Page 25 - Sphere No.31 (Jul 2012)

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Sphere 31
A good reAson for optimism is that
Asian aviation markets still have plenty of space to
grow. The staggering extent of China’s potential,
in particular, is best illustrated when compared
to more mature markets; in north America,
there are 17 aircraft per one million people, while
in China, the figure is only 1.3 aircraft per one
million people. Clearly, China has a long way to
go before it matches the density of networks and
passenger numbers currently seen in the United
states, presently the world’s largest domestic
aviation market, yet the distances are similar to
those between Chinese cities, making the potential
plain to see. to some extent, this potential is
being realised already, with the ranks of Chinese
domestic air travellers continuing to swell year-on-
year, reaching an average of 679,500 per day
in 2010.
of course, there are significant challenges
ahead for Chinese aviation in particular. The
emergence of high-speed railways as a major
development priority would seem the biggest
long-term threat. recent high profile incidents,
such as the fatal train collision near Wenzhou in
June 2011, may cast some doubt on the future of
high-speed rail as a viable alternative to air travel
– unsurprisingly, the accident caused a sudden
spike in demand for tickets on domestic air routes.
Yet despite these setbacks, surely the undeniable
glamour and rapid growth of high-speed rail poses
a real test of durability and competitiveness to the
domestic aviation industry.
According to norbert marx, general
manager of guangzhou Aircraft maintenance
engineering Co (gAmeCo), a guangzhou-
based aircraft maintenance joint venture
between HWL and China southern Airlines
(China southern), overall growth in
demand for transport services is such that
the airline industry can afford a degree
of optimism:
“of course, there will be competition on
some routes, but ultimately there will be enough
volume for both systems – rail and air – and
they will complement each other as passenger
numbers grow. High-speed rail is also costly to
build, and there are some connections where air
travel is more competitive, so it won’t slow down
development too much.”
As airlines expand their networks and
capabilities, so too must aviation support services.
Compared to a global growth rate of around
3.5 per cent, Chinese demand for such services is
increasing at an annual rate of around 10 per cent.
With such promising growth prospects, HWL’s
50 per cent stake in gAmeCo seems a
particularly astute holding – recognising that
no airline can operate without the assistance of
leading edge maintenance services to keep their
aircraft in top condition.
gAmeCo’s history is intertwined with
China’s development miracle. during the 1980s,
increasing numbers of new aircraft, including the
latest Airbus and Boeing models, arrived in the
country to meet the rapidly growing demand for
air travel. previously focused on soviet-produced
aircraft, China’s aviation industry lacked the
domestic technical capability to service all these
new models. Hutchison Whampoa (China)
Limited (Hutchison China), recognising the
huge business potential, came to an agreement
with the Civil Aviation Administration of China
(CAAC) to develop and expand such capabilities.
The result was the establishment in 1989 of
gAmeCo – a joint venture partnership
between Hutchison China, Lockheed martin
and China southern.
in 2002, following Lockheed martin’s sale
As airlines in most parts of the world tighten their seatbelts for market
turbulence, Asia remains a bright spot for global aviation. The region’s
airlines now carry a quarter of the world’s air travellers and 40 per cent
of global air freight – and growing – according to the Association of Asia
Pacific Airlines, with Chinese airlines alone accounting for 20 per cent
of new aircraft deliveries in 2010. Having anticipated this trend,
Hutchison’s Chinese joint venture for aircraft maintenance,
gAmeCo, is ready to fly higher. In flight, an aircraft
stretches by around
15 centimetres.
Airlines need leading
edge maintenance to keep
aircraft in top condition.