRLINE

Cathay Pacific beefs up inflight cellar with bevy of Bordeaux wines A half dozen Bordeaux Grands Crus Classés wines are now pleasing passengers in First Class on Cathay Pacific Airways. The airline announced the selection in May. The six were chosen from the Classified Growths of what is called the Bordeaux Official Classification of 1855. “The 1855 classification was created to present the most famous Bordeaux wines at the Paris Universal exhi-

bition,” said a release from Cathay Pacific. Cathay Pacific’s Manager of Catering Services, Charles Grossrieder, said the airline’s team worked closely with its wine consultants on a panel in Hong Kong to pick the selections. The airline has approximately 70 wines it is offering inflight and serves approximately 1.6 million bottles on its flights per year.

SUPPLIER

Halal certification brings key point of differentiation for Kleenhanz® A major stride forward within a competitive market, Kleenhanz® has recently been granted Halal certification, making their Handwashing On-The-Go® solution permissible under Islamic law. “This was a key point of differentiation for Kleenhanz®, as we believe we are the first product of its kind to receive Halal certification,” said Lance A FitzSimon, COO and Co-Founder. “We believe this will allow us to reach out to Muslim nations with a greater acceptance as compared to alcohol gels and foams which to date have been the primary option for most consumers and businesses and are old science, while Kleenhanz® is the next generation of hand hygiene.” The certification process took approximately one month to receive and involved every aspect of the product being scrutinized, FitzSimon told PAX International. With a transportation industry that is increasingly concerned with the spread of germs, FitzSimon says that Kleenhanz® is the perfect fit for travelers. “Passengers traveling, especially in airports, need a true solution to hand washing when soap and water are not readily available - as is so often the case in today’s fast paced society. Kleenhanz® provides a true 100% alcohol free, antimicrobial Handwashing On-The-Go® solution allowing you to clean, sanitize

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The certification process took approximately one month to receive and involved every aspect of the product being scrutinized

and remove dirt and germs from your hands when you either have no access, or time, to use soap and warm water.” Currently Kleenhanz® is marketed in the United States, however FitzSimon says that the company is looking to expand internationally due to recent interest from various regions, including Malaysia. “The Asia Pacific region has always been a key component of our growth plans for Kleenhanz® as this is a region that is very concerned, educated and aware of the spread of germs in today’s fast paced society. With greater populations in such close proximity, the spread of germs is all too real and has a greater propensity for reaching pandemic proportions.”


SUPPLIER

FORMIA is licensee of Chopard for airlines

GuestLogix targets Asia Pacific region for expansion

FORMIA recently secured exclusive rights to supply branded Chopard amenities to airlines, which includes a range of cosmetics and Chopard branded bags. Chopard is a Swiss based luxury watch, jewelry and accessories company. It is among the few retail “über luxury” brands to be launched on to the airline amenities market. The Chopard travel care line is available in 30 to 100 milliliter sizes. Yves Alavo, Executive Director of FORMIA, says about the range: “It is a stimulating line, a unique blend of selective ingredients that will soothe all those seeking luxury, beauty and invigoration. When enjoying Chopard products, the traveller enters a world of well-being offering vitality and sensuality.” FORMIA recently introduced Chopard on board Air Astana’s Business Class and has won, together with the airline, two Travel Plus Awards for these kits in their category: Gold for the Gentleman’s kit and Silver for the Ladies set.

Global provider of onboard retail and payment technology solutions to airlines and the passenger travel industry, GuestLogix has recently established an Asia Pacific headquarters in Hong Kong. Veteran airline industry executive Tony Sit is heading up the new offices. The company has also launched Chinese, Japanese and Korean versions of its onboard retailing solution and certified all of its devices to support China UnionPay (CUP) card transactions, in addition to other major payment types, to better meet Asian airlines' immediate inflight retailing need. As one of the world’s fastest growing travel markets, with one-quarter of global passenger traffic taking place in Asia Pacific, airlines in the region are looking to maximize their passengers’ spending power while onboard by leveraging new onboard retail technology solutions to improve operations, enhance their passengers’ inflight experience and grow revenues while increasing customer loyalty. GuestLogix intends to continue expansion efforts in the Asia Pacific market and plans to open regional offices for sales and support in China, Singapore and Australia, providing the Asia Pacific region with access to more customized onboard retailing solutions, that meet the region's specific requirements.

The GuestLogix onboard retail solution is now available in several Asian languages

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NEWS SUPPLIER

AIRLINE

dnata takes majority share of baker En Route JAL and Halekulani Air services provider dnata will take a majority ownership in En Route International Ltd., an airline industry baked good supplier, the two firms announced in May. En Route has been operating for 10 years, with distribution centers at London Heathrow and Hartsfield-Jackson International Airport in Atlanta and in Dubai. Among the company’s important customers are Delta Air Lines, British Airways and Emirates. The company’s annual sales are approximately £12 million (US$19 million). “En Route is a niche player which offers highly creative and innovative food solutions, support by robust logistics,” said Stewart Angus, Divisional Senior Vice President, Associated Companies at dnata. Angus

said En Route would continue to operate independently under Managing Director Allison Lessmann. “With the addition of dnata as a shareholder, the directors are confident of being able to continue investment in our facilities, equipment and our staff,” said Lessmann, in an announcement of the purchase. “This secures our ability to provide long-term satisfaction to all our customers.” The deal represents a further involvement by Dubai-based dnata in the airlinecatering sector. Other recent acquisitions include Alpha Flight Group Ltd. and Wings Inflight Service in South Africa. The company also operates an airline-catering unit in Singapore

SSP to open five operations at new Hangzhou terminal SSP has secured a seven-year £35 million (US$56.8 million) to operate five units at Hangzhou Xiaoshan International Airport when the facility’s new third terminal opens in November. There will be a mix of Chinese and Southeast Asian brands and Western cuisine. A survey of passengers in the area showed a high demand for concepts based on Chinese foods, but also a desire for variety, quick service as well as table service and value for money. Chinese brand Goubuli will bring baozi (Chinese filled steamed buns) to the new terminal. The company has grown to become one of China’s best-known purveyors of Northern Chinese cuisine. Ajisen Ramen is the leading Japanese Ramen chain in China. Ajisen Ramen has been part of SSP’s brand portfolio since the company opened its first outlet at Hong Kong in 2003. Research shows that the cuisines of South East Asia and Korea are becoming increasingly pop-

ular in China. SSP’s offer will therefore include Spices, which serves Southeast Asian dishes, and Feng Yuan, which is based on the foods of Korea and has operated at Shanghai’s Pudong International Airport since 2008. SSP will also create a bespoke counter service restaurant offering local Hangzhou snacks. The lineup will have French-style brasserie Le Grand Comptoir, which recently opened at Oslo Airport. SSP’s research found a desire for Western food at the airport, and the company believes that Le Grand Comptoir will tap into the growing interest in French food and culture in China. The outlets will be located in two separate areas of the terminal and will total 1,000 square meters. Hangzhou Xiaoshan International Airport handled 17.8 million passengers in 2011, an increase of more than 50% since 2007. The new terminal will enable the airport to handle the continuing rise in passenger numbers, which are predicted to top 24 million in 2014.

CATERING

SATS sales for year top S$1.6 billion A strong fourth quarter in several key operating divisions and a busy time at its home airport pushed yearly sales for SATS close to the SGD$1.7 billion (US$1.33 billion) mark and gave the Singapore based company the most profitable final quarter as its financial year ended. In the fourth quarter of the company’s fiscal year, SATS logged SGD$433.3 million (US$339.8) in sales and earned an operating profit of SGD$48.3 million (US$37.8 million), a 10 percent increase from the fourth quarter of the previous year. Final sales for the year were S$1.685 bil-

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lion (US$1.32 billion), with a yearend operating profit of SGD$169 million (US$132.5). In the Group Earnings Report, SATS said that sales at its gateway services and food solutions group increased significantly. Increased flights and higher passenger traffic at Changi Airport and improved operating performance at its SATS unit in Hong Kong and the TFK operations in Japan also helped drive sales increases. SATS meal production increased 5.7% for the fiscal year ending in March reported the company, which also noted increases in passenger handling

Corp. Partner to offer The Halekulani Corporation, which includes globally-acclaimed luxury resort Halekulani and Waikiki Parc Hotel, has announced a partnership with Japan’s premier air travel provider, Japan Airlines (JAL). From June 1st to August 31st, 2012, the alliance will extend the hotel’s renowned gracious hospitality and iconic services to flyers on the Narita – Honolulu route. Offering JAL’s discerning clients a taste of Halekulani Living, a unique lifestyle that is distinctly Halekulani and founded upon the core principles of Connoisseur, Wellness, Masterworks, and Legacy, this collaboration highlights the airline’s goal to e xtend a cultured experience and deliver a personalized service. The alliance builds upon Halekulani and JAL’s existing relationships with Japan’s legendary hotel group, Imperial Hotel, LTD of Tokyo. “The partnerships of Halekulani, Imperial Hotel and JAL offer a powerful fusion of legacy-based world class services that provides the discerning Japanese traveler with a fluid, harmonious experience in either or both locales,” said Peter Shaindlin, Chief Operating Officer of Halekulani Corporation. “It’s about offering the best of both worlds to every guest: two iconic, luxury independent hotels, east and west, at your personal service from door to door.” Halekulani’s three most popular signature drinks will be offered throughout the evening in JAL's First Class Lounge and Sakura Lounge at Narita Airport. and slight increases in cargo and mail processed. The company breaks down meal production in gross meals and unit meals. Unit meals represent the work handled by catering staff where each meal is given a different unit meal weight factor. According to statistics released April 16, SATS production totaled 26.50 million in gross meals and 20.72 million unit meals. SATS tied the increase in meal production to growth in passengers through its system. “For full year, growth was recorded across all indicators although cargo growth was muted as the higher volumes in the first half were offset by the soft cargo demand in the second half of the year,” said SATS.


PEOPLE NEWS

Loft joins dnata in Dubai As part of its on-going expansion into the flight-catering sector, dnata has recently appointed David Loft as Vice President, International Catering. A trained chef, Loft has previously held a number of airline catering and hospitality roles. He was Managing Director USA at Do & Co and in 2004 joined Flying Food Group, initially as Vice President of the Retail Division, then as Vice President Sales and Service of the company’s airline division. Loft is also the current President of the International Flight Services Association (IFSA).

SATS confirms Interim Executive as CEO Tan Chuan Lye, who has been SATS LTD.’s acting CEO and Executive Vice President, took the position on a permanent basis April 1. “As we enter into this challenging period faced by the aviation industry, my fellow Directors and I are confident that Chuan Lye is well placed to steer the Group in the right direction to achieve its long-term goal,” said Edmund Cheng, Chairman of SATS. Tan Chuan Lye has been with the group since 1976. He has held managerial positions at SIA Ground Services and SATS Airport Services and was responsible for both Singapore Airlines and SATS’ Changi Terminal 2 operations. He was appointed Senior Vice President for Catering in 2000 and promoted to Executive Vice President for Food Solutions in 2009 to oversee and grow SATS’ aviation and non-aviation food business.

In his new role as Vice President International Catering, Loft will work closely with the CEOs to further develop dnata’s portfolio of catering businesses to optimize the operational and financial performance of each, as well as to identify and maximize on synergies between Alpha, Wings and dnata itself. Loft will also be responsible for identifying and executing opportunities to further develop dnata’s portfolio of international catering businesses, whether acquisition, joint venture or ‘greenfield’ prospects.

Brady joins Inflight Productions team Inflight Productions (IFP) has added Dee Brady as Director of Marketing to its global team. She will be responsible for leading IFP’s marketing initiatives. Brady will lead the company’s strategic move toward meeting the needs of airlines to engage passengers

Joly named Vice President at AIA/DTI Patrick Joly has been named Vice President of Group Strategy Implementation of the Advanced Inflight Alliance Group, which is made up of DTI Software and Inflight Productions. He will be in charge of implementing business strategies across the group of companies. Joly is returning to the company after working as Managing Director of Spafax Interactive. Before that, he spent 12 years at Director of Program Management and Vice President of Customer Care at DTI Software. Among his accomplishments were implementing the company’s Customer Relations Program, which helped acquire a number of DTI’s airline customers.

Servair’s Eloy takes on new duties Boris Eloy has been named as their new Marketing and Innovation Director at Servair. Eloy will also continue in his current role as Director of Communications. Among his new responsibilities will be to manage the definition and implementation of Servair’s Innovation strategy, intended to promote the group’s branding and culinary signature by capitalizing on its culinary identity. He is also creating the new Servair professional services, and organizing and coordinating the cookery division. He will be working closely with Servair Corporate Chef Michel Quissac. After working as a journalist and communications manager with other firms, Eloy joined SERVAIR in 2001 as Communications Director.

Cook named Vice President at Crane Aerospace Crane Aerospace has named Chris Cook as the company’s new Vice President, Cabin Systems Solutions. Cook will be responsible for leading the company’s cabin systems product line. He will be in charge of strategy development and planning, and meeting product line financial objectives. The company makes a number of products, among

in the new complex IFE environment. Brady was with British Airways for 20 years in a number of roles before becoming in-flight entertainment (IFE) Publishing and Media Manager in 2002. She also managed all magazine flagship publications and related media sales revenues for the airline.

them the mcX and iMotion, which provide computer control electronic motion and comfort control for first class and business class seating. Crane also makes the Hydrolok® and Michlok® products that provide seat recline actuation and control. Before taking the new position, Cook was Director of Cabin Systems Programs for Crane.

Avianor Group appoints Vice President Corporate Sales and Strategy Avianor Group recently announced that Virginia Taborda has joined the team as Vice President of Corporate Sales and Strategy based in the company’s Mirabel headquarters, near Montreal. “Bringing her solid background in sales, aircraft leasing, business development and finance, Virginia will help our company continue its rapid growth,” Earl Diamond, Executive Vice President and Chief Operating Officer said in a statement. “To support our current operation and future opportunities, it became evident that we should expand our management team to include a greater focus on sales and strategic business development, which will allow our company to build sustainable growth for years to come.” Taborda will add depth to the team to ensure relationships with key clients are managed to their highest expectations and that Avianor’s level of service to customers and product quality is not reduced as the company continues to expand.

