Beyond Horizons
Trailblazing Tales from Asia
Your exclusive gateway to the latest developments across transportation and space, and most importantly, how to finance it all - debt, equity, and defi! We follow and forecast where the money’s at.
Join us as we navigate through the latest roundup to uncover key developments across the region
Singapore Events
Singapore Maritime Week (SMW), hosted by the Maritime Port Authority of Singapore (MPA), will take place from April 16-18, 2024, bringing together global maritime leaders and enthusiasts to explore industry trends and opportunities. This year's theme, 'Actions Meet Ambition,' will be showcased through a new trade exhibition, Expo@SMW, featuring state-of-the-art technologies and solutions in thematic zones like Innovation, Decarbonization, Services, and Country. This initiative aims to drive the industry towards sustainability and a net-zero future.
The Argus Biofuels & Feedstocks Asia Conference returns to Singapore on April 22-24, 2024. Join over 350 industry leaders from 20+ countries to explore new biofuel pathways, including marine, SAF, and bio-naphtha market developments. Featuring the SAF Focus Day on April 22 and new events like the Women in Biofuels Networking Breakfast, this flagship event offers engaging networking opportunities and insightful industry discussions.
Summary
· Financing & Investments: Chinese Stock Exchanges Release Finalized Sustainability Report Guidelines; GE Aerospace Invests in Pune Facility Expansion and Upgrade; Korean Air Plans Largest MRO Facility in Asia; Metrojet Engineering Clark Invests in AOG Support Station at Manila Airport; Global Finance Reveals Winners of 31st Annual World’s Best Banks Awards
· Air Transport: Malaysia achieves first net profit since restructure; Taiwan’s China Airlines prepares for fleet expansion
· Environmental Sustainability: New KMPG, Standard Chartered, and UNDP Guide Tackles Finance Shortfall in Adaptation and Resilience; GenZero Unveils Paper Decoding Future Carbon Market Scenarios; Setback for Singapore's Electrification-Driven Carbon Emission Reduction Plan; Korea’s Modetour Extends SAF Partnership with Air France-KLM; Mavcom Concludes Public Consultations on Air Travel Carbon Fees; NSW, Australia Commits $100 Million to Launch SAF
· Aircraft Leasing: Azorra Delivers First Embraer E190-E2 to Scoot; SriLankan Airlines Secures A330 Leases with Irish Suppliers; Abelo Expands Fleet with Four ATR72-600 Aircraft Leased to IndiGo; Skytrans Joins Avia Solutions Group, Expanding Aviation Services
· Air Traffic Management: Leidos Launches Air Traffic Management Research Center in Singapore;
· Advanced Air Mobility: Zhuhai Huafa Group Leads Innovation with Smart Homes for UAV Integration; AAUS Charts Future of Advanced Air Mobility in Australia; · Liangping Launches Low-Altitude Economic Strategy with EHang's EH216-S 'Air Love' Flight; Hien Aero Technologies Completes Levitation Test of HIEN Dr-One V2B eVTOL; Lilium and PhilJets Sign MoU for 10 eVTOL Jet Purchase; Eve Mobility and PhilJets Forge Partnership for eVTOL Expansion in Southeast Asia
Finance & Investments
China
On April 12, stock exchanges in Shanghai, Shenzhen, and Beijing announced the finalized Sustainability Report Guidelines after a 60-day public consultation. The Shanghai Stock Exchange also released an English version. The guidelines aim to improve the quality of listed companies and their investment value by regulating the disclosure of sustainability information. They apply to companies listed on the main board and the STAR market and will take effect from May 1st, 2024.
💡The key changes compared to the consultation version include the separation of "Innovation-Driven Development" and "Suppliers & Clients" into two sub-sessions within the social disclosure section (Chapter IV). Additionally, the title of Chapter V has been updated from "Corporate Governance Information" to "Corporate Governance Information Related to Sustainable Development Disclosure," explaining why conventional CG indicators are not included. Furthermore, the final version now includes an "Index of Topics" at the end of the guidelines.
