Asian airports dominate Skytrax best rankings

Courtesy Changi Airport Group

Not surprising that Singapore Changi clinched Skytrax’s 2017 Best Airport award for the fifth year running, commended for having the best leisure activities. As a hub airport, it is how best travellers are relieved of the stress of travel that will garner an airport favourable ratings. Changi is a favourite transit airport with its array of amenities, restaurants and shops.

What else can we infer from the survey said to be based on 13.82 million responses from 105 different nationalities, conducted from July 2016 to Feb 2017?

The top spots are held by familiar names of the last five to six years – Incheon International (3rd), Munich (4th), Hong Kong International (5th), Munich (4th), Zurich (8th) and London Heathrow (9th).

Incheon was ranked the best airport in 2012 before Changi took over in 2013, and until this year, it was a close second.

Special mention should be made of London Heathrow, which was the world’s busiest airport for international traffic until Dubai took the honours from it for two years now – Dubai did not make it to the list as being among the best.

It would appear that performance consistency is key, yet stagnation can lead to one losing the competitive edge. Changi has always prided itself as being innovative, constantly upgrading and expanding its facilities.

Making strides are Tokyo Haneda (2nd) and Doha’s Hamad International (6th). Tokyo Haneda was ranked 9th in 2013, 5th in 2015, 4th last year and 2nd this year. Hamad entered the top ten list at the bottom last year and made it up to 6th this year.

Besides Tokyo Haneda, there is a second Japanese airport in the list, namely Centrair Nagoya (7th). Tokyo Narita and Kansai Osaka were also ranked in previous years. It does say a lot about Japanese airport management.

It is no surprise that four Japanese airports are ranked among the top ten cleanest airports – Tokyo Haneda (1st), Centrair Nagoya (3rd), Tokyo Narita (5th) and Kansai Osaka (9th). Except for Zurich (8th) and Hamad (10th), this list is dominated by Asian airports, the others being Incheon (2nd), Taiwan’s Taoyuan (4th), Changi (6th) and Hong Kong (7th).

Similarly, the best airport staff service list is made up of nine Asian airports with the exeption of Vienna (10th): Taoyuan (1st), Incheon (2nd), Tokyo Haneda (3rd), Changi (4th), Centrair Nagoya (5th), Kansai Osaka (6th), Kuala Lupur International (7th), Tokyo Narita (8th) and Hong Kong (9th). Clearly service is an Asian strength.

One other Asian airport deserves some mention as the most improved airport – Jakarta’s Soekarno-Hatta Airport. Will it make it to the list as one of the world’s best?

By bow you have noticed that no airport outside Asia, the Middle East and Europe are listed in this year’s Skytrax top ten/ The only outsider was Vancouver International which was ranked 9th in 2012, 8th in 2013 and 9th in 2014. Yet again, this does not come as a surprise.

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Garuda Indonesia poised to expand

IT came so timely that following the opening of the new Terminal 3 at Jakarta’s Soekarno-Hatta International Airport and its declared ambition to rival Singapore Changi Airport and Kuala Lumpur International Airport in attracting international traffic, Indonesian carriers have been cleared to resume flights to the United States after an absence of nine years.

The Federal Aviation Administration (FAA) is satisfied that Indonesia is complying with International Civil Aviation Civil Organization (ICAO) safety standards. Formal final approval from Department of Transport (DOT) and FAA is expected soon.

Indonesia has been plagued by a number of air mishaps involving home-based airlines Lion Air, Mandala Airlines and Garuda, particularly in the years before 2007 when the US imposed a ban on its operations on its soil. More recently in 2014, Indonesia AirAsia crashed into the Java Sea, killing all 162 people on board.

The US lift of the ban came after the European Union had lifted its ban on three other Indonesia airlines – Lion Air, Batik Air and Citilink – in June this year.

Garuda AFP

With the US and Europe open, Garuda for one, if not the other Indonesian carriers as yet, is poised to expand. The Indonesian flag carrier has launched direct services to London (Gatwick) and is planning to launch services to New York (JFK) and Los Angeles next year. And if the Sytrax survey for the last two years (2014 and 2015) is anything to go by for its success, the airline was ranked among the world`s top ten airlines which include other Asian airlines namely Singapore Airlines, Cathay Pacific and EVA Air.

Soekarno-Hatta International Airport ready to take on regional competition

Photograph by Gunawan Kartapranato, courtesy Wikimedia Commons

Photograph by Gunawan Kartapranato, courtesy Wikimedia Commons

Last week a new 5-trillion rupiah (US$382 million) terminal opened at Indonesia’s Soekarno-Hatta International Airport – also known as Cengkareng Airport (CGK) – in Jakarta, capable of handling about 25 million passengers a year when fully operational by March next year.