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INDUSTRY Q & A

Continental shift

PAX International recently caught up with Mr. Andrew Herdman, Director General of the Association of Asia Pacific Airlines, who discussed with us the mission of the AAPA and offered some exceptional insight into the region’s passenger and cargo aviation sectors PAX International: Tell us a little bit about the AAPA. Andrew Herdman: The Association of Asia Pacific Airlines (AAPA) is a trade association representing the community of Asia Pacific based airlines. Our counterpart in America would be Airlines for America or in Europe, the Association of European Airlines (AEA). We are an independent organisation, but work closely with IATA and other industry stakeholders. Our interests are aligned on many issues, but there are certain issues where regional differences become important. We spend a lot of time in Washington and Brussels because the US government is influential in making rules for America and that cascades out to any airline that flies there. Similarly, rules made by the European Union have a broader international impact. We aim to promote an Asian perspective on global policy and highlight what aviation can do for the broader economy. In this part of the world, aviation is seen almost unreservedly as a good thing, because the way in which aviation has promoted broader economic and social development of the region is well understood. We have a full time secretariat of about 20 people based in Malaysia, and also maintain representation in Washington and Brussels. Much of our work is done in conjunction with industry experts from the member airlines through various committees, working groups, task forces and so on. PAX: How is the passenger aviation landscape changing in Asia? Herdman: In the past people viewed Asia as a destination, but with the dynamic growth of the Asian economies, people see their incomes rising, and now they themselves have begun flying. So we have seen a surge of outbound travel through a succession of markets. There has been outstanding growth in China, both domestically and internationally. India has been slow to take off and was held back for many years, but is now growing rapidly, although not without difficulties. Other developing markets like Indonesia and the Philippines are also growing rapidly as incomes start to rise from what were historically low levels. Japan has always been a huge market and Korea is a tremendous success story - both in terms of economic growth and the growth of aviation, with two very successful airlines

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internationally, plus a world-class aviation hub at Incheon airport which consistently wins awards along with other leading Asian airports. PAX: Can you tell us about air cargo in Asia? How is it linked to passenger aviation? Herdman: The air cargo business is a 50 billion dollar business globally, but in terms of the value of the cargo itself, we are looking at about 5 trillion dollars worth of goods being shipped by air annually. Asian airlines are the clear industry leaders, carrying around 40% of total international air cargo. They have invested heavily in the cargo business because they generally fly wide-body passenger aircraft with significant belly cargo space, plus they operate, between them, well over a hundred large dedicated freighters, mostly B747’s. Asian carriers have identified air freight as a business that they want to focus on, and have developed it exceedingly well. It’s a different kind of business, but it does overlap with passenger aviation because about half the cargo goes in the bellies of passenger aircraft. PAX: Would you say that the low-cost-carrier (LCC) phenomenon is putting pressure on the full service carriers of the region? Herdman: Certainly in the short haul point to point markets the trend was slower to reach Asia, but now there are some very successful carriers in the region using this business model. You have Jetstar Airways, a Qantas subsidiary, which was very successful initially in Australia and is now expanding across the region with joint ventures. Similarly, Air Asia has been very successful in expanding its regional network through international joint ventures. Then we have the likes of Cebu Pacific in the Philippines and Lion Air in Indonesia, which are mostly domestic, but are now branching out internationally. Worldwide, LCC’s probably carry about 25% of passengers in terms of numbers, but mostly short haul. So in revenue terms they are probably capturing just over 10% of the global revenue pool, though we are starting to see some of them exploring longer haul markets. There is room in the market for a variety of competing business models, with global network carriers still playing a powerful role in the industry, and investing heavily in both customer service enhancements and innovative new business ventures.


PAX: Are there any misconceptions about the Asia Pacific carriers as a group that should be set straight? Herdman: The general perception of Asian airlines is that you’ve got some very well known global brands with a reputation for superior customer service, but what is less well understood is the sheer scale of Asian aviation. Overall, Asian airlines are carrying about 25% of global passenger traffic, so comparable in size to the groupings of US or European carriers, and as I mentioned in terms of cargo they are way ahead. Decades ago, the majority of passengers were Westerners visiting the region, charmed by Asian hostesses. Those days are long gone. If you look at the demographics now it’s a lot of people from everywhere, including lot of growing Asian economies. Nowadays, airlines have to think much more broadly in terms of demographics and ethnicity. What is it they are looking for in terms of inflight entertainment, food and beverage? How do they want to be served? PAX: Premium economy is a hot topic lately. What do you think the future holds for this and why? Herdman: I think that because long haul business class has largely come to be defined by the presence of a flat bed, a big gap has opened up between that and the price point of economy. The question now becomes: where do you pitch premium economy? What is the price point and level of comfort? Are you trying to persuade people to trade up from economy, or are you worried about people trading down from business? Only about 3% of passengers are flying first class, so some airlines have given up on it entirely, with the exception of prime routes linking global business hubs. This is why a lot of airlines are putting

something in between, which is premium economy. Cathay Pacific launched such a product recently, following similar initiatives by a number of other airlines. It is becoming a question of whether you have two, three or four classes of service. It’s very challenging because Asia is not homogeneous, and as yet there is no common standard for premium economy. As more airlines start to introduce it, we may see some kind of convergence in terms of what that product delivers for the passenger.

“In the past people viewed Asia as a destination, but with the dynamic growth of the Asian economies, people see their incomes rising, and now they themselves have begun flying. So we have seen a surge of outbound travel through a succession of markets” Andrew Herdman, Director General of the Association of Asia Pacific Airlines


REGIONAL REPORT

Korean Air’s Duty Free Showcase on the A380

A business link

The arrival of Korean Air’s A380 to Frankfurt in March is an important connection between two cities that have strong commercial ties by Rick LundstRom hen executives from Samsung, Daewoo or Hyundai touch down early in the evening in Frankfurt, Germany on Korean Air’s Flight 905 they stand a much better chance to be rested and comfortable, and ready to start the next day fresh. That is because what Korean Air is hailing as a “game changer,” a daily A380 flight configured for comfort, shopping and, if passengers are so inclined, a little relaxation at the bar, has made the long trip across Asia more pleasant. The first daily flight took place March 25. Frankfurt is the fourth destination for Korean Air’s A380 service. The introduction of the big jet on service between Incheon and Frankfurt is expected to capture an increasing number of business and leisure travelers from China, Japan and East Asia transiting though Incheon International Airport, raising the profile of the Korean Air hub. As important, it will be another step in strengthening the business ties between two countries that increasingly look to each other for opportunities. “The advancement of Korean business into the German market has been active since 1990,” said a statement on the service from Korean Air. “Medium and small-sized businesses of Korea are continuously incorporating in Germany, as well as well-known Korean conglomerates.” A trip through the Frankfurt.de website confirms the strong ties between the two countries. More than 40,000 Koreans visited the city in 2011, and nearly 4,000 call the Frankfurt area home. Other facts: nearly 150 Korean companies have subsidiaries in the area covered by the Frankfurt Chamber of Commerce and Industry. Though many of the companies are service related, Korean banking, freight and logistics companies are also putting down roots in Frankfurt and further out into Federal State of Hesse. KE 906 is one of 21 passenger flights per week between the two

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Ninety-five passengers can occupy the upper deck on Korean Air’s A380 Prestige Class

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countries. However the A380 will be a significant tool for Korean Air in the competitive market. Like its previous A380 flights from Incheon to New York, Los Angeles and Hong Kong, Korean Air has configured the aircraft in a three-class layout stressing accommodation, while seating fewer passengers than A380s in operation by other airlines. Many of the features, including the airline’s unique Duty Free Showcase and Celestial Bar and 12-passenger Kosmo Suites First Class have grabbed the attention of industry watchers since they were first shown. “Simply put, we give utmost priority to what customers really want and how to provide customers with maximized space,” said a spokesperson for the airline. “Listening and giving weight to the voice of your customer, and trying exceed their expectations are of utmost importance in cabin design. For a service industry company, it is a crucial formula.” The airline’s Prestige Class takes up the entire Upper Deck of the A380. Ninety-four passengers can relax in lie-flat comfort and “private jet ambiance” with bars fore and aft of the aircraft. The rear of the upper deck is the Celestial Bar in which Korean Air has partnered with Absolut and recently the carrier has added dining elements to its First Class A380 service. Passengers can now select Chateaux Rieussec 2006 - a renowned Sauterne - complimented with foie gras as a special treat. In Economy Class, Korean Air has enhanced seating comfort and features with designs featuring a slimmer seat with a bottom cushion that slides forward on recline. They are also equipped with USB ports and laptop power ports. “Korean Air has always aimed to be a leader in Economy Class travel and thus have again proved the latest seating products in that cabin,” said the spokesperson. “A 34-inch seat pitch has been retained on the A380, making our Economy Class product the most comfortable of any A380 operator so far.”


Aerofood ACS


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REGIONAL REPORT Meal service in Premium Economy on Cathay Pacific. A new 777-300 in the layout was delivered in February

Paying a premium Asia Pacific airlines are stepping up with their ways of defining a Premium Economy experience that is evolving around the world hough aircraft have been operating with a separate upgraded economy class configuration for more than a decade in some cases, the efforts by airlines to bridge the gap between business class and economy class is evolving, gaining new emphasis and attention. Two recent introductions by airlines in the Asia/Pacific region are testament to the importance of finding a sweet spot for passengers still seeking something other than the lowest priced airfare possible. By the end of this year, Cathay Pacific Airways and All Nippon Airways will be increasing the percentage of Premium Economy seating, adding new routes monthly where passengers have the option to purchase the service. Elsewhere, in Asia Pacific, Air New Zealand is in the second year of a new look for its Premium Economy cabin in the form of a Spaceseat built for comfort and versatility. But who are the passengers that are selecting the product that, in addition to comfort, can offer additional services from check-in through final seating? That’s one of the questions that intrigues people like Andrew Herdman, Director General of the Association of Asia Pacific Airlines, who has been watching Premium Economy take shape in his region. “I think that because long haul business class has largely come to be defined by the presence of a flat bed, a big gap has opened up between that and the price point of economy,” he tells PAX International. “The question now becomes: where do you pitch premium economy? What is the price point and level of comfort? Are you trying to persuade people to trade up from economy, or are you worried about people trading down from business? A few common standards have emerged, based on questions submitted to three airlines by PAX International. Airlines with recently configured fleets in Premium Economy have settled on a seat pitch of between 38 and 40 inches. Passengers are welcomed on board with a complimentary drink. From there, additional service can be in the form of exclusive amenity kits, special boarding privileges and access to more food during the flight.

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“Improved living space” Last month, Cathay Pacific Airways added selected flights to London to four previously added cities with a Premium Economy product that started with delivery a 777300ER to Hong Kong at the end of February. By the end of this year, Cathay Pacific will have 48 aircraft installed with the new Premium Economy cabin. A total of 87 aircraft will be installed by the end of 2013. The Cathay Pacific Premium Economy cabin is filled front to back with details. Laid out in a 38-inch seat pitch on its Weber Aircraft seats, Cathay Pacific enhances its service with details like a separate cabin for 26-34 passengers, seats with an 8-inch recline, leg and foot rests, and 10.6-inch screen and computer and power ports. Following another trend, Cathay Pacific distributes amenity kits with products

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Rick LundstRom

made from recycled PET plastic. The toothbrush, made of cornstarch and cellulose, is biodegradable. “Noise cancelling headsets and pillows offered in Premium Economy are the same as what are offered in Business Class on long haul flights to give passengers a sense of Premium over Economy Class,” said Hilary Pang, Product Manager Inflight Economy Class Cabins for Cathay Pacific. On the ground, Cathay Pacific Premium Economy passengers have dedicated counters and pre-boarding priorities. Baggage allowance is between 20 and 25 kilograms for one bag and from 23 to 25 kilograms for two bags. Food service has also been tweaked for Premium Economy passengers on Cathay Pacific. “The main meal ingredients are of higher culinary levels as compared to those in Economy Class and attention is given to taste, authenticity and freshness as would be expected,” said Pang.

10 years ahead

All Nippon Airways launched its Premium Economy service in April 2002, first on a 747-400 and later on a 777-300ER. Shortly after the noting of its 10 years with Premium Economy service, ANA in June began adding routes with the layouts. In June, service between Tokyo Narita and Chicago, Washington, DC and Munich were added in addition to service between Haneda Airport and Los Angeles. By fall, flights to New York, London, Frankfurt, San Francisco, Los Angeles and Paris will have the service. These additions will expand the carrier’s long-haul Premium Economy capacity to 7% of its fleet. “It is our intention to improve our service to Economy Class passengers as the competition with low cost carriers heats up in Japan,” said Nao Gunji, a spokesperson for ANA. Weber aircraft is also the supplier of ANA seats, which are 4-inches wider than Economy Class and laid out with a 38 inch seat pitch. Passengers can recline with a larger leg and footrest. Cabin layout on the 777-300ER is in a 2-4Soup and bubbly: 2 configuration. part of the enhanced Economy On long-haul, Premium Economy meal service is identical to Economy Premium product on All Nippon Airways Class; however, ANA has added greeting service of sparkling wine and soup. “There was no Premium Economy seat on the market that delivered the

JUNE 2012


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Contour developed the Spaceseat for Air New Zealand’s Premium Economy

Uniquely Kiwi “There was no Premium Economy seat on the market that delivered the style of customer experience we were looking for, so we set about designing our own,” said Mark Street, a spokesperson for Air New Zealand. “The resulting Spaceseat is uniquely Kiwi.” The Spaceseat was developed and manufactured for Air New Zealand under license with Contour of Wales. It was first launched in November 2010. In the months to come, the aviation world will see more of the Spaceseat in its 2-2-2 layout. The airline’s new fleet of 777-300s will have 39% more Spaceseats than the carrier’s -200s and 28% more than the 747-400 fleet. The airline plans a Premium Economy cabin for all its long-haul fleet. The Spaceseat reclines to 23 degrees and can move back without interfering with the space for other passengers. Instead of a fixed footrest, Air New Zealand has installed a bean-bag style ottoman foot rest that allows passengers more flexibility in seating positions.

