In a Q&A session 1. Can you introduce our readers to the origins and aspirations of Aerospace Forum Asia (AFA) and give some examples of lessons learnt. How does it help to promote investment in the region's aero industry? The AFA started as an informal luncheon club in Hong Kong in 1986. The first meeting was called by Gareth Chang, the President of McDonnell Douglas, and the driving force behind the assembly of MD-80s in Shanghai. That project and Gareth were far sighted. The potential for business development and the need for innovative East West 30 plus year partnerships were obvious at that time but only to a few. Relationship building (or the tradition of Guanxi) was seen to be as important as technology transfer and the AFA was in effect a by-product of that vision. Gareth saw the need for all sectors of the industry to build mutual appreciation and speak with one voice on the industry's business and value added benefits for society. I was invited to the first lunch as the new ‘kid on the block' after starting a Saab Aircraft marketing office in Hong Kong in 1986. It's a pleasure to reflect on 30 colourful years associated with the AFA; during my careers with Saab, BAe Systems and working with my own consultancy, Hillcrest, with clients such as Air Asia and Engine Lease Finance Corporation (ELFC). The AFA has in most respects lived up to Gareth's original vision of creating a ‘Wings Club' in Asia. Its aspiration now is to do more to ensure human-ware development matches hardware growth. Put simply there are nowhere near enough pilots and technical specialists being trained to satisfy the enormous growth expectations in civil aviation in Asia. It's in the entire industry's interest to give this more thought and financial support. Do email John.Bent@gmail.com a long time AFA activist and former head of pilot training at Cathay Pacific if you have a contribution in this area. 2. What opportunities are there for UK and European companies to get involved in the Asia Pacific aerospace industry, especially further down the supply chain? As indicated in my initial answer on the origins and aspirations of AFA there are huge opportunities for UK companies in the technical training field. English being the universal language of aviation gives the UK an edge. This is a business field that small and medium size companies can get into without high capital investment. The European industry is of course heavily involved in a wide range of civil and military aerospace projects in Asia Pacific; some pioneered earlier than others. Short Brothers with remarkable persistence delivered airlines to China before Airbus in 1985. Airbus have done a great job catching up with Boeing in China in the past 25 years and ironically have taken the MD-80 assembly concept further with their impressive A320 full production facility in Tianjin. The AFA have enjoyed insightful stories from representatives from both companies. Boeing pioneer Matt Chen, recalled his historic experiences of walking Deng Xiaoping around Seattle production lines and the formidable Airbus leader Jean Pierson told us very frankly how he won hearts and minds with whatever it took to build market share in Asia. The common thread as I noted earlier is not primarily based on how big or complex your project but more on how empathetically your key staff connect. The lesson for today's social media savvy sales types is to recognise the importance of warmly connecting on a personal and cultural level in person, not just on a computer screen. 3. How is the Asia market performing? What prospects can you see in individual markets? What impact are programmes such as the COMAC C919 production in Shanghai or Rolls-Royce manufacturing in Singapore having? The Asia market is performing as expected with vitality and huge underlying demand due to the topographical nature of the continent and sociological demands of the fast rising middle classes with their strong desire to travel. Low cost carriers have not surprisingly grown faster than so called legacy, full service carriers, and the profitability of freight has suffered in recent years. The growth numbers are astonishing and despite setbacks such as the Asian financial crisis in 1987, SARS in 2003 or the Atlantic financial crisis 2008, the long term need for more airports, airliners and all related services remains immense. The COMAC and Rolls-Royce investments in Shanghai and Singapore respectively are very different, but both demonstrate the need to be close to and well-tuned to the market. The projects output also have to be globally competitive whilst at the same time harmonising public and private investment motivations, which is not easy. I first visited the COMAC production centre in Shanghai in March 1980 when it was a semi-secret AVIC production centre for the Y10 (often referred to as a copy of the 707). Thirty six years on, the same challenges face the Chinese airframe manufacturing industry; how to catch up in the exceptional complex airframe design development and certification process. Even with China's deep pockets, strategic motivation and intense work ethic it's hard to see them meeting the delayed program deadlines for the C919. No disrespect to my Chinese industry friends but building large commercial airliners with the very low operating costs demanded by the ever stretched airline industry is one hell of a challenge. The Rolls-Royce aero engine manufacturing and service support facility in Singapore is a good example of a British company thinking globally and developing a joint venture intelligently. Rolls-Royce leaders over many years have urged the British government to give traditional manufacturing more support. The Singapore government did not need any encouragement and emphasised its human resource development and attractive location at the heart of the world's biggest aerospace market. 4. What are the key requirements or risks for European aerospace companies developing business in Asia? This is a complex question. The requirements and risks are manifold, but headline issues relate to patience, empathy and vision. Business with Asia is very different from the almost exclusively day time office based encounters in Europe and the USA. In Asia I often learnt the key intelligence and insight would only come out over dinner, after the Asian business associate became comfortable with whom they were talking to. This kind of multi-dimensional relationship takes time, incurs more cost and requires reflection; in short a full cross cultural communication challenge. You often need to build consensus for a purchase, top down and bottom up. This was certainly true of the eventually successful 5 year plus campaign I led to sell 12 X A340 airliners in Japan. The marketers also needed a natural curiosity for the different departments at a customer's headquarters to progress the business. The headquarters of the seller also need patience and consequently a vision of where the business link will lead and what it will be worth over decades. This naturally clashes with the enviable blinkered quarter by quarter expectations of the bean counters. In summary you need patient, plus committed and culturally dexterous staff on the front line and at headquarters to succeed. Rome was not built in a day and from an aviation viewpoint Asia is not yet even half built. Think of China's air travellers, 3 million when I first visited in 1980, around 400 million last year and according to the FAA set to overtake the US market with one billion air travellers per year by 2030. I would also recommend suppliers, who really want to engage fully, should participate in International Air Transport Association (IATA) industry events, whose Asia headquarters is in Singapore and pay attention to output and events from the Association of Asia-Pacific Airlines (AAPA) based in Kuala Lumpur and the Pacific Asia Travel Association (PATA) in Bangkok. From a British point of view the British Aviation Group (BAG) can provide export building blocks for airport equipment companies. 5. What are your experiences of the Singapore Airshow?
My experiences of Singapore's now exceptionally well crafted, resourced and delivered air show are wide ranging and date from 1984. February 1984 was the first early Singapore Air Show with a temporary expo building a few mini chalets and about 10 aircraft (Harrier to Shorts 360 on display!) I will be making my 17th successive appearance at the Changi aero show this year. The appearance and impact of the event has substantially changed. The Singapore government has invested in permanent and customised facilities. Singapore Inc recognises its strategic dependence on civil aviation to fuel its hyper connected economy and the nation building importance of the military side of the show. The public days rightly attract Singapore's best and brightest young citizens and it motivates them about national service and the vital role aviation plays in their country. Singapore at the very highest level has always walked the talk that civil aviation is a generator of commerce not a servant of it. A sincere form of flattery is Dubai's duplication of Singapore's ‘Aerotropolis' philosophy and it's delivery of a world class bi-annual air show. There is no doubt Singapore and Dubai have superseded Farnborough and Paris. They are not only in the growth markets but deliver a much more seamless user experience. I look forward to seeing old AFA friends at this year's Singapore show, and more importantly meeting a new generation aviation activists who want to fully connect. Feel free to send feedback via martin.craigs@aerospaceforumasia.org or via this forward thinking publication. www.aerospaceforumasia.org www.singaporeairshow.com