The airport is already handling more than 60 million passengers annually, almost three times the 22 million originally planned for. The capacity was subsequently expanded to 38 million. With a large domestic market, CGK ranked as the world’s 17th busiest airport.

Indonesian officials said CGK would be able to rival the neighbouring airports of Changi (Singapore) and Kuala Lumpur International (KLIA) (Malaysia) in attracting international passengers to transit at Jakarta. Rivalry in the region is to be expected. Changi has long been the indisputable airport of choice for transit and transfer traffic, and CGK is increasingly looking at retaining traffic out of Indonesia for the long haul direct from its base. Why, for example, should an Indonesian travel to London via Changi and not direct from CGK?

Changi has the edge in cutting edge technology, a reputation for efficiency and excellent customer service, and a wide spectrum of connectivity. Whereas in the past, its closest rivals in the region used to be KLIA and Bangkok’s Suvernabhumi (Don Muang before that), the challenge today comes from farther afield in Hong Kong International (HKIA) and Dubai International. It tells one things: the home-based carrier plays an important role in enhancing the advantage of the airport – Singapore Airlines in the case of Changi, Cathay in the case of HKIA and Emirates, Dubai International. So CGK may get a boost from Indonesian flag carrier Garuda as it continues to renew and grow.

Changi for one does not rest on its laurels as it continually upgrades and expands its facilities. But make no bones about CGK’s ambition. To put it more modestly, Ituk Herarindri, director of facilities of Angkasa Pura 2 which operates CGK, said: “We are planning it to be a hub like Singapore and Kuala Lumpur.”

Lion Air moves transit hub closer to Changi Airport

Courtesy Reuters

Courtesy Reuters


LION AIR is clearly making moves to be a prominent player when Asean Open Skies 2015 kicks in, especially when it is expected that home country Indonesia, which is the most populous nation in the region, will experience the highest growth in air movements as a result of the liberalization.

Lion Air has plans to grow the airport on Batam island – a stone’s throw from Singapore – as an alternative transit hub to the main but increasingly congested Soekarno-Hatta Airport in Jakarta. From there, the airline hopes to fly to destinations beyond Indonesia, such as Guangzhou, Hong Kong, Bangkok, Jeddah, New Delhi and Mumbai.

Lion Air president Rusdi Kirana said: “The distance is actually shorter if you transit in Batam rather than flying south to Jakarta to transit. The shorter flying time makes flying more convenient for passengers and it means aircraft burn less fuel, leading to significant cost savings.”

Considering Indonesia’s multi-island geography, it may not matter where the transit takes place if the cost is kept low and the convenience of connection is not that much worse off. There is no reason why Lion Air cannot use Batam for its spoke operations but only for its flights. Jakarta will continue to be favored by the major legacy airlines and the added advantage of accessibility by land.

But what is more interesting about Lion Air’s move Batam’s proximity to Singapore’s Changi Airport. Is the airline looking at a siphoning possibility at lower costs in competition with airlines such as AirAsia which had for a long time been pestering the Singapore government to allow it to operate out of a domestic but separate base? Lion Air too has announced its intention to hub its flights at Changi with Open Skies, and Batam is near enough.

Boosting his proposal, Mr Kirana also announced Lion Air’s launch of a hangar on Batam to provide maintenance, repair and overhaul services, the first of four such hangars

Comeback kid Garuda Indonesia is Asean’s rising star

garuda imageEveryone loves a comeback kid, and Garuda Indonesia is the newest comeback kid on the aviation block.

The Indonesian flag-carrier has come a long way from a speckled past to becoming the new star of Asean. It is no mean feat for an airline that in June 2007 was banned (along with all other Indonesian carriers) by the European Union (EU) from flying to its member countries over safety issues, and that for a good 50 years or so it has all but maintained a very low profile.

In fact, we hear more of rival Lion Air – Indonesia’s second largest airline after Garuda – and its grand plans to expand across Asia with record plane orders. In the 60s, Garuda flew beyond the region to Amsterdam, Frankfurt, Rome and Prague in Europe, and to Honolulu and Los Angeles in the United States. Services to Amsterdam were resumed a year after the EU in 2009 lifted the ban, but services to the US had long ceased since 1997.

garuda image1 courtesy garuda
Image courtesy of Garuda Indonesia

In the 2013 Skytrax survey, Garuda Indonesia was listed among the world’s best 10 airlines. If that was not impressive enough, consider how it was also ranked fifth in the Asia category, behind Singapore Airlines (SIA), All Nippon Airways, Asiana Airlines and Cathay Pacific – ahead of some other presumably better known brands. There is more: Garuda was voted in the same survey as best economy class, and this is worthy of note considering that many top-rated airlines are reputed for their first and business class but not necessarily for economy which across the industry is increasingly becoming very much the same.