Clarins products have been selected for the Air New Zealand amenity kit. Air New Zealand works with a number of high-profile chefs including Peter Gordon, Rex Morgan and Geoff Scott to develop menus for its front cabin service. “Premium Economy passengers are also able to access an on-demand snack menu which enables them to eat when it suits their body clock,” said Street. “This is popular given many of our long-haul flights are overnight and passengers may not necessarily want a full meal.” After a long period where it seemed that one day airlines would only be offering Business Class and Economy Class service, it now seems that carriers could be supplying up to four classes of service on long-haul flights. “It’s very challenging because Asia is not homogeneous, and as yet there is no common standard for premium economy,” said AAPA’s Andrew Herdman. “As more airlines start to introduce it, we may see some kind of convergence in terms of what that product delivers for the passenger.”

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REGIONAL REPORT

What’s in a name? If the name is dnata, it is a Dubai based division of Emirates whose airline catering influence is increasing in places like Singapore, where the former CIAS facility now carries the company name hough Changi International Airport Services (CIAS) had been under ownership of dnata for eight of its 35 year history, it was only last summer that the Singapore based caterer, security, cargo and ground handling company came officially under the parent company’s name as part of a global rebranding program. The official name change that took place in August of last year was only one of the steps by the Dubai-based dnata to bring its farflung portfolio of businesses and services under a single name. “In the process, a new company logo, vision, mission and set of values were created to encompass diverse portfolio of businesses and unify the 20,000 dnata employees around the globe,” said a statement from the company. In Asia, dnata is readying for additional air travel growth. Several new regional airlines will be coming on stream this year. Recently, the Singapore Tourism Promotion Board has projected that passenger arrivals to Singapore will increase moderately to between 13.5 million and 14.5 million.

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Rick LundstRom

Since the changeover, dnata in Singapore has taken on three new ground-handling clients, Delta Air Lines, IndiGo Airlines and SriLankan Airlines. The company is also expanding its catering operations and opening new premium passenger facilities at Changi Airport this year. During the past fiscal year, the dnata operation in Singapore produced nearly 4 million meals for its customers at Changi International Airport. With its other recent acquisitions such as Alpha Flight Services and its 50% share of Wings Inflight Services in South Africa, dnata’s catering operations worldwide produced more than 50 million meals in the most recent fiscal year. In Singapore dnata has more than a dozen scheduled airline catering customers and caters the A380 service of Lufthansa German Airlines and Air France. In addition to this, the dnata team also caters for a whole raft of charter operators. “Catering is becoming an increasingly high focus of dnata’s business worldwide and it remains a key element for dnata in Singapore, complimenting its ground handling services,” said David Loft, Vice President, International Catering for dnata. To accommodate that emphasis, facility growth is planned for the near future. Recent projects for dnata includes expansion of the 23,000 square meter unit’s inbound docks by four gates, bringing the total number to 10. An additional 100 square meters has been added to unit’s cold holding room with and an extra freezer, which can store up to 180 pallets has been installed. Most of the expansion by dnata in Singapore is taking place in the airport itself. The company is in the midst of revamping its “premium passenger facilities.” It recently opened a new premier check-in lounge in Terminal 1 at Changi Airport, which will serve First Class and Business Class Passengers traveling on some of dnata’s customer airlines. The Skyview Lounge in Terminal 1 is also scheduled for improvements. There, dnata plans to invest SGD200,000 (US$160,000) to increase the lounge’s capacity to 210 people. A third premium lounge is planned to open in Terminal 3 this June. The lounge will be just over 400 square meters and will accommodate up the 90 people. Several customers of dnata Singapore have awarded the caterer for its work. Lufthansa has given the company its Cube Award for three consecutive years. KLM Royal Dutch Airlines has given dnata its Five Crown Award for Best Ground Handler in Asia and dnata has also earned an International Travel Catering Association (ITCA) Mercury Award for its Food Products and Systems categories.

“Catering is becoming an increasingly high focus of dnata’s business worldwide and it remains a key element for dnata in Singapore, complimenting its ground handling services,” David Loft, Vice President, International Catering for dnata 20

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CATERING REPORT

A taste of Indonesia

by

maRyann simson

Aerofood ACS is poised for steady growth as Indonesia’s aviation industry takes off hen discussing the topic of economic strength in Asia, many industry watchers first think of what is happening in China. There has however been significant progress in many other Asian nations and almost anywhere one looks in the region, the signs of it are bright and clear. Arguably, this optimism and growth is best evidenced by an influx of air travel across the region. With a population of nearly 240 million people and an economy that grew approximately 6.5% last year alone, Indonesia is no exception to this trend. In just 10 years, passenger traffic through Jakarta’s SoekarnoHatta International Airport has more than quadrupled. Roughly 50 million passengers moved through the facility in 2011, up dramatically from just 12 million in 2001. In response to the swell of the middle class here and elsewhere in the Asia Pacific region, airlines have developed a multitude of strategies and promotions as they compete for passengers on busy routes. Caterers on the ground must evolve in tandem to keep airlines and passengers satisfied. Since 1974, Aerofood ACS (Aerowisata Catering Services) has been serving up the unique flavors of Indonesia to the region’s airline passengers. Today, the caterer employs more than 5,000 people at seven units scattered across the Indonesian archipelago and prepares complimentary as well as buy on board cuisine for no less than 30 domestic and international carriers. Korean Air, Air Asia, Qantas, Emirates, Thai Airways, China Southern

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Airlines and Singapore Airlines are just a few of the caterer’s highly valued customers. Facilities are fully operational in Jakarta, Denpasar, Surabaya, Medan, Balikpapan, Yogyakarta and Bandung, the largest of which is the Jakarta unit which serves 29 airlines and produces more than 20,000 meals per day. In response to the dynamic growth of the caterer’s largest customer Garuda Indonesia, a new unit is also being established in Pekanbaru. Slated for completion in the first quarter of 2013, this newest addition to the Aerofood ACS family will have a meal capacity of 8000 meal per day and will initially serve Garuda Indonesia, AirAsia and Silk Air. Also in a bid to grow at a level pace with the local industry, the kitchen in Jakarta has acquired an A380capable high-lift that will allow the company to cater flights for Garuda Indonesia’s upcoming European routes. “We are completely dedicated to keeping up with the growing wants and needs of our customers and strive endlessly to provide them with service excellence,” said Bambang Sujatmiko, Commercial Director. “Our inflight food is prepared daily from fresh farm products, both imported and locally grown. All meals are prepared under strict quality control and frequent inspection. At Aerofood ACS we believe that the customer comes first.” In 2011 alone, Aerofood ACS added All Nippon Airways, Hong Kong Airlines, and most recently Sichuan Airlines. The regional carrier, operating primarily out of Chengdu Shuangliu International Airport in the Sichuan region of China, began using Aerofood ACS in June to cater its twice-weekly flights out of Jakarta

on the Jakarta-Nanning-Chengdu route. In response to the changing landscape of passenger aviation in the region, and more specifically the growing number of low-cost regional airlines (LCC’s) and specialized subsidiaries in the region, Aerofood ACS recently developed a special LCC Department. The department helps the company follow the latest trends in buy on board and offer its airline customers an economically sound option that keeps costs down, reduces waste and maximises variety for hungry travelers. “We set up this specialized division in 2010 to better meet the needs of airline customers such as AirAsia, Virgin Blue and Citilink because they have quite different requirements from full service carriers,” explained Sujatmiko. “Low cost carriers still feel that quality is a top priority, however the budget constraints are often somewhat tighter. Different packaging and presentation are used with these airlines, yet attention to detail is still imperative.” Although Aerofood ACS’s primary business has always been flight catering, the company has also branched into other activities with success. Industrial catering services are available to customers in oil, gas and mining operations, and ACS Laundry is a modern and efficient operation with large scale facilities in Denpasar and Jakarta. Servicing local hotels and restaurants, both laundry facilities utilize state of the art machinery and purified water that has been filtered and softened to guarantee cleaning efficiency while safeguarding all variety of linens. ACS Laundry also supports the company’s flight catering operations.

Since 1974, Aerofood ACS (Aerowisata Catering Services) has been serving up the unique flavors of Indonesia to the region’s airline passengers

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CATERING REPORT

Winds of change

PAX International looks at how three smaller caterers leverage a passion and perfectionism to keep Asian airlines and passengers happy by

maRyann simson

In Japan

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TFK is a major player in Japan’s air catering landscape, and has continuously evolved with the ebb and flow of the airline industry

While travelling the world at the request of his thenemployer, a man named Hideki Nomaguchi boarded in 1937 a TWA DC-2 flight from Los Angeles to Chicago. It was during this flight that Nomaguchi, impressed with the full-course meal and top notch service, became interested in the business of airline catering. At the end of the Second World War, Nomaguchi began designing meals for the Japanese aviation industry. Then in 1954, Japan Airlines contracted him to create meals for its international flights and just five years later he established Tokyo Flight Kitchen (TFK). Today TFK remains a major player in Japan’s air catering landscape, and has continuously evolved with the ebb and flow of the airline industry. Complete customer satisfaction remains the ultimate goal of the organization, which today operates two well-established and state of the art kitchens; one at Narita and the other at Haneda International Airport. “As an Asian caterer, naturally the majority of our customers are Asian,” says Tim Zandbergen, Manager at TFK’s Sales and Marketing Group. “But we also have long established relationships with carriers from all continents and produce around 250,000 meals per week. As the oldest caterer in Japan we leverage our experience to design high-quality products and services at cost effective prices. We have up-todate workplaces, streamlined operations and enthusiastic, dedicated employees who perform their tasks with integrity.” Though partner-company and leading airline caterer SATS is expanding globally through a number of joint ventures, TFK remains focused on the Japanese market. This does not mean, however, that the caterer relies exclusively on its expertise in Japanese cuisine. It also supports carriers from across the continent through proficient design and execution of regionally specific

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n Asia, where time-honoured traditions and the latest advancements in technology combine at every turn, airlines compete fiercely with one another and strive to mirror this delicate balance of custom and progress. Though each airline and caterer is unique, all face similar challenges and work tirelessly to find solutions that will help them win business and stay ahead.

cuisine popular in Korea, China, Indonesia, Vietnam and Thailand as well as European and other international menus. Like many other smaller airline caterers in Asia and abroad, TFK takes pride in its highly skilled staff and in-house preparation of meals, which allow for keen attention to detail and strict quality control. “Personally, I see the small in-flight catering industry as a family sharing the same network and goals, where all participants have their strengths and weaknesses,” says Zandbergen. “In Asia, food culture is very important and passengers here still demand quality and service onboard.” This expectation of quality, says Zandbergen, is not limited to those passengers flying with legacy carriers. Asian passenger’s strong desire for an enjoyable travel experience is driving the many discount carriers that are becoming established in the region to challenge caterers such as TFK for premium service options in spite of budgetary restrictions. “This year will be a watershed year in Japan’s aviation history with domestic deregulation and low cost carriers finally establishing bases,” says Zandbergen. “These LCC’s will hit head-on on many major routes and the results remain to be seen, but this will fundamentally shake up the local travel industry, which has long been heavily protected.” TFK has strategies in place to accommodate the distinctive needs of LCC carriers. According to Zandbergen, the caterer sees the LCC evolution as an opportunity for improvement. “We can learn a lot from LCC’s and their relentless pursuit of cost and operational efficiencies.”

In India Peter Andrist, CEO at Ambassador Sky Chefs in India, is no newcomer to the Asian inflight catering sector. For more than 10 years he acted as Gate Gourmet’s go-to for business development, mergers, acquisitions and greenfield projects. Over the course of that decade, Andrist visited numerous catering facilities to perform a variety of tasks and gained a wealth of insider knowledge on the intricacies of how the catering business operates in the regions. “Several aspects (of the role with Gate Gourmet) have had a very positive impact on my current role as CEO of Ambassadors Sky Chef,” he reveals. “Firstly, through the many visits to India, I had already developed a good knowledge of the country and the mentality. I was already acquainted with several of our current customers and competitors, plus the financial and operational aspects of the role allowed me to define my priorities here.” Andrist is also keenly aware of the importance placed by Asian airline passengers on the quality of food and beverages served inflight. While South Asian airlines such as IndiGo, Jet Airways, Spice Jet, Indian Airline and Sri Lankan Airlines are naturally Ambassador’s Sky Chef’s largest customers by product volume, East Asian carriers with Indian destinations also form a significant fraction of the caterer’s overall customer base. “It is true that growth in the Asia Pacific region is strong, especially here in India,” he tells PAX International, adding that here, like in other parts of Asia, the scenery is changing rapidly. “Some years back all Indian carriers served full meals – even on short haul flights. This has changed due to economic situations worldwide. Offerings have been reduced and several of our airline customers have recently changed to a buy-on-board concept, which requires less production capacity and does affect us as a caterer.” A business unit of Narangs International Hotels, Ambassador’s Sky Chef is a pioneer of


Ambassador’s Sky Chef’s Mumbai unit occupies roughly 250,000 square feet just half a kilometer from Sahar International Airport

Hacor maintains a close relationship with Haji Rafek, Certification and Training Manager, Halal Audit and Compliance at Malaysian Airlines

Happy returns

A business unit of Narangs International Hotels, Ambassador’s Sky Chef is a pioneer of airline catering in India

airline catering in India. It has established two successful units within minutes of both busy airports in both Mumbai and New Dehli. The Mumbai unit occupies roughly 12,000 square meter floor area just half a kilometer from Sahar International Airport. With more than 800 staff and 24 hi-loaders the Mumbai facility caters 14 domestic and international airlines plus several charter airlines. The New Delhi unit is smaller with 7,800 square meter floor area and also employs hundreds of people servicing an impressive list of 20-plus domestic and international carriers, in addition to chartered jets, with no less than 23 catering trucks. According to Andrist, the development of the Indian inflight catering sector has been somewhat different from that in other regions. “Initially with the beginning of international flights to and from India, no inflight catering facilities were available. Therefore the obvious choice for airlines was to approach well-known first class hotels such as the Ambassador, Taj or Oberoi. They had large kitchens, international chefs and the ingredients required for the needs of the customers.” He said. “Those companies have since expanded their inflight catering divisions as a vertical business diversification with synergies in purchasing, utilisation of workforce (especially chefs), and opportunities for employees.” In recent years the Indian government has been making concerted efforts to improve airport infrastructure in reaction to an aviation industry, which like in other parts of Asia, appears to be entering a period of significant expansion. On May 24, 2008 the doors of Bangalaru International Airport, India’s first public-private partnership airport, opened officially to passengers. Rajiv Gandhi International Airport near the city of Hyderabad, the second public-private partnership venture in the Indian airports began commercial flights during the same time. “The airport at New Delhi is getting a new state of the art terminal and so is Mumbai,” says Andrist. “A new airport is also being planned in Mumbai, which should be operational in a few years. As pioneers in the Indian flight catering market, we at Ambassador’s look forward to being present at the upcoming airport in Navi Mumbai as well.”

