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From the
Chairman
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FACE
TO FACE
December 2000 Issue the bulletin  As many companies
this year struggled to keep their head above water on the tails of the Asian financial
crisis, 2000 really was a "Golden Dragon
Year" for Dragon Airlines. The airline continued to set new growth records throughout
the year. It added four aircraft to its fleet and placed orders for eight more, and it
moved into its new HK$900 million headquarters at Chek Lap Kok. With the "unwrapping
of a whole new fleet" to expand its services and network, and a new look to boot, the
airline looks to be well prepared to take off with the next cycle of growth in China and
Asia. Bulletin Editor Malcolm Ainsworth spoke with Dragon Airlines CEO Stanley Hui
on the airline's growth and plans to expand in the Mainland and intercontinental markets.
THE BULLETIN: In February this year you said that your goal is to more than double Dragonair 's fleet by the end of 2005. Will that expansion be part of passenger or freight services? And will that growth come from the mainland or international markets?STANLEY HUI: When we announced that in Singapore, we were referring to the passenger market. At that time we didn't have cargo services, but we have now decided to go into the all-cargo business, which started at the end of July this year. This [goal] now includes our freight plans, and some of the expansion will continue to build on our current strength and that is the Mainland market. Our main thrust is that we are unique in our coverage of the China market and we are going to build on this strength. On the freighter side, we are starting to go into the intercontinental side, with services to Amsterdam and Manchester and a freighter service running from Shanghai. Next year, we want to announce that the purchase of two Singapore combi-aircraft converted to freighters will start services to Xiamen, and those two [aircraft] will also increase our services into Europe, and destinations in China. We are looking at going into Xiamen and Osaka from next year. You fly to 17 Mainland destinations, and Xiamen next year will make it 18, do you have your eye on any others routes? We would like to do more in the northwest of China. We are looking at more destinations and more frequencies, but having said that we will also be looking at capacity and frequency [of existing services], especially where the market is strong, such as Shanghai and Beijing, and also those of slower markets. Does that mean you may reduce services on lower yield destinations? No, not at all. We will look at increasing capacity and frequency of important routes. Has the Civil Aviation Administration of China (CAAC) given you any restrictions which may limit your growth? Not particularly. Under the new arrangement [signed in February this year], it effectively gives us as much flexibility as we want. With more international airlines flying directly into China, do you think this will add to your competition? I think you have to take the bigger-picture view: more people are going into Mainland China, either directly or through Hong Kong. Hong Kong will continue to develop that Mainland-gateway route, and Hong Kong will continue to be a useful stopover. Do you have any plans to form alliances, code sharing or joint ventures with any airlines? We already have an agreement with MAS [Malaysian Airlines] on flights to Kota Kinabalu. In Mainland China we are exploring some possibilities. What will persuade you to form agreements with mainland airlines? Economics. We are looking at the slightly weaker routes, where if the two sides decide to put in more flights they can be profitable. I understand China 's aviation market is growing at over 20 per cent annually, do you think the Mainland can handle such rapid growth?I think definitely. A lot of the airports have improved -- some have brand new terminals -- and now they are much better than before. We have not come across major issues. If anything, Shanghai is getting a bit congested, which could be a concern quite frankly, but overall, one must recognize that the CAAC is putting in a lot of money to upgrade facilities throughout the country. Why did you launch the new look campaign this year? Has it achieved what you hoped it would? To give the airline a new look and lease of life. We are going into a different stage of development now. We are going into a new home; it is the first time we have a home of our own. This tremendously improves facilities, and all the benefits that come with a first-class building. Regarding your work with the Chamber, you were elected chairman of the China Committee in April this year, and have been very actively involved since day one. What do you enjoy most about the work? Getting to know more people, working on the China market, both the opportunities to be talking, communicating, seeing and really meeting Mainland officials and people from other companies, that is really what I enjoy most. What is the general mood you pick up from officials during missions to the Mainland with regards to the impact of China 's WTO entry on Hong Kong?I think they are trying to be very helpful. Everyone is working for the WTO. There will be challenges, and we are all working to get prepared. I don't think that anyone from day one will say it will be smooth sailing, but the important thing is that people recognize there will be challenges and opportunities and that they make the necessary preparations. B |
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