India
Shortly after making its debut as a standalone company listed on the New York Stock Exchange, GE Aerospace announced an investment of over Rupees 240 crore (~USD 30 million) to expand and upgrade its manufacturing facility in Pune. Announced April 4, The investment will allow the facility to add new projects and manufacturing processes by acquiring machines, equipment, and specialized tools, along with capacity enhancement of existing products.
The facility derives 30% of its power consumption from renewable sources. It operates with zero liquid discharge, recycling and reusing 1 crore litres (100 million litres) of water every year, and repurposing 20 metric tons of plastic.
💡GE Aerospace is set to inject over $650 million into its manufacturing facilities and supply chain over 2024, aiming to enhance production and bolster quality to better serve its commercial and defense customers. Of this amount, nearly $550 million will be directed towards U.S. facilities and supplier partners.
South Korea
Korean Air Lines is constructing the largest aircraft maintenance, repair, and overhaul (MRO) facilities in Asia on Yeongjong Island, Incheon. Spanning 142,211 square meters and featuring two underground levels and five aboveground floors, this project demands an investment of 578 billion won ($437 million USD) and is expected to be finished by 2027.
💡Korean Air will consolidate engine maintenance operations from its Bucheon facility and final testing from the Engine Test Cell in Unbuk into a single centralized site to enhance operational efficiency.
Philippines
Metrojet Engineering Clark (MEC), the Philippines-based Maintenance, Repair, and Overhaul (MRO) station under Hong Kong-based Metrojet, has launched an Aircraft-On-Ground (AOG) support station at the Manila Ninoy Aquino Airport. The MRO follows MEC's signing of a Memorandum of Understanding (MoU) with local business jet service provider Asian Aerospace Corporation in March. The specific investment amount remains undisclosed.
💡 The MRO station will start operating on May 1, 2024
Global
Global Finance has unveiled its 31st annual awards for the World’s Best Banks. Recognizing outstanding institutions across 28 countries, territories, and districts in Asia-Pacific, the regional winner is UOB. A comprehensive report detailing the selections will be published in the May print and digital editions of Global Finance, along with online coverage at GFMag.com. Winners have been chosen across nearly 150 countries worldwide, spanning regions including Africa, the Caribbean, Central America, and more.
💡The May report will also highlight selections for the Best Islamic Financial Institutions, the Best Banks by US Region, and the World’s Best Banks by Region.
Air Transport
Malaysia
The Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, has achieved its first net profit since its 2015 restructure, marking a record-breaking financial performance.
MAG reported a net profit of 766 million ringgit (approximately $163 million USD) in 2023, a substantial improvement from the prior year's net loss of 344 million. This growth was fueled by a 52% surge in passenger traffic, thanks to new routes and 86% pre-pandemic capacity by December 2023.
💡 Despite facing challenges, MAG remains optimistic about a full recovery in 2024. Plans are underway for new partnerships, routes, and aircraft orders aimed at enhancing the passenger experience.
Taiwan
Taiwan's China Airlines intends to add five A321neo aircraft and three B777-200Fs to its fleet this year as part of its ongoing fleet renewal plans. The incoming Airbus jets will replace its aging B737-800 fleet. The airline anticipates receiving twenty-four B787s by the end of 2028.
💡China Airlines announced that it will resume flights to Seattle-Tacoma International in July after a 16-year hiatus. The carrier stated that it is shifting its focus to North America following recent expansions in its European operations.
Environmental Sustainability
Global
KPMG, Standard Chartered, and the United Nations Office for Disaster Risk Reduction (UNDRR) have launched a ground-breaking roadmap to address the significant finance shortfall in adaptation and resilience efforts. Developed with support from over twenty leading financial institutions, Multilateral Development Banks (MDBs), and NGOs, the Guide for Adaptation and Resilience Finance serves as a practical tool for investors and financial institutions. It provides a common reference and classification framework for adaptation and resilience themes and activities, simplifies decision-making processes, and identifies priority investments with co-benefits such as emissions reductions and nature conservation.