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Part of the Hanjin Group, one of the largest companies in Korea, a single unit ‘boutique’ style unit at Los Angeles International Airport (LAX) called Hacor Inc. Hacor works with a large proportion of Asian carriers outbound from LAX. “We are basically an Asian company with a mix of staff hailing from Asia, Europe, North America and Latin America,” explains Tomu Odawara, Director of Marketing at Hacor, Inc. “being so diverse in our cultural and culinary knowledge hopefully creates better understanding and communication with our customers.” In 2001 Hacor moved into an all-new 100,000 square foot facility with an output capacity of approximately 15,000 meals per day. Currently the unit is preparing about 10,000 meals daily for customers including Singapore Airlines, Cathay Pacific, Asiana Airlines, Emirates,

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This A380-capable hi-loader from TESCO is one of two that Hacor recently acquired.

Turkish Airlines, EVA Air, Malaysia Airlines, China Eastern, Philippine Airlines, Saudi Arabia Charters and several other royal charters. The unit is one of only two inflight kitchens in the United States that still operates a full service bakery and also has the key distinction of being Halal certified by Malaysian Airlines, which is important on many levels. “We always try to be very In 2001 Hacor moved into an all-new 100,000 square foot facility with an output capacity of sensitive to each of our airline approximately 15,000 meals per day customers because each represents a different culture with different practices,” says Odawara. “Malaysian Airlines was the main reason we started the Halal kitchen, but from there it grew on and helped us win contracts with other carriers such as Emirates and our newest addition, Turkish Airlines. We maintain a very close relationship with Haji Rafek, Certification and Training Manager, Halal Audit and Compliance at Malaysian Airlines. He is known worldwide by all that are involved in Halal production. We have him some once a year to do training of our staff. He audits and inspections our Halal kitchen and re-certifies us based on his results.” Hacor is a growing operation. Now with a total of 420 staff, the unit boasts more than 20 catering trucks and has taken on three new airlines in the past few years. Additionally, several of the caterer’s established airline customers have recently added new departures. “Three of our airlines significantly increased their flight volume in March 2012,” Odawara reveals. “We are seeing a lot of our Asian airlines responding to the boom in Asia resulting from the economic health of the region. The airlines are answering with upgrades, not only in services, but in routing as well. They do whatever it takes to keep their passengers happy.” Hacor too is keen to keep its valued customers happy and has mirrored its airline customers with improvements of its own. Two years ago a modernization program began, which so far has facilitated a renewal program of its truck fleet with refrigerated hi-lift trucks, the purchase of two A380 capable hi-lifts from TESCO and STE, and two new ware-washing machines from Meiko in addition to the construction of a new wing at the LAX unit.


World Travel Catering & Onboard Services 9 – 11 April 2013 Hamburg Messe , Germany

The event for the travel catering & onboard services Book your stand for WTCE now World Travel Catering & Onboard Services Expo provides a dedicated business platform for those responsible for catering operations and passenger comfort during air and rail travel. Contact us Daniel Kazimierczak Tel + 44 (0) 208 910 7132 Email daniel.kazimierczak@reedexpo.co.uk

Contact us now to book your stand 9-11 April 2013 Hamburg Messe, Germany www.worldtravelcateringexpo.com

Co-located with:

Organised by:


SUPPLIER FOCUS

Fun is

Universal

Australian creative product agency Buzz talks design, inspiration and character in the Asia Pacific Region and the aviation world at large temming from a simple love of toy design, Buzz has, over the last 13 years, grown to employ a staff of more than 70 talented players with skills in design, production, client service, finance and marketing. With headquarters in Melbourne, Australia and offices in Shanghai and Hong Kong, this hip group of individuals can certainly say that they’ve got a good grip on what it takes to delight and entertain the distinct new breed of airline passenger popping up and into the Asia Pacific region. “As an Asian-based business, we are excited to be working in this region at this time of growth and opportunity,” reveals Barry Gold, Managing Director at Buzz, which plans to participate in this month’s APOT.Asia Forum, hosted by Korean Air at the Hyatt Regency Incheon, June 12-14. “Buzz is committed to increasing resources across all of our Asian offices and supporting the industry through active participation in trade fairs, media and a value-based approach to competition.”

S

by

Airline product supply makes up more than 80% of all business for Buzz, meaning that a wealth of time and energy are devoted to this channel. Children’s inflight products hold a special place for the entire team, who work closely together and take great pride in a strong ability to deliver unique solutions for airlines, providing a one-stop shop with tightly managed quality control specifications, logistics, and on-time global delivery. “Many of our clients are themselves parents, and therefore have an understanding of the importance of play and fun with what is often a really formative experience for a child,” explains Director at Buzz, Leonard Hamersfeld, adding that while different cultures do bring various influences to the creative process, Buzz often discovers that people all over the globe have more things in common than things that set them apart. “That being said, Asia in general has a strong heritage in kid’s toys. We strive to inject the same vibrant, colorful designs and strong

maRyann simson

characterization into all of the concepts we bring to the market in Asia.” According to the Buzz team, in Asia (as with elsewhere), it is becoming increasingly common for airlines to team up with licensed brands to offer high quality products on board that are recognizable and familiar to kids and adults alike. Emulating the overall look and feel of a licensed character, while designing products to reflect key attributes of the brand, are both of paramount importance to the success of the finished product. An in-house team of nearly 20 talented industrial and graphic designers and illustrators, Buzz suffers not from a shortage of creative possibilities. “We derive a lot of inspiration from the famous Asian licenses and brands,” says Hamersfeld. “You can often find anime and cartoon images and product in the studio spurring inspiration and ideas for new concepts.” Going forward, Buzz hopes to grow the concept of ‘family experience’ by working with clients to develop a comprehensive family strategy that connects the entire travel experience, from booking to returning home and everything in-between.

Virgin Australia unveils new line of amenity kits from Buzz Virgin Australia has recently released a new collection of amenity kits, reflective of the sleek new-look Virgin Australia. Featuring a suite of seven unique kits designed by Australia’s Buzz, the amenity offering is available to business class, premium economy and economy passengers on all long haul international flights and selected domestic and short haul international flights. The stylish bags feature the unique design of Hans Hulsbosch. Made from nylon and microfiber materials, the business class and premium economy bags utilize a refined charcoal grey and purple color palette. The designer bags enhance the inflight experience while ensuring the important element of longevity through their reusability. A partnership with Australian skincare brand Grown, an up-andcoming ‘orglasmic’ skincare brand features across all business class and premium economy kits and also has a presence in Virgin Lounges. The collaboration brings organic skin care products such as hand cream,

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lip balm, face cream and shaving cream, to discerning passengers for whom responsible consumption is increasingly important. Other items passengers may find in their new kits (depending on class of service) include a comb, razor, eye mask, dental kit, pen, earplugs, tissues and a vanity pack. Seven variations of the kit are available, they are: Business Class Male, Business Class Female, A330 Business Class Male, A330 Business Class Female, 737 Business Class, Premium Economy and Economy.


www.aircraftinteriorsexpo-us.com/pax 25-27 SEPT 2012

Tomorrow’s aircraft interiors industry in the making

Exclusively Aircraft Interiors Aircraft Interiors Expo Americas is the only dedicated aircraft interiors event in the Americas region showcasing the latest trends, designs and innovations. Meet and network with key industry decision makers from Aircraft Manufacturing Companies, Major Scheduled, Regional and Charter Airlines, Business Jet Operators and Completion Houses.

Taking place in Seattle the hub of aviation Register your interest to book a booth or attend Organised by:

www.aircraftinteriorsexpo-us.com/pax aircraftinteriors@reedexpo.co.uk or call +44 (0) 20 8910 7132


SUPPLIER FOCUS

An Asian approach Suppliers discuss how and why they are targeting Asia as a region for growth by

maRyann simson and LauRen bRunetti

or many years, companies in the business of supplying products for the global inflight industry have enjoyed numerous benefits as a result of setting up sales offices and manufacturing facilities in Asia. Today, as the world watches the region’s aviation industry thrive in the face of economic uncertainty elsewhere, the advantages of a strong Asian presence continue to multiply and companies with a strong footprint there are reaping the rewards in a number of ways. Until recently, it was widely believed that manufacturing products in Asian countries such as China, Taiwan, Thailand, Indonesia and other close neighbors, was a way to minimize productions costs. Now, as these densely populated areas are beginning to see rapid, if long-overdue, economic stimuli and infrastructure growth; rising wages have created a more consumer-driven middle class that wants to travel and enjoy experiences that have, until recently, been reserved for foreigners and an elite upper class. These changes have translated to incredible business opportunities within the region and are redefining how the entire world looks at Asia.

F

Banny Cheung, Chinese CEO

Federico Heitz, Worldwide CEO

Pioneering a new image “On the supplier side, the development of Chinese light industry is well known already,” says Frederico Heitz, CEO of Kaelis, (formerly Asian Pioneer), a Spanish-Chinese provider of onboard products, services and solutions to the global inflight and rail sectors for more than 15 years. “Perhaps the most impressive aspect has been that it has not only relied on competitive prices, but has also learned to manufacture high-quality products that were not available only a few years ago. Besides quality and competitive prices, China now has a state of the art infrastructure that allows it to be extremely efficient and reliable as a partner.” While the company has been headquartered in Madrid since 1997, Kaelis’ sourcing operations are handled from Mainland China by two separate offices: one in Zhejiang province and the other in Canton. These locations, says Heitz, are of great strategic importance and aide in purchasing, quality control and in maintaining healthy relationships with the many factories on contract to produce the firm’s wide array of

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inflight products and solutions. Local presence is also important to communicating with the Asian airlines, whose cabin crews and passengers will eventually become the end-users of these items. “We believe it is always good to have sales support in every region. For this reason, we have teams based in Hong Kong and Bangkok,” Heinz tells PAX International. “Time difference, proximity to the customer and most importantly language and cultural identities are crucial to the relationship with our customers in that region. Asia is without a doubt the one of the fastest growing regions and will remain so in the next few years. Any major player has to be present there.” Kaelis currently works as a supplier to Air Macau, Bangkok Airways, Hong Kong Airlines, Hong Kong Express, Indigo, Malaysia Airlines, Silkair and Singapore Airlines in Asia and numerous others worldwide. Asian carriers represented roughly 12% of the company’s turnover in 2011.


Inside advantage

With 90% of its team based in Asia, it is impossible to deny the size and depth of FORMIA’s footprint in the region. Originally, however, FORMIA was established by a Scandinavian who translated the nation’s 1950’s and 1970’s design boom into travel amenities. Originally designed and commercialized through retail channels, the amenities moved later into travel retail and eventually in-flight amenities. The company had begun shifting its supply chain to Asia, but all activities and operations were moved there formally in 2001 when new owners stepped in. Today FORMIA teams up with a few selected long-term manufacturing supply partners located throughout China. As owner of various brand licenses and distribution rights, these strategic locations enable FORMIA to be directly involved in production to manage production licenses of and moulds. Roland Grohmann is Partner and Managing Director at FORMIA. He says that FORMIA’s Hong Kong base of operations allows the supplier of premium inflight amenities to take advantage of several key benefits. In addition to city’s well-developed infrastructure and incentives designed to facilitate the success of small and medium-sized business and its close proximity to MainlanChina, he says that Hong Kong is also the geographic center of the most dynamic and fast-growing area.

“Within a range of five hours flying time, half the world’s population is at reach,” he explains. “Our headquarters in Hong Kong is mainly focused on product development, design, sourcing, logistics and quality management. We also have offices in Shanghai (sourcing and quality control), Bangkok (marketing and sales) and sales representatives in Europe.” He goes on to explain that as China opens up more and more to international markets and brands, supply chain management and quality control are of the utmost importance. Additionally, challenging geography and distances between major hubs means that freight is moved more frequently by sea in Asia, as opposed to the trucking methods typically employed in Europe or North America. This generally implies larger quantities of product being moved at once and longer lead-times, all of which must be carefully managed to ensure that a flight never departs without the supplies it needs. “FORMIA’s Hong Kong location is an advantage for the understanding of China’s supply chain and product regulations,” Grohmann says. “The ASEAN market is also opening, removing taxes and duties in the trade, so doing business in the region is certainly getting more efficient.”

Part of FORMIA’s Hong Kong product development team hard at work creating attractive amenity kits for airline passengers

A Serving of Superior Quality Our stylish range of dressings, sauces and mayonnaises are made in Australia to the highest possible standards. Available in a range of portion-control options.