Surely the Indonesian flag carrier must be doing something right. Mr Emirsyah Satar, president and CEO whom I had the privilege to interview, attributed Garuda Indonesia’s success to a strategic 5-year transformation programme known as Qantum Leap implemented in 2009, the same year that the EU lifted its ban on the airline. The makeover gives Garuda a fresh corporate identity complete with new livery, a name change to Garuda Indonesia in full instead of merely Garuda, and new crew uniform. Embedded in the “Garuda Indonesia Experience” that it offers – typified by the warm hospitality inherent in the Indonesian culture at every point of customer contact – is the drive to improve customer’s perception.

emrisyah satar
Image courtesy of Garuda Indonesia

Mr Satar said: “Service experience is what sets us apart.” He added, “We want passengers to experience the warmth of the Indonesian hospitality whenever they fly with us. Before, we were lacking a distinct uniqueness and the idea behind the branding strategy in 2009 was to create a new culture for Garuda based on the traditions and values of Indonesia hospitality.”

What does the rise of the mythical bird to new heights mean to the competition in the region, particularly in the offing of the Asean Open Skies policy which is expected to be fully implemented in 2015?

First, regional carriers including SIA cannot afford to ignore the competition posed by Garuda Indonesia. Going forward, the airline is increasing not only its fleet but also capacity as it expands its network. It will offer more seats between Jakarta and Singapore, which is its largest destination outside Indonesia. Naturally, it can only mean that airlines currently operating the lucrative short route will have to fight harder to retain its market share or generate new demand, the latter case being good news for Changi Airport in terms of traffic growth.

Garuda Indonesia will also be introducing a direct service between Jakarta and London in February next year; the flight was originally scheduled for November this year but has been delayed because of limitations faced by Soekarno-Hatta International Airport. Mr Satar believed that Indonesia is a high growth market for the United Kingdom (UK), a market that is currently underserved. Considering the double-digit growth of traffic carried through other Asian hubs, Mr Satar was confident that Garuda Indonesia is in a dominant position to capture a good share of the market.

However, there is a less rosy flipside for other regional airlines and airports that have hitherto benefited from the connecting traffic of Indonesian travellers if more of them choose to fly direct from Jakarta instead. The impact may be softened by Garuda Indonesia’s scheduled landing at Gatwick instead of Heathrow, but it may all hinge upon how the airline packages its offer in light of the fluid global economy that has made cost a significant driver of consumer behaviour.

Second, product-wise Garuda Indonesia has made strides to match or be nearly as good as some of the best airlines in the industry. Mr Satar said: “It took us a lot of hard work and major restructuring over the last few years but we’re now finally back on track. Customers can continue looking forward to warm exceptional service, high safety standard and cutting-edge technology.” The airline boasts features that are no longer exclusive to its competitors such as comfortable ergonomic chairs, spacious leg room, flexible head rests, individual touch-screen LCDs equipped with Video-on-Demand (VOD) offering a range of movies, music, TV shows and games.

Third, Indonesia being the most populous member nation when Asean Open Skies kicks in should offer Garuda Indonesia home ground advantage. Mr Satar said the airline is in a strong position and ready for the competition. He dismissed Lion Air as a veritable competitor, insisting that Garuda Indonesia is a full-service carrier and “we’re not competing with the LCCs in the region”. Besides, the domestic market of 240 million people is large enough to admit more competition.

For the budget market, which looks set to grow with liberalization, Garuda Indonesia has its own budget subsidiary Citilink to compete with the like of Lion Air, AirAsia, Tigerair and Jetstar. The carrier has an ambitious growth plan to support a projected 19 million passengers by 2015, increase its fleet by another 75 planes to its current 26 by 2017, and operate beyond Indonesia to destinations in Southeast Asia in 2014 ahead of Asean Open Skies.

Garuda Indonesia will not be working alone, as it has decided to join the SkyTeam alliance, and the agreement will be officially formalized in March 2014. Is it any wonder why it has not opted to join Star Alliance of which SIA is a member or OneWorld of which Cathay Pacific is a member? It indicates the carrier’s serious intent to up the ante in competition with its regional rivals. It should be interesting to see how these other airlines react to Asean’s rising star.

You can read the full text of my interview with Mr Emirsyah Satar at http://www.aspireaviation.com.