💡The guide maps over 100 investable activities, including climate-resilient crops, natural flood protection, renewable energy storage, and mangrove conservation.
Singapore
Temasek's wholly-owned investment firm, GenZero, has unveiled a paper exploring potential future pathways for carbon markets and the role of carbon finance in advancing climate action. Titled "GenZero Carbon Scenarios – An Exploration of the Future of Carbon Markets," this 56-page document aims to decipher the complexities of the carbon market landscape. The paper explores three potential scenarios for carbon markets: Green New World, Sustainably Divided, and Resilient Islands.
💡GenZero’s scenarios are not predictions but narratives about potential futures to support stakeholders in understanding how different driving forces can shape outcomes. It encourages investors, policymakers, and industry leaders to discuss important factors, make strategic adjustments, and prioritize actions to effectively achieve decarbonization goals.
Singapore
Singapore's push to cut carbon emissions via electrification hits a snag as Mo Batteries, one of the two firms trialing battery swapping for electric motorcycles, delays its commercial rollout. This development, reported by The Straits Times, poses a setback to the city-state's green ambitions.
💡The other company involved is the Taiwanese firm Gogoro, which commenced its testing in March 2023. Gogoro has extended its trial period by six months and is scheduled to conclude the testing phase by September.
Mo Batteries attributes the delay to high costs and the complexity of establishing a commercially viable business. Despite a year of testing under a Land Transport Authority (LTA) scheme, the company has decided not to launch the service in 2024 as initially planned. Originally expected to begin commercial operations in the first half of 2024, Mo Batteries' decision to halt comes after the trial, which commenced in July 2023.
South Korea
On April 11, South Korea's travel agency Modetour Network Inc. announced an extension of its partnership with Air France-KLM to promote the use of sustainable aviation fuel (SAF). The SAF program, initiated by Air France-KLM in 2021, saw Modetour as the first Korean travel agency to engage in a purchase agreement for SAF in February last year.
Modetour will expand its sustainable travel package offerings to include SAF-blended flights and eco-friendly accommodations provided by Air France-KLM. These offerings will extend to destinations like Switzerland, the Benelux countries, and Austria.
💡Modetour curently provides a 9-day eco-sustainable travel package in Northern Europe and a 10-day eco-travel package in France.
Malaysia
The Malaysian Aviation Commission (MAVCOM) has completed public consultations on the implementation of carbon fees for air travel. By month’s end, MAVCOM plans to submit carbon levy amendments to the Malaysian Aviation Consumer Protection Code 2016 for gazetting.
💡The carbon levy is an international obligation for all airlines, aimed at supporting the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
Australia
New South Wales (NSW) is allocating up to $100 million to kickstart local production of SAF. Currently, Australia lacks SAF production facilities, though plans exist for a refinery in Townsville. British multinational oil and gas company BP also aims to commence biofuel production at Kwinana, south of Perth, by 2026.
💡 To accelerate progress, the NSW government has unveiled a Sustainable Aviation Fuel Investment Prospectus, highlighting the state's potential to spearhead the SAF industry in Australia.
Aircraft Leasing
Singapore
On April 11th, aircraft lessor Azorra delivered the first of nine new Embraer E190-E2 aircraft to Scoot, the low-cost subsidiary of Singapore Airlines (SIA).
💡Named 'Explorer 3.0' in honor of Scoot's third fleet addition, the delivery of the E190-E2 marks the debut of an aircraft from the Brazilian manufacturer for a Singaporean carrier.
Sri Lanka
SriLankan Airlines is set to acquire four A330 aircraft through leasing agreements with two Irish suppliers, ORIX Aviation and Aergo Capital. ORIX Aviation will provide two aircraft under a six-year lease at a monthly rate of US$360,000 each, while Aergo Capital will lease two aircraft for eight years at a monthly fee of US$365,000 each. The airline’s current fleet consists of 17 aircraft including three grounded ones.
💡Despite turning a profit, the airline is grappling with substantial debt, leading the government to seek an investor.