Feel free to contact us for further information: Tel: +61 2 8668 8000

Email: cs@birchandwaite.com.au

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SUPPLIER FOCUS

View from down under

Australian-based Birch & Waite Foods has been offering quality food service products for more than 20 years, servicing a wide variety of industries, including being a major supplier to the airline industry in the AsiaPacific region. Originally starting out with only three staff members and making selected retail products, the company grew at a rapid rate and went on to add airline portions to their offerings in 1986. At the present time, Birch & Waite works with Cathay Pacific, Korean Air, Qantas, Virgin, Thai Airways, Vietnam Air and Malaysian Airlines, alongside most major airline caterers across the Asia Pacific region. Michael Hepworth from the Birch & Waite Foods’ Sales Department, says that the emerging middle classes in the Asia Pacific region present huge potential for business, as the population travels more. Hepworth told PAX International that an increase in air travel will result in a rising demand for simple services, and that the in-flight meal will continue to be an added value offer or alternate revenue stream through improved buy on board propositions. “Airlines are going above and beyond the conventional service and are striving to deliver an experience for the traveler pre-flight, while

onboard, and post-flight,” Hepworth said. “Flights have increased variety and snacking options with the traditional biscuit and dip still leading the charge. The combinations are becoming more creative and the methods of delivery more fluid resulting in reduced waste and improved service” Hepworth went on to explain that Birch & Waite has noticed a progressive shift towards a more westernized palette, as Asian travelers gain greater exposure to food flavors and textures. As a result, it is important to understand consumer trends and develop products to suit each market. “Preferences are becoming more sophisticated by the exposure the region is having. An ever increasing number of the general population is travelling and being introduced to trends in western culture,” he said. In time, Hepworth says that the entire Asia Pacific region will deliver opportunities on many levels for the entire industry. “The corner stone for the region’s growth is from the success of China in the global economy and its ongoing development; as a result the entire Asian market is following the trend, even if not at the same rate.”

Sights set eastward Offering a premium selection of ready-to-drink alcoholic cocktails, Kiss Mix has established itself throughout Africa, Europe as well as Asia. The company was created in 2008 from an idea to enter the fast growing alcoholic ready to drink (RTD) market at the premium end of the sector. Robert Millar, Managing Director at Kiss Mix, told PAX International that the company has been targeting the Asia Pacific region for quite some time. “The Asian market has long been a target, with exciting growth across the entire region and increasing numbers of younger professional seeking quality products to reward their hard working lifestyle. With increasing travel linked to increased regional Kiss Mix is answering the needs of a thirsty market by targeting Asia as a region for growth growth we see a real opportunity to deliver a trusted and consistent product whether at home, during travel or at leisure.” tive to continue exciting customers with new flavors by delivering an The Kiss Mix brand presents retail and profit opportunities for air- expanding and evolving product range. “Our mixologist has just lines which are offering a low cost, pay onboard beverage experience, Mil- completed creating several new products and we will shortly launch lar said. The brand also provides airline operators with a number of major a Margarita followed by a Whisky based cocktail,” he revealed. The new benefits, including easy stock control and recycling opportunities. flavors will launch in the USA first and then follow on with the rest Despite the company’s early success, Millar says it is still impera- of the world shortly after.

ZIBO Rainbow introduces newly developed bone chinaware ZIBO Rainbow will place a strong focus this year on the design, always describe bone china as being thin as paper, clear as mirror.” development and production of a unique type of soft-paste porceAs a result of its elegant appearance and countless advantages, lain called bone chinaware. Zhangzhong, said that the new chinaware is most suitable for first Pu Zhangzhong, Board Chairman at ZIBO Rainbow, said bone and business class cabin use. chinaware, which is made from clay, feldspar and quartz, offers several advantages for in-flight cabin use, such as a superior strength, low weight, clarity and brightness. “It is stronger than general porcelain and ceramic because of its materials,” she told PAX International. “Bone china is well known and widely used in airlines all over the world, benefitting from its good quality in weight and high grade. In China we

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THE RETAIL STORE AT 35,000 FEET How New Travel Trends in the Asia-Pacific Region Create New Opportunities for Airlines

Author: Brett Proud EVP, New Markets & Products, GuestLogix Inc. www.guestlogix.com


THE RETAIL STORE AT 35,000 FEET

AN INTRODUCTION FROM BRETT PROUD EVP NEW PRODUCTS & MARKETS, GUESTLOGIX

HOW NEW TRAVEL TRENDS IN THE ASIA-PACIFIC REGION CREATE NEW OPPORTUNITIES FOR AIRLINES It may not have been picked up on the world’s polar and subtropical jet streams, but from Australia to China and from India to Japan and the billions of people who call this dynamic and spectacular part of the world home, a globe-shifting change is in the wind in the Asia-Pacific region. It’s a change in the way the residents of this part of the world, live, think, spend and earn money, and as it relates to the airline industry, travel. With more tech-savvy, mobile-enabled Asia-Pacific travelers taking to the sky exploring the world, the airline industry stands poised to embrace a level of consumer retail opportunities in 2012 that may never come again. The following report looks at these opportunities starting with the economic factors that have given rise to the region’s new affluent traveler, and the opportunity presented to airlines operating within the region as a result. FROM THE HIGH SEAS TO HIGH ALTITUDE: A GLOBAL RELATIONSHIP MATURES RELEASING THE ASIAN TIGER FROM ITS REGIONAL CAGE

From a historical perspective, when looking at the Asia Pacific region, it’s truly remarkable how much things have changed over time. A region once shrouded in isolation and Western mystery, is today the driving force of positive global economic news, shifting cultural habits as it relates to travel, and possibly, the best example of successful modern capitalism, and in China’s case, its so-called “command capitalism” hybrid approach. Later this year, on March 31, 2012, Japan and the United States will mark the 158th anniversary of the signing of the Treaty of Kanagawa, a trade agreement, and the two nations’ first accord. Like the majority of the Asia Pacific region and the West, the treaty helped solidify a global partnership that has largely been one of beneficial exchange, cultural dialogue and business opportunity. But while early relations began with at least the hint of gunboat diplomacy (through the persistence and threatened militancy of US Navy Commodore Matthew Perry who brokered the treaty) make no mistake that in the early 21st century, the proverbial tables have turned, and they’ve turned in a significant, globe-changing way. No longer is it the West and its diplomats promulgating a sometimes one-way relationship, but rather it’s the East and their everyday citizens and travelers that are fostering a healthier, more balanced give and take. Thanks to rapidly advancing global communications technology, increasing education levels and standards of living, Asia-Pacific residents are turning that once tug-of-war relationship into the genuine partnership and exchange of people and ideas it should have been those 158 years ago. And if 1854 was a benchmark year for the “beginnings” of modern Asia-Pacific and Western relations, we would be remiss if we didn’t mention July 1997 as another important date in this maturing exchange. It was during that summer that the Asian financial crisis, known in the press as the “Asian Contagion,” sparked by Asian nations carrying too much debt, and the vagaries of boom and bust economies (sound familiar?), resulted in stock market falls and regional currency devaluations, beginning in Thailand. At the height of the crisis it was feared the Asian Contagion would spread to the rest of the world. Fortunately, it did not. And the results of the temporary regional financial emergency were decidedly more positive, laying the groundwork for the next 15 years and beyond. In an unparalleled measure of cooperation, several Asia-Pacific nations signed the Chiang Mai Initiative in May 2000, allowing partner nations the ability to borrow money at better exchange rates while securing cheaper debt. In other words, the idea of “fast cash” or high liquidity, would help stave off a repeat crisis. The initiative, which continues to expand and provide regional stability helped breed a level of Asia-Pacific interdependence the world has never seen. Additional stability and trade opportunity also came from the outgrowth of China’s admission to the World Trade Organization in December 2001. The WTO, an international trade oversight group that seeks to make trade between nations go as smoothly and freely as possible, was founded in 1995 and replaced the General Agreement on Tariff’s and Trade. And it’s that solidarity that is helping the Asia Pacific region, with some 50% of the global population, today.

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THE RETAIL STORE AT 35,000 FEET

THE CAPTAINS OF INDUSTRY HAVE TURNED OFF THE SEATBELT SIGN: TURBULENCE-FREE (AND PROFITABLE) SKIES AHEAD At the beginning of 2012, while many parts of North America and Europe continue to forecast economic uncertainty having still not fully recovered from their own “financial flu” that began in 2008, the Asia-Pacific region, with Japan, China, and South Korea as its de facto political and economic leaders, has been largely immune. “More than three years on and this partial immunity is starting to have a very tangible and positive effect on the travel and in-flight retail sector as a new generation of affluent, upwardly mobile, and well educated Asia-Pacific travelers take to the skies, spend money, and explore the globe.” From the high seas to high altitude, Asia-Pacific is a tantalizingly rich region for development and the rapidly evolving capabilities of the retail store in the sky.

TRAVEL TRENDS BY THE NUMBERS: WHERE WE’VE COME, WHERE WE’RE HEADING AND WHAT IT ALL MEANS Asia-Pacific residents are on the move – and in record-breaking numbers. Once known for a collective tendency to travel locally, if at all, and often through group tours and packages, survey after survey finds a rapidly changing picture – and travel culture - all of which bodes well for airlines operating in the Asia-Pacific region. Asia-Pacific travelers are visiting places like the United States, continental Europe and the UK in greater numbers than ever before thanks to rising standards of living, an emerging middle class with decidedly middle class values that include a collective desire to “see the world” and travel, and very importantly, growing mobile technology. And they are doing this travel increasingly as individuals with friends, family and loved ones, but not in collective tours which tends to create a barrier between the single traveler and the in-flight retail experience. Expanding smartphone adoption, (which stands at a regional 19%, compared to a European adoption rate of 51% and North America’s 63 %), further places the communicative and interactive power of the app-driven rich media mobile connectivity in the fingertips of millions of tech-savvy travelers. In the first eight months of 2011 the amount of Asians who traveled abroad rose 6% from the same period in 2010, and according to the latest ITB World Travel Report, current forecasts indicate similar robust expansion in the opening months of 2012. In 2010 alone, the total number of Chinese outbound tourist trips reached a record 57.3 million, an increase of over 20% from 2009. Overall, an estimated 90 million tourists traveled abroad from Asia in 2011, spending a collective $86 billion. In fact, whole countries like Tanzania are designing and re-designing their tourist promotion campaigns specifically tailored to the Asia-Pacific community and shifting from their go-to tourist countries, namely, Britain, Germany, the US, Italy, France, Spain, and the Scandinavian countries.   MAKING WAVES DESPITE THE WAVES

France too, among other countries, is gearing up for the heightened Asia-Pacific demand. So strong has Chinese tourism become, (Paris is the most dreamed about city by Chinese) that French travel publisher Michelin has just released its first Chinese guide book: “French Wine Tour,” – in Chinese, hoping to attract the glut of Chinese tourists away from the Eiffel Tower and other tourist mainstays in the City of Light. The Asian outbound traveling good news is especially noteworthy considering Japan’s catastrophic triple disaster earthquake, tsunami, and Fukushima nuclear power plant meltdown, which dragged outbound Japanese travel down 6% in the first eight months of 2011. However, those numbers too, began stabilizing in the second half of the year beginning in July as Japanese, seeking a “change of mindset” sought out travel as a way to de-stress from the national emergency. And while inbound traffic had been off by as much as 50%, the latest data shows a modest recovery there too, though not as strong Japan’s outbound traffic. As one of “We are now generously throw[ing] out gates open for Asia-Pacific’s most critical outbound travel segments, Indians, Chinese and Japanese tourists. In a bid to woo Japan has long been a barometer for the region at large, them, we must use our envoys to promote our attractions and will be an important country to watch. there.” ~Dr. Aloyce Nzuki, Managing Director of the Tanzania Tourist Board

When it comes to attracting this new jet set, Tanzania is not alone.

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FINISHED TAXIING AND READY FOR TAKEOFF: AIRLINE RETAIL OPPORTUNITIES ABOUND The bottom line is that no regional disaster or global economic slowdown is enough to deter Asia-Pacific residents’ desire to spend their disposable income and travel. According to the Asian Travel Monitor, (part of tourism and marketing research firm IPK International) looking ahead, a recent survey reveals 32% of Asian travelers plans to travel more in 2012 than they did in 2011 and 37% plan to travel the same amount. Only 19% of respondents said they planned to travel less. At a time when the majority of Western economies are still struggling, all this positive data, anecdotal evidence and upbeat outlook are more than impressive; it’s amazing. From China to Australia, travelers from this region are poised to command not only an even greater wallet share of the in-flight experience, but from a litany of touch points and through a variety of technologies, including pre-flight, at the gate, even post flight and en-route to the final destination. Armed with real-time data-crunching smartphones, tablets and laptops, airlines are more eager than ever to sell and upsell their newest travelers on the most relevant and wanted products and services they can. Q: Do you anticipate traveling more or less in 2012 than you did in 2011? Yes, as maybe even more often

32%

Yes, as often as within the last 12 months

37%

Yes, but maybe less ofter as within the last 12 months

19%

Rather not

11%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Source :Asian Travel Monitor Trend 1-8/2011

THE NEW ASIA-PACIFIC TRAVELER: AFFLUENCE + EDUCATION = OPPORTUNITY FOR AIRLINES Not only are Asia-Pacific residents traveling in greater number and to more distant destinations, but Asia-Pacific travelers are spending more money on average than Western travelers too. Thai travelers, for instance, were found to spend an average of $4,730 per trip, nudging out those from Australia ($4,381) and Japan at $4,219, respectively. Americans, by contrast, in 2011 spent far less, generally on the order of $2,985 for travelers per trip. Additionally, the regional Asia-Pacific nations’ economies are forecast to enjoy strong gross domestic product (GDP) expansions, ranging from 5% in developing Asian nations to as high as 9% in China and 7.5% in India.

