Give Wings to Your Dreams

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Give Wings to Your Dreams
(Quoted from Internship at IATA)

• Lecturer Edwin C.M. Lee
• Air Macau Co., Ltd.
• edwinlee_at_airmacau.com.mo
• 3rd November 2005
• National Chen-Kung University

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Lecture Outline

• 1. Self-Introduction
• 2. Airline Industry Environment Updates
• 3. A Brief Introduction of the Program of
  Airline Operation Management
• 4. Your Career Challenges in Todays Highly
  Competitive World
• 5. Q A

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Self-introduction

• Previous Positions in Airline Industry
• May 1974
• Joined Cathay Pacific as Traffic Officer
• May 1990 - Jun.1996
• GM of Dragonair GSA in Taiwan
• Jul. 1996 Jan. 1999
• Area Manager of Dragonair in Taiwan

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Self-introduction

• Previous Positions in Airlines Industry
• Feb. 1999 Oct. 2000
• President, TransAsia Airways Co., Ltd.
• Oct. 2000 Mar. 2002
• GM of American Airline GSA in Taiwan
• Mar. 2002 - present
• GM of Air Macau in Taiwan
• Deputy Vice President, Commercial
• Air Macau Company Limited

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2. Airline IndustryEnvironment Updates

• Passenger Numbers recorded at 1.8 billion in 2004
• IATA forecasted a 6 growth per year for both
  Passenger Cargo for 2004 - 2008

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• IATA Statistics showed 8.3 RPK growth between
  Jan - Aug 2005
• RPK (Revenue Passenger Kilometres)
• - measures actual passenger traffic
• ASK (Available Seat Kilometres)
• - measures available passenger capacity
• PLF (Passenger Load Factor)
• - of ASK used

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• FTK (Freight Tonne Kilometres)
• - measures actual freight traffic
• ATK (Available Tonne Kilometres)
• - measures available total capacity combining
  passenger cargo
• IATA (International Air Transport Association)
• - represents 265 airlines comprising 94 of
  international scheduled air traffic. The IATA
  Billings Settlement Plan operates in 71
  countries for 390 airlines

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• The airline industry recorded USD36 billion
  LOSS during 2001 - 2004 of which USD32 billion
  suffered by North America
• IATA estimates industry loss in 2005 at USD7.4
  billion
• Europe breakeven
• Asia-Pacific earn about USD1 billion
• North America loss expected to exceed
• USD8 billion

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• Factors due to
• Terror Attack since 911 in 2001
• War on Iraq
• SARS
• Skyrocketing Fuel Price
• Potential Outbreak of Avian Influenza (Bird Flu)

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• Comparison of Fuel Price (2003 - 2005)
• USD 44 billion in 2003
• (at average of USD29/barrel in Brent)
• USD 63 billion in 2004
• (at average of USD38/barrel in Brent)
• USD 97 billion in 2005
• (at average of USD57/barrel in Brent)

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• Refinery margin for jet fuel increased from USD6
  per barrel in 2003 to USD17 (present fuel bill)
• Positive attitude People in Aviation Industry
  is always Optimistic and Prepared for Challenges

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• Flight Safety
• Tragically 663 people lost their lives in over
  1.6 billion passengers in 2004. Similar number
  to 1945, the industry carried only 9 million
  passengers.
• Cost Efficiency is the Challenge for Airline
  Industry Ahead
• IATA implemented
• - Simplifying the Business Campaign
• - Fuel Action Plan Campaign

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• IATA -
• Simplifying the Business Campaign
• 100 E-Ticketing by 2007
• Common use self-service kiosk for check-in
• Radio frequency identification for baggage
  management

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• IATA -
• Fuel Action Plan Campaign
• Realignment of inefficient routes
• Continuing effective fuel hedging
• One engine taxi, reducing aircraft weight etc.
• Each 1 fuel saving can lower fuel cost by USD700
  million per year

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3. Airline Operation Management Program

• Purpose of Training
• Course objective contents
• TQM Workshop Facilitator
• Refresh self-renewal of the program
• Choose 10 reference books, 10 websites as a start

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• Your key weak point is far to reach a level of
  good command in English. Bear in mind there is
  no short cut to improve your English

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4. Your Career Challenges in Todays Highly
Competitive World

• What I learned from Swire
• 3 Golden Principles
• Skills
• Knowledge
• Value

Skills
Knowledge
Value
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• Skills
• PC and IT related
• Language
• Planning Organizing
• Communication Presentation
• People

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• Knowledge
• Common Sense
• Technical
• Logistic Thinking Judgement
• Literature Art
• Health Management

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• Value
• Self-discipline
• Take long-term view
• Be fair to us as well as to others
• We are conservative but proactive creative
• People is our most valuable asset

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5. Conclusions

• Winning Markets Through Strategic Planning
• There are five types of people
• 1) Those who make things happen
• 2) Those who think they make things happen
• 3) Those who watch things happen
• 4) Those who wonder what happened
• 5) Those that did not know that anything
  had happened.

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• Thank You !
• Q A