Outbound Traveler Spend

$4,730

THAILAND

$4,381

AUSTRALIA

$4,219

JAPAN $2,985

UNITED STATES

$-

$1,000 $2,000 $3,000 $4,000 $5,000

And as a proxy for regional education levels at-large, in 2010, fully 39% of Chinese outbound tourist travels held a Bachelor’s degree and 11% held a Master’s. In other words, not only are outbound tourism expenditures changing, but so are the very demographics behind the men and women spending that money. “As in Western markets, today’s Asian travelers are wealthier, younger and of course, proud members of the tech and mobile-savvy “iGeneration.” Beyond China, education levels, especially higher education throughout the region continues to rise which is having a direct effect on income and Asia-Pacific wallet share, particularly as it relates to in-flight buying needs. In just the last few years the improvement is staggering. In more developed economies like Taiwan and Korea, gross education rates, (GER) already exceed 85% of the youth population, while in China it’s at nearly 30%. In real numbers, according to the book, Higher Education in the Asia-Pacific, by Professor Simon Marginson, that amounts to some 50 million students enrolled in higher education across the region, up from 14 million in 1991, a 257% increase injust 21 years.

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THE RETAIL STORE AT 35,000 FEET

A RISING MIDDLE CLASS MEANS MIDDLE CLASS ECONOMIC ASPIRATIONS AND MIDDLE CLASS POLITICS Ultimately, a more educated populace is a wealthier populace too. And after more than a generation of rising education levels, it’s starting to have an impact on the region’s social strata. While the term “middle class” is fraught with definitional difficulties, the simplest definition might be: an individual whose income level allows him or her to save some percentage of their earnings while having enough disposable income remaining to purchase goods and services not directly linked to the family food budget or subsistence urban living. Commensurate with those economic levels, cultural attitudes can include: self or group interest, a desire for the accumulation of goods, and tendency toward favoring their country’s established power structure to stave off political or economic instability that would threaten the other two behavioral patterns. By these standards, the regional middle class is rising and rising fast. Arthur Kroeber, of Dragonomics, an independent research and advisory firm, specializing in the Chinese economy, estimates that China’s middle class sits at 23% of the total population. While that may not sound impressive, 23% of a nation with 1.3 billion people is 300 million – or just under the entire US population. Others predict the percentage of Chinese urban middle class to reach 75% by 2025. In India, middle class estimates are far lower, with some 2 million Indians living at North American and Western European standards. But here too, management consulting firm McKinsey & Company, predicts rapid rises in the numbers of Indian’s living just below this threshold. To be sure, per capita spending power for many of these individuals remains below Western standards. But even so, the opportunity for Western retailers, hoteliers, and airlines to attract and build first-time loyalty for this new and rapidly expanding upwardly mobile population segment will never come again.

POPULATION

1,331,466,000 1,000,000,000

U.S.

CHINA

500,000,000

POPULATION

331,911,866 100,000,000

LOOKING AHEAD: THE FRIENDLY SKIES HAVE GOTTEN A WHOLE LOT FRIENDLIER FOR THE AIRLINE AND THE TRAVELER As evidenced from above, after literally centuries of economic, cultural and political seclusion, the Asia-Pacific region, including several nations’ whose economies in the past have rightly been called “miracles” and “Tigers,” are re-defining their global influence – not with weapons, thankfully, but with consumer wallets. As a new generation of travelers takes to the increasingly digital and mobile-connected skies, the retail opportunities for airlines are practically limitless and nearly as unmatched as when airlines began first developing the modern in-flight experience, including drinks, food, and the in-flight mainstay, the full length feature film. Looking ahead, airlines who employ a robust onboard retail strategy can expect continued good news, increasing airline revenues while ensuring Asia-Pacific regional loyalty for decades to come. Despite continued fuel price fluctuations, and recent price hikes, (with the 2012 average price for a barrel of jet fuel – 42 gallons – costing $129.50, up 15.4% from this time last year) ancillary revenues, especially ones catering to the Asia-Pacific consumer, will be critical for airlines in their continued quest to capture this new audience. The following five growth opportunities are well within reach for airlines in the Asia-Pacific region. These opportunities largely focus on technology to improve revenue sources both in-flight and throughout the travel experience, as well as on expanding the ecosystem that surrounds the flight experience in a way that captures revenue for Airlines.

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THE ONBOARD STORE FLIES HIGH Traditional duty free and in-flight retail is not what it used to be. New technology is changing the way airlines sell products and services to their passengers. This technology represents an evolution in the approach to ancillary revenue development more than the creation of new tools to execute established strategies more efficiently. For instance, the GuestLogix OnTouch® platform is designed to create meaningful new ways for airlines to connect with travelers, and provide more opportunities to monetize the travel experience. Managing and controlling branded onboard stores with travel-relevant destination based products and services and providing access to retail opportunities in the booking path, at the airport or gate, in-flight, and at destination using dedicated point-of-sale systems, personal electronics and the mobile channel are hallmarks of this approach.

THE 35,000 FEET OPPORTUNITY Consider the difference between “traditional” booking path ancillaries and onboard retailing. Earning a commission from a hotel reservation is contingent upon attracting a potential passenger to the airline’s proprietary website (and luring them away from more powerfully marketed Online Travel Agencies), presenting that passenger with relevant and attractive partner offerings, and avoiding drop-out or abandonment. In other words, there are many variables beyond the control of the airline. In contrast, “earning revenue through in-flight retailing involves presenting a captive audience primed to spend, with convenient, destination-relevant and attractive retail options through a variety of channels (physically in the cabin, as with food and beverage; through a catalogue, as with duty free; or now, with Wi-Fi capability, through a controlled online portal), and enabling that audience to complete a transaction easily and securely through a branded “onboard store.” According to recent studies, the average shopper spends approximately 20 minutes in a Wal-Mart store. Being able to increase that shopping time in-flight is an essential benefit that airlines can take advantage of. A branded onboard store is not actually a new concept per se - think of a retail outlet on the ground and imagine replicating that idea in the cabin, minus the inventory. What is different, however, is the way in which this concept has been developed to give airlines the ability to create an exclusive and branded experience for their passengers, one that represents the airline’s brand and has multiple touch points that extend the customer relationship far beyond the cabin. Like a retail store, the branded onboard store will involve a different set of characteristics that vary from airline to airline, taking into account, for example, flight duration, destination, and route (business, leisure). Using this data, the airline is able to “stock its shelves” with relevant products and offerings that speak directly to its passengers. In doing so, the airline is able to focus on the needs of the passenger, offering products and services that are relevant and wanted, and a seamless interaction with them throughout their entire journey. While much of the in-flight sales activity is currently dependent on specialized onboard point-of-sale devices to complete transactions, the connectivity factor plays a vital role in an airlines’ ability to provide targeted offers and exclusive content to drive sales. But rather than being viewed as a stand-alone product, in-flight connectivity is an enabler, providing for a seamless and managed onboard buying experience, delivered right into the hands of airlines’ passengers via personal devices and smartphones. Not only can they explore the onboard store, but passengers are empowered to complete their transactions from the comfort of their seat or own device. While both traditional booking path ancillary revenue streams and onboard retailing ancillary revenue streams may be sustainable, one presents a clearer path to growth – onboard retailing. Through innovations like the OnTouch™ Technology and Merchandising platform from GuestLogix, airlines using such platforms have the ability to extend and enhance the onboard shopping experience to all travel touch points with their customers and this includes offline. The onboard store is fully integrated with the airline website to support the prepayment of entertainment, meals, destination services and other retail offerings, driving sustainable ancillary revenue opportunities even further.

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CLEVER, CONVENIENCE-DRIVEN REVENUES Technology is also making the onboard store a more comprehensive revenue generator for airlines and a number of factors come into play in this model. Convenience - passengers purchase destination-specific tickets that are available upon arrival, eliminating the need for queuing or waiting; multiple payment methods – transactions can be made in virtually any global currency, including loyalty cards and stored gift cards, or in local currency prior to departure – all of which provides convenience to the consumer and enhances the passenger’s relationship with the airline. This approach can be seen in the Heathrow Express service, a transit option that provides fast and direct rail transfers from LHR to central London. American Airlines passengers can purchase Heathrow Express tickets from a number of touch points including the departure or club lounges before boarding, as well as in-flight through POS terminals. Banking on the convenience factor, American earns attractive revenue from an in-flight transaction that did not require inventory or additional service or labor to be provided. This example illustrates the sustainable approach to ancillary revenue generation that airlines will be focusing on, by offering innovative and targeted destination-based products and services to enhance their customers’ experience. And by embracing in-flight technology, airlines are better positioned to build loyalty and monetize more touch points with their customers throughout their entire journey, pre-flight, in-flight and post flight.

GETTING ONBOARD AND INTO THE STORE Onboard retailing, while certainly not new to passenger aviation, is still basically in its youth as airlines experiment away from the limited duty-free and inventory-bound model. As airlines have yet to universally adopt retail attitudes and strategies, they lag behind the conventional retail industry. This however, is changing as technology becomes available to facilitate sales with cashless payment options as well as a comprehensive selection of retail options, but the adoption rates can vary regionally in parts of Europe and Asia as they integrate alternative payment options such as BillMeLater, UseMyServices, and newcomers like RhinoPay as well as loyalty rewards, prepaid cards and coupons. Overall, the number of airlines transitioning to entirely cashless cabins has grown significantly in the last few years and includes Delta, American and in fact every North American airline, as well as low cost airlines including Southwest, Spirit and WestJet. Clearly, the adoption of handheld point of sale capability has propelled the growth of in-cabin retail and the evolution in this technology will allow airlines to complete credit card transactions in real time, reducing the risk of fraud. These technologies are defining the onboard retail space while back-end technologies are refining it, allowing airlines to leverage this technology to grow revenues and give greater control to airlines the world over.

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THE RETAIL STORE AT 35,000 FEET

RETHINKING WI-FI, THE CABIN SPACE AND BEYOND These backend technologies are taking in-cabin, online sales to the next level, and transforming airlines into retailers in the sky. Platforms that enable airlines to create logical product categories and relevant service offerings through an online sales portal are allowing those airlines to leverage in-flight internet access to their advantage. This allows airlines to provide free Wi-Fi access to passengers without sacrificing the incremental revenue that could be earned by selling access. Unharnessed, Wi-Fi reduces itself to an instant commodity and leaves significant money on the table whereas airlines that utilize back-end onboard retail technology don’t have to charge their passengers to enter their online retail spaces. Instead, they harness their Wi-Fi “asset” and turn it from a product with finite revenue to a revenue enabler of significant proportion. Technology has always gone hand-in-hand with sweeping industry transformation, and the airline industry is certainly an industry being transformed. Ancillary revenues are sometimes the only source of profitability for airlines still dealing with a volatile marketplace, and as such many airlines are seeking the most sustainable ancillary revenue streams available. For many this means harvesting the booking path for commission-generating opportunities. For others this means optimizing the onboard retail space. But for most airlines and for the entire industry, creating a sustainable ancillary revenue strategy means embracing both a robust booking path and an advanced onboard retail space. The onboard store operates in a strictly contained shopping environment 35,000 feet in the air. The store has locked doors with shoppers strapped inside for a fixed amount of time, often with no distractions, and often with plenty of idle time. If the average consumer visit to a supermarket is 20+ minutes in duration, then imagine the market potential of an onboard store populated by shoppers on a 2 to 4 hour flight? A key aspect of capitalizing on consumer captivity is streamlining the purchasing process. The current approach relies on the Flight Attendant as the facilitator to the sale, but the application of technology can shift the sale to become more passenger-centric. It’s important to remember an old statistic about movie theatres and theme parks: less than 50% of sales happen at the door. The rest is concessions sold to a captive audience.

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THE RETAIL STORE AT 35,000 FEET

THE MOBILE CHANNEL, ON THE GROUND AND IN THE AIR Even as app developers and the smartphone-owning public, (19% for the Asia Pacific region, but here too, rising steadily) have seized on the airline and travel industry as fertile ground for all sorts of mobile innovation–flight tracking apps, apps that determine TSA wait times, rich media and internet access for delays and layovers–the airlines themselves have yet to leverage this channel to its fullest extent. Because smartphones and connectivity are changing the way travelers behave, airlines have the opportunity to compliment this behavior and grow their revenues in the process. The recently announced OnTouch® Concierge mobile application allows airlines to provide their customers with access to their branded onboard stores via their smartphone, where they can purchase a variety of goods and services including meals, movies, ground transportation, theatre tickets and gifts, and generally products and services that today’s travelers are looking for other than traditional duty-free items.

ALMOST ONBOARD (AT THE GATE) Though many opportunities for airline revenue growth hinge upon extending a passenger’s interaction with the airline brand as far up and down the travel chain as possible, the average traveler’s interaction with the airplane itself is only a tiny fraction of any given journey. Add to this fact the increase, in recent years, of time spent in the airport not due to any action on the part of airlines (regulatory guidelines, weather delays), and the gate space suddenly becomes a ripe area for revenue growth. Travelers have called for this themselves. Offering destination-based products and services targeted at travelers at the gate, pre-flight, allows airlines to implement these new ancillary revenue/retail initiatives free of any potential barriers that may be present onboard.

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THE RETAIL STORE AT 35,000 FEET

STREAMLINING PAYMENTS: EFFICIENCY, SECURITY, TECHNOLOGY Many of the retail growth strategies described here are enabled by handheld POS devices and efficient new technology. In order for any of these strategies to be true growth engines for airlines, however, the method for collecting payment must be as seamless, consumer-friendly, fraud resistant, and secure as possible. GuestLogix has been at the forefront of developing this capability for airlines. And part of that leadership stems from the company’s global payments process and presence. Working with airlines in North America, Europe, the Middle East and Asia-Pacific, that flexibility leaves us better able to respond to emerging technology and be aware of evolving security and card scheme risks. “Today’s travelers, flying at 600+ miles an hour to literally any point in the world, means that accepting multiple payment mediums and methods is a must. Travelers must be enabled to transact anywhere, anytime, and in any currency, coupon or loyalty card, or with major credit cards” including: Visa credit and debit, MasterCard credit and debit, American Express, Discover, Diners International, JCB, and China Union Pay. Moreover, our global payments process is tech flexible: payments can be received via Chip and PIN transactions, card swipe, contactless cards, Near Field Communication (NFC) and e-Commerce transaction, (mobile). And while no traveler appreciates a declined card, payment re-submission must also be seamless, but safe. For instance, the airline industry’s first handheld point-of-sale (POS) device that looks and behaves like a smartphone was launched in December of 2010, however a new device, the UBITA, represents a next-step departure from the traditional POS machines currently in service with most airlines, and enables airlines to maximize sales and revenue opportunities in their onboard stores as well as at other travel touch points such as the lounge or departure gate with contactless payment capability, as well as Wi-Fi, Bluetooth and RFID connectivity, and is designed to accept any payment type. A working model of the new device will be ready for certifications later this month, with devices available for shipping worldwide in May 2012. The UBITA is supported by GuestLogix’ OnTouch® Technology Platform, which powers the creation, operation and management of the onboard store and retail environment. The UBITA features a lighter, streamlined design and supports the MS Windows, Android and Intel/Samsung architecture providing for a variety of integrated mobile applications. At only 70x150x24mm, GuestLogix' new device is a fraction of the size of other handheld POS devices and significantly lighter; and, with its increased battery power, it is able to hold a full charge through a full day of continued use. While the online and mobile booking Asia-Pacific segment remains in its nascent stages, it was still expected to reach a value of $51.6 billion in 2011, growing by 30 to 40% in 2012. In other words, for airlines and their third-party ancillary providers, the time to engage the new, mobile, young, middle class and tech-savvy Asia-Pacific traveler is now – before the market fully matures. 48mm 80mm

35mm

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ANCILLARY REVENUES: COMING IN FOR AN EARLY LANDING From the first attempts at unbundling the standard airfare by low cost airlines more than a decade ago to the full-fledged, wholesale adoption of incremental fees and commission-based ancillaries of today, ancillary revenues have assumed a central position in most airlines’ business models – not just in the cabin as a 35,000 ft. retail store, but at multiple touch points in the traveler experience, beginning before the gate and not concluding until the traveler has reached his or her hotel. But as with most evolutions and transformation - in all industries, not just aviation - they have been spurred by significant advances in technology and a rise in consumer expectations for service. When it comes to Asia-Pacific travelers those expectations are rising to almost “demand it” levels. A recent survey (August 2011) by Boeing and the Global Business Travel Association, confirms this point. The study found that Asians are already the most tech-savvy fliers, with 48% of survey respondents using Facebook or Twitter in travel planning versus 10% for US travelers. Many, the survey found, valued access to in-flight Wi-Fi and AC power adaptors, presumably for their portable mobile devices, than even the in-fight entertainment offerings. To be sure, without technological innovation, ancillary revenue programs would still be in their infancy, and they certainly wouldn’t be the lucrative lifeblood we are seeing bolstering balance sheets today, nor would they be as effective in introducing the Asia-Pacific traveling set to the airline retail experience.

TRAVELERS BECOME CONSUMERS BECOME LONG-TERM BUYERS To succeed, airlines must rethink their traditional relationship with travelers, doing their homework to better understand and learn Asia-Pacific traveler needs, wants, and desires. In the retail environment, everytime a consumer is treated well and provided exceptional service they are more apt to return. Airlines must master the art of selling more than just tickets. The relationship must shift from airlines and passengers to marketers and consumers. Passengers, who are encouraged to become consumers, ultimately become long-term buyers and a consistent source of non-ticketed revenue. Repositioning themselves as retailers with a travel-relevant offering, airlines can elevate their relationship with customers, and raise their profile as an airline of choice, especially in a region still new to “outside” airlines. Delivering a customer experience that is personalized, reliable and focused on the specific offers for the traveler will increase traveler loyalty, which will translate into sustained ancillary revenue from additional products and services in a recurring fashion. Ultimately, the question airlines must resolve is not “to sell or not to sell” but rather “what to sell and how to sell it.” It’s a question that can be answered through the business intelligence analytics gained through point of sale and onboard technology, giving airlines an at-a-glance view of trends in cash, credit and other forms of payment, as well as from the item’s purchased side, a “what’s hot” and “what’s not” snapshot. Armed with that level of real-time instant customer-traveler knowledge leaves airlines efficient and nimble enough to quickly modify their ancillary strategy. Airline travelers may be a captive audience, (whether they’re at the gate or in the cabin) but nothing will compel them to buy unless a product or service is presented to them properly. Real value for both the consumer and the airline can only occur when the airline focuses on the full customer relationship, and on turning travelers into consumers. Only at this point can an airline hope to meet its customers’ unarticulated needs and begin to build consumer - not traveler - loyalty. The Asia-Pacific region continues to amaze the world with its economic prowess and educational and middle class gains. But as an almost Wild West era of unbridled growth yields to maturity, you can bet that for airlines, the coming year of unmatched opportunity and their own brand of expansion, will not come again. Failure to embrace this new and exciting region now might leave an airline that pursues such a foolhardy approach cut off from nearly half the planet’s traveling population. It doesn’t take rocket science to conclude that is a poor approach and not smart business.

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COMMODORE PERRY WOULD BE PROUD On his maiden voyage to Japan in 1853 Commodore Perry, with the blessing of the US government, sought and achieved a major goal: the granting of American access to Japanese ports for the purposes of selling commercial goods. To sweeten the deal, Perry brought with him a wealth of yet more goods, including: whiskey, muskets, a telescope, and one locomotive. The degree in which commerce was anchored to Perry’s voyage, as evidenced by his inventory, speaks to the centuries-long desire to shift the traveler mindset: travelers aren’t just passive participants in some voyage from point A to point B. Rather they are, and have always been receptive to the onboard retail environment, whether that was through 19th century shipping lanes or through today’s 600-plus mile per hour commercial airlines. In keeping with the digital and mobile technology at the heart of these airline retail and regional demographic changes, it’s fitting, perhaps, that along with trains, beverages and weaponry, Perry sent along something else: two telegraph machines and four bundles of telegraph wires. As if predicting the vast consumer electronic changes ahead, just five years after Perry’s visit, the first transatlantic telegraph cable opened for business between North America and Europe. Just as the telegraph was rapidly reshaping the 19th century technological landscape, on-board technology is having a similar impact on travelers today. Asia Pacific travelers are tech-savvy, mobile-enabled, wealthier than ever before and are eager to spend their dollars in-flight and throughout their travel experience. After a challenging decade that saw external price fluctuations, surging fuel costs, and diminished profits for airlines, it’s truly humbling and heartening, not to mention spectacular, that it’s the people – people who have worked themselves from poverty to plenty – and not government agencies, or salespeople, or supranational organizations like the World Trade Organization, whose broadening economic, political, and social enlightenment is the engine of growth and expansion refueling a sense of purpose and commitment to airline travelers, all the while inspiring one of the industry’s greatest commercial opportunities. The onboard retail store might be a 35,000 ft. event, but thanks to the latest mobile and point-of-sale technology solutions, (along with the business intelligence metrics to fully illuminate travelers’ shopping needs, wants, and desires) it’s an entirely ground-level personalized experience. In fact, it makes you want to reach for the sky, doesn’t it?  At GuestLogix, we already have. Brett Proud : EVP, New Markets & Products

GuestLogix Inc. GuestLogix is the leading global provider of onboard store technology which helps airlines build and manage onboard retail operations tailored to their needs and their passengers. Serving 40% of the global airline passenger traffic, GuestLogix has become a trusted par tner to airlines around the world. The Company is headquar tered in Toronto, Canada and maintains sales and suppor t facilities in the US, UK, Singapore, and S. Korea. GuestLogix is publicly traded on The Toronto Stock Exchange (Symbol: GXI). More information is available at guestlogix.com. HEAD OFFICE EMEA AMERICAS ASIA-PACIFIC

111 Peter Street, Suite 302, Toronto, ON M5V 2H1 Lily Hill House, Lily Hill Road, Bracknell, Berkshire RG12 2SJ Quorom Place, 4901 Quorum Drive, Suite 565, Dallas Texas 75254 #02-01 Fuller ton Road, Singapore, 049213

Tel: +1 416 642 0349 Tel: +44 1344 206 902 Tel: +1 214 302 8942 Tel: +65 6832 5502

SALES INQUIRIES sales@guestlogix.com PLEASE VISIT www.ontouch.com


SPIRITS REPORT

Continued innovation

by

Ryan White

Diageo gives whisky lovers something to talk about by adding two aspirational expressions to the revered Johnnie Walker range iageo is perhaps best known for the unprecedented worldwide success of Johnnie Walker Blended Scotch Whisky. Just ahead of this year’s APOT.Asia Forum

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Diageo announced two new developments that take the legacy of John Walker to new heights: Johnnie Walker Blue Label – The Casks Edition and Johnnie Walker Platinum Label.

Rarity redefined A new limited edition release of the world’s leading blended Scotch whisky will be released exclusively in global travel retail: Johnnie Walker Blue Label – The Casks Edition. Crafted from some of Diageo’s rarest casks, each noted for their intensity and depth of flavor, this special edition, bottled at 55.8% ABV, has intensified wood flavors and “is a tribute to the perfect harmony of the oak casks used in the blending of Johnnie Walker Blue Label,” says Diageo. “This limited edition is a chance to enjoy the remarkable experience of Johnnie Walker Blue Label in a new way,” says Johnnie Walker Master Blender Jim Beveridge “Only one in ten thousand of our casks have sufficient character for Johnnie Walker Blue Label and in creating this special edition we really wanted to showcase the incredible flavors that come from the casks themselves. The flavors drawn from these carefully selected casks have inten-

sified to produce a robust and powerfully flavored blended Scotch whisky that has rich woody notes, deep smoke, traces of spice and a long, lingering oak finish.” Produced in limited quantities and blended in small batches, the bold blend is a contemporary expression of the powerful 19th century character pioneered by the Walker family, created for true connoisseurs who are seeking new depths of flavor. “Johnnie Walker Blue Label – The Casks Edition is a Scotch whisky with a remarkably powerful flavor, the result of almost two centuries of unbroken blending expertise,” explains Steve White, Marketing Director, Diageo GTME. “This limited edition release is a rare opportunity to enjoy a bold amplification of the powerful cask flavors contained in Johnnie Walker Blue Label—it is rarity redefined.”

Precious metal

Diageo’s second new addition to the Johnnie Walker range is Johnnie Walker Platinum Label. Inspired by the Walker family’s historic tradition of creating exclusive “private blends” for favored customers, directors of the company and select private gatherings, Johnnie Walker Platinum Label has been crafted by Jim Beveridge “for today’s increasingly sophisticated global consumers—the ‘new whisky set’—to enjoy at their own intimate gatherings,” says Diageo. It is a delicate, smoky blend that embodies the characteristic full flavors of the Johnnie Walker range of blended Scotch whiskies. “Like the rare and precious metal after which it is named, Johnnie Walker Platinum Label is rich and refined, delivering the distinctive depth and complexity that is synonymous with Johnnie Walker,” Beveridge explains. “ In fact, I believe that if John Walker were to create a whisky today, Johnnie Walker Platinum Label would be the result. It is a bold, intense and smooth blend, crafted from some of our most treasured

whiskies, for the evolving tastes of today’s global whisky consumer.” “Johnnie Walker Platinum Label is the richest, most precious crafted 18 year old blended Scotch whisky John Walker & Sons has ever created—its price point reflects this,” says White. “We believe that consumers will quickly develop a real affinity for Johnnie Walker Platinum Label and that it will offer real value for our trade partners. “It is a thoroughly modern interpretation of the ‘private blends’ that our company has produced from the very beginning and is a contemporary blended Scotch whisky that is perfect for exclusive occasions,” he added. Johnnie Walker Platinum Label is available now in 75cl size in limited Asian Duty Free locations with a global Duty Free launch of the 1L variant from June 2012. Priced at an RRP of USD $100 for 1 liter in duty free, Johnnie Walker Platinum Label is a premium whisky that will sit towards the top end of the Johnnie Walker range.

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Representative from Warsteiner International KG raise a glass at the 27th Annual MHA Trade Show and Conference in Orlando, Florida

Attendance up for 27th Annual Marine

Hotel Association Conference and Tradeshow he Marine Hotel Association (MHA) recently held it’s highly sadly been called away the day before and was unable to speak. anticipated 27th Annual Conference and Trade Show at the vast McGirl revealed that the Association was anticipating an impressive and newly renovated Peabody Hotel in Orlando Florida from attendance of more than 1000 delegates (1012 being the final count) in April 15-17. As the premier event for the Marine Hotel indus- 2012 and 40 more booths than in 2011; representing roughly 25% try, the Florida gathering is a uniquely inclusive forum for growth. This increase is also the result of the group’s efforts to diversify suppliers of food, beverage and other hotel products for the cruise indus- and appeal to a new cast of players. try to interact with ship chandlers and cruise line buyers in a relaxed yet “The mix of vendors is becoming more diverse, although we will always elegant programme of activities. be heavier on the food and beverage side, just because it's the largest and “The turnout on the cruise line side was excellent and we believe the so diverse within its own segment,” Pritchard explains. “We are seeing vendors were pleased with the activity on the trade floor,” revealed Car- more interest from software providers, IT and other more technical oline Pritchard, Executive Director for the MHA. “No matter what the areas. Our goal is to broaden the scope of the mix with more of the non business segment is, it's always the challenge for any industry to make companies and have a little more balance and variety.” sure that the exhibitors enjoy a worthwhile return on their investMcGirl touched on the economic challenges faced by the industry and ment. We at MHA have always attached great importance to that.” also commented briefly on the Costa Concordia tragedy, reminding all The three day event kicked off with the annual MillerCoors sponsored to focus on the heroic efforts of many, rather than the poor judgement golf tournament played at the Shingle Creek Golf Club. Participants were of few. “We are an incredibly resilient group, as evidenced by the attentreated to a day of friendly ‘best ball’ play, complete with transportation dance of this show,” he said, adding that in the months to come “safety for golfers, catered lunch and an array of prizes to be won. Delegate reg- and compliance will be a significantly stronger focus.” istration and preparation time for the record setting 240 trade On the evening of April 16, hundreds of delegates gathered for food, show exhibitors coincided with the golf tournament and concocktails and networking in the very well attended Welcome Reception tinued until supper time, as did the traditional silent auction, which remained open to bids until the afternoon of April 16. On the evening of April 16, hundreds of delegates gathered for food, cocktails and networking in the very well attended Welcome Reception, which took place in the fading Orlando sunshine on the upper pool deck of the Peabody. To many in attendance, the notable increase in guests at this opening cocktail was an encouraging sign of growth in the organization and in the industry itself. Sponsored by the J.M. Smucker Company both days, breakfast on April 16 began promptly at eight, giving exhibitors time fuel up before putting the finishing touched on their stands. An hour later, John McGirl of Royal Caribbean International, the not-for-profit Association’s Vice President, took the podium and welcomed delegates on behalf of MHA President Alvin Dennis of Norwegian Cruise Lines, who had

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Photos courtesy of Eric Churchill, Photo Impact Inc.

EVENT COVERAGE


John McGirl, of Royal Caribbean International and Vice President of the MHA

Back to Barcelona

The show program included a keynote speaker for both trade show days. On April 15th, Horst Schulze, Founder and CEO of Ritz Carlton entertained delegates with the remarkable story of how he began his illustrious career bussing tables and washing dishes at an upscale hotel that his family would have never dreamed of staying at. His total commitment to uncompromising service is indeed inspiring, and he left everyone with much to think about in terms of providing the best possible experience to customers and carefully selecting employees to share in the goals and passion of an organization. “We are ladies and gentlemen serving ladies and gentlemen,” said Schulze. “Service is about truly caring for others and it begins the instant we make contact with the customer, or the instant the customer perceives they have made contact with us.”

In November 2010 the MHA hosted its inaugural European Conference and Trade Show at the picturesque Hotel Arts in Barcelona. The event attracted an impressive 500 delegated and 80 vendors representing countries from around the globe. Much like the annual Florida event each spring, the European gathering featured on-point yet entertaining keynotes, quality trade floor opportunities and numerous social engagements to facilitate relaxed interaction between delegates. In Orlando last week, it was announced that 2013 will see the second such event, to take place once more at the Hotel Arts from November 5-7. “We are seeing a lot of enthusiasm for the next Barcelona event,” says Pritchard. “The event was always designed to give the European companies their time on their turf and to provide the same kind of access to the European based cruise lines, river boats and ferries as we do here in the U.S. We had given serious thought as to whether a repeat performance would be the right approach given the all over fragility of the economy, but we have been encouraged to move forward with this next event in 2013.”


Delicious Frutti di Mare Treasure Pasta The new way of cooking Company Name: iPinium Company Location: Miami, FL Description: iPinium’s unique patented aluminum alloy products allow for optimal absorption, storage and transmission of heat. iPinium enables any cook to grill almost any food in the oven, including steak, poultry, fish and vegetables without using any cooking fat. It is also offers a healthier, cleaner, and easier alternative to electric and indoor grills.

Company Name: The Pasta Guys Company Location: Fort Lauderdale, FL Description: Offering fresh, natural pasta made with true homemade taste, The Pasta Guys presents their Frutti di Mare Treasure, a specialty pasta made with whole shrimps, bay scallops and shiitake mushrooms sautéed with sherry wine, wrapped in flaked parsley pasta. This product is also flash frozen in a nitrogen tunnel freezer, leaving no residual water crystals and instead, mouthfuls of flavour.

Fresh gourmet seafood Company Name: Snorre Foods Company Location: Singapore Description: As a premium quality fish and seafood wholesale supplier based in Singapore, Snorre Foods distributes their Scandinavian-sourced products to the Asian regions inclusing Japan, Korea, Hong Kong, Brunei, Middle East, China, Sri Lanka, India, Indonesia, Malaysia, Thailand and The Philippines. With a variety of fresh gourmet seafood available, Snorre offers only the highest quality for customers to enjoy.

Personalized brew to go

Luxury sandwiches Company Name: En Route Company Location: Berkshire, UK Description: En Route International has recently developed a new range of luxury mini sandwiches, which are also handmade in France using premium quality breads and fillings. They are available in two options; a duo of mini Brioche with Chicken Caesar, and Pain Forestier with smoked salmon and cream cheese, or a vegetarian duo option that offers Brioche with Marinated Tomato, and a Fougasse with goat cheese and pesto.

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Practical and functional serving set Company Name: Revol Company Location: Cumming, GA Description: REVOL introduces the new BASALT Collection, a culinary all-black porcelain collection with a natural slate design imitation. The new line includes a wide range of trays and plates available in different sizes and shapes, with smooth or sculptured edges. Any piece can also become personalized by writing on it with chalk – perfect for an onboard mini menu. Scratch and chip free, the BASALT Collection is 100% food friendly and dishwasher safe.

JUNE 2012

Company Name: Nestlé Company Location: Glendale, CA Description: NESCAFÉ® introduces Nescafé Memento, small powder packs which conveniently allow travelers on-the-go to enjoy their favorite creamy cappuccino by simply by adding water. Featuring coffee house quality flavor and foam that lasts until the very last sip, Nescafé Memento is available in Cappuccino, Mocha and Caramel Latte. Also, it is only 100 calories per cup.


Airware BOB

Alcohol-free hand sanitizing towelette Company Name: Kleenhanz速 Company Location: San Antonio, Texas Description: The perfect solution for handwashing on-the-go, Kleenhanz速 is a alcohol-free, hand cleaning and sanitizing towelette that kills 99.99% of germs on contact. Leaving hands feeling soft and smooth, this product is ideal for travelling since it provides long lasting germ protection and is also antimicrobial, hypoallergenic and 99% water based.

Premium ready-to-drink alcoholic cocktails Company Name: Kiss Mix Company Location: Godalming, Surrey, UK Description: Kiss Mix, a premium selection of ready-to-drink alcoholic cocktails, will be expanding its collection by adding new flavors to the lineup, including Margarita, Bourbon and Cola and more. Kiss Mix offers numerous benefits, such as convenient lightweight packaging, and a long shelf life with a two year expiry.

Company Name: Airware AVV Company Location: Istanbul, Turkey Description: Airware introduces Drawer Steps, part of a range of newly designed products that streamline operations for airlines looking to maximize and ancillary revenues through the implementation of buy-on- board offerings. This product saves valuable space in the airline trolley, while allowing passengers to view available products, while simplifying the job of flight crew at the same time.


WHAT’S HOT! I A P O T . A S I A Delicious dressing Company Name: Birch & Waite Company Location: Marrickville NSW, Australia Description: Birch & Waite has created a balanced blend of balsamic vinegar and premium olive oil to make their very own Balsamic Vinaigrette Dressing. All Birch & Waite dressings are made with high quality, premium ingredients and are available in a range of sizes including bulk and portion control packs. The dressings are manufactured without gluten containing ingredients or MSG.

Modern headphones Company Name: Inflight Direct Company Location: Middletown, Rhode Island Description: Inflight Direct now offers a new design for ear clip earphones with the ID-228. This new innovative design offers a new spin to traditional IFE headphones with a modern sleek appearance. It also has superior comfort and quality for every passenger to enjoy.

Delicious baked apple snacks

Southeast Asian herb and spice combinations

BISCOTTEA®

Company Name: Albert Uster Imports Company Location: Washington, USA Description: AUI (Albert Uster Imports), a gourmet food company importing over 1,300 sweet and savory products, introduces Kumar’s Curries and Bumbu’s, an authentic sauce which offers a wealth of flavor and aroma. Chef and founder Suresh Kumar’s sauces are inspired by India, Indonesia, and Thailand and offer an authentic taste experience.

Company Name: BISCOTTEA® Company Location: Issaquah, WA Description: Baked with real tea and coffee in each buttery square, BISCOTTEA ® is the perfect treat to be paired with a wide range of global teas and coffees. Containing all natural and fair-traded ingredients, BISCOTTEA ® is available in Earl Grey, Chai, Mint, Blueberry, and African Honeybush.

Company Name: Micona Company Location: Miami, Florida Description: Micona introduces Apple Rumble, a new line of baked apple snacks that are naturally sweet with no added sugar, cholesterol, GMO or preservatives. Available in five flavors; Original, Caramel, Cinnamon, Blackberry and Strawberry, these crunchy snacks are also gluten free, Kosher Certified and contain less than 90 calories, along with two apple servings in each and every bag.

Fun activities for kids on the go Company Name: UNISET Company Location: Herlev, Denmark Description: UNISET’s award winning travel entertainment range is developed to engage the mind of travelling children and to help ensure that parents, and fellow travelers enjoy a relaxing journey while onboard. With a variety of products available, UNISET’s unique range of products help to create a pleasant travel atmosphere, regardless of the length of the flight or time of day. All UNISET travel toys are safe, tested and high quality – plus they can also be customized with airline branded logo’s as well.


Unique bone chinaware Company Name: ZIBO Rainbow Company Location: Shandong, China Description: ZIBO Rainbow presents a unique type of soft-paste porcelain called bone chinaware, which is made from clay, feldspar and quartz. Bone chinaware offers several advantages for in-flight cabin use, such as a superior strength, low weight, clarity and brightness. This unique chinaware is also well known and widely used in airlines all over the world, benefitting from its good quality in weight and high grade.

Truly healthy products Company Name: Fly Fit Company Location: Amsterdam, The Netherlands Description: Vitalit Laboratories develops truly healthy products, based on pure and natural superfruit ingredients, which help to increase the fitness of passengers and crew when they need it most. In cooperation with DSM*, Fly Fit has also recently developed a new tasty breakthrough beverage called FlyFit Flow速, a delicious drink containing Fruitflow, the first ingredient scientifically proven to contribute to healthy blood flow.

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ASSOCIATION NEWS

IFEC China Summit set for end of June or the past five years, GIS Events and the WAEA/APEX Associations have held a two-day inflight entertainment summit in China. This year, organizers at GIS Events and APEX say visitors to the June 27-28 event at the New Otani Chang Fu Gong Hotel in Beijing will be able to discuss the “big transition year” that marked IFE around the world in 2011. From new handheld options, such as the Samsung players now on American Airlines, to the half dozen carriers testing wireless IFE in the Asia-Pacific region, to the mid-November plans of Air China to offer wireless IFE service to passengers on flights between Beijing and Chengdu and Beijing and Shanghai, the new intriguing aspects of IFEC will be part of the two days of discussion. This and more all comes as the movement of China aviation into the forefront of air travel continues unabated. Improvements of

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a digital nature are also being made in the country’s airports. At the end of May, Boingo Wireless announced the launch of the company’s managed Wi-Fi services at Beijing Capital International (PEK), the world's second busiest airport. “China will boost its support of the civil aviation sector with favorable new policies and an investment of up to RMB1.5 trillion (US$230 billion) over the next 5 years,” said an overview of the event on the GIS Events website. In addition to the yearly IFEC Summit, GIS Events also organizes the annual airline catering summits, the next set for September in Beijing. During the two days, discussions will trace the future of IFE in China and beyond. Discussions on the morning of June 27 will cover new technology for Air China passengers, power systems for IFEC, the next generation

of inflight entertainment and a panel discussion on connectivity and streaming. The afternoon will be taken up with technical discussions on satellite-based connectivity, seatback screen capability and a session on brands and enhancing service quality. Day two starts off with passenger related discussions on satisfying passenger comfort with IFEC and opportunities for ancillary revenue. The future for inflight magazines in the digital age will be discussed just before the morning break. The final half day will kick off with topics that include business travelers and wireless communication, sales opportunities for portable devices, security topics and will end with a panel discussion on the challenges and opportunities that connectivity brings to IFE content management. Nearly a dozen speakers have currently been selected. For more information, check the GIS events website at www.gisevents.com/2012.ifec.

NBAA welcomes flight attendants for 17th year hough a flight attendant is first and foremost a trained safety professional, plenty of other more mundane topics, but pertinent to the airline catering industry will be part of the National Business Aircraft Association Flight Attendants/Flight Technicians Conference. The June 14-16 Annual Conference will be held at the Hyatt Regency Hotel in Chicago.

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Throughout the two days, several discussions will focus on careers in the business aviation field. The keynote speech for the two days will be Judith Bowman an educator, corporate speaker and an authority on people skills, professional presence and business protocol. Two sessions will be devoted to catering, which is also part of the flight attendant duties in the business aviation world. The afternoon of June 14 will feature a catering working

group meeting. On June 16, Alison Price of On Air Ltd. In London and representatives from Air Culinaire and Manny’s Catering in Mexico will be available to answer questions about catering of an international nature and effective ways to communicate catering needs across the business aviation industry. More information on the Flight Attendants/ Flight Technicians Conference can be found at: http://www.nbaa.org/events/fa-ft/2012/

UPCOMING EVENTS 2012 IFSA/APOT Asia/Pacific Conference, June 12-14, Incheon, South Korea. For more information Contact IFSA at (404) 252-3663, e-mail: fsa@kellencompany.com Ancillary Revenue World, Europe, June 26-28, London. For more information, contact Terrapinn Lt.d, at 44 (0) 20 7092 1000 or e-mail: enquiry.uk@terrapinn.com IFSA Annual Conference and Exhibition, September 18-20, Long Beach Convention Center. For more information Contact IFSA at (404) 252-3663, e-mail: ifsa@kellencompany.com Aircraft Interiors Expo, Americas, September 25-27, Seattle. For more information, call 203 840-5680 or email: aircraftinteriorsus@reedexpo.com

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JUNE 2012

Airline Passenger Experience Association 2012 Annual Expo, September 17-20, Long Beach Convention Center. For more information contact APEX at (212) 297 – 2177, e-mail: info@apex.aero    International Travel Catering Association/SIAL Middle East Trade Show and Networking Forum, November 26-28, Abu Dhabi. For more information, contact Joanne Cook at Joanne.cook@turretme.com or call +971 4 328 4443

2013 World Travel Catering and Aircraft Interiors Expo, April 9-11, Hamburg. For more information call: +49 (0) 211 901910, e-mail: info@reedexpo.de

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