India
On March 20, Irish-based regional aircraft lessor Abelo announced the acquisition of four ATR72-600 aircraft through San Francisco's SKY Leasing. The move expands Abelo's portfolio to a total of 57 owned and managed aircraft. All four aircraft are currently leased to India's low-cost carrier, IndiGo.
💡Abelo's partnership with IndiGo aims to support the company's expansion and enhance regional connectivity.
Australia
Queensland-based regional airline Skytrans has formally become part of the Avia Solutions Group - the world's largest ACMI (Aircraft, Crew, Maintenance, and Insurance) provider, operating a fleet of 212 aircraft. The acquisition of Skytrans by Avia Solutions Group was finalized last month, following the announcement of the deal in late January. Avia has indicated intentions to broaden the carrier's services into wet leasing and jet operations.
💡With the acquisition of Skytran’s air operator certificate (AOC), the group now holds a total of 12 AOCs.
Air Traffic Management
Singapore
Leidos Holdings, Inc. (LDOS), a FORTUNE® 500 innovation company, has opened an Air Traffic Management (ATM) Research and Collaboration Center in Singapore. Using Leidos' Skyline-X platform, the center aims to improve runway operations and international traffic management technologies, providing solutions to the Civil Aviation Authority of Singapore (CAAS) and Air Navigation Service Providers in the Indo-Pacific region
💡The Center will partner with regional universities, research institutes, and industry collaborators to bolster international air traffic solutions and improve operations.
Advanced Air Mobility
China
Zhuhai Huafa Group, a state-owned enterprise in China's Guangdong province, has partnered with technology conglomerate Huawei, logistics giant SF Express, eVTOL developer EHang, and other industry leaders to introduce a new generation of smart homes tailored to accommodate uncrewed aerial vehicles (UAVs).
The initiative, loosely translated as the "New Generation of Good House Huafa Technology + Product System Technical Standards," encompasses five design concepts catering to different demographics, including seniors and families. Each home incorporates smart city elements such as artificial intelligence, storage, and charging facilities.
Announced on April 12, this project aims to establish China's premier drone distribution community, in accordance with Zhuhai's 2024 Government Work Report, which prioritizes the development of the low-altitude economy and aerospace industry. Huafa's Zhuhai Bay will spearhead UAV distribution efforts, propelling Zhuhai's low-altitude economic growth and contributing to the realization of the "City of the Sky" vision. It is anticipated that in the second half of this year, Huafa's Zhuhai Bay will become China's first smart residential community to implement UAV distribution technology.
💡Reports indicate that Huafa Group and EHang have jointly developed an uncrewed traffic management system to facilitate last-mile logistics distribution. This involves setting up UAV aprons on terraces and employing UAV centimeter-level accurate positioning technology. Each home will integrate smart city features like artificial intelligence, storage, and charging facilities.
Australia
The Australian Association for Uncrewed Systems (AAUS) has issued a vision document and roadmap for advanced air mobility (AAM), designed to support the government in policy development and investment endeavors. AAUS projects that the first AAM aircraft will be operational in Australia by 2027.
AAUS states AAM development will occur in three waves. The first wave will focus on initial use cases that can be accommodated within existing air navigation systems with minimal regulatory change and impact on airspace use. Examples include theme park air tourism, regional charters, and ad hoc flights from major airports to existing helicopter landing sites. Niche services will also be developed for community-good applications in low-impact environments. The second wave will involve incremental changes to the existing ecosystem to expand the scope of viable AAM operations, including scheduled urban public transport and improved regional air mobility. The third wave will witness significant expansion in scheduled passenger transport services across urban and peri-urban vertiports, facilitating on-demand air taxi and urban freight services.
💡AAUS will host its AAM Summit during the 2024 RotorTech Helicopter and Uncrewed Flight Exposition, taking place from June 4th to June 5th, 2024, at the RACV Royal Pines Resort in Gold Coast. The document will serve as a guiding tool for discussions at the Summit.
China
Liangping District in Chongqing, China, has kicked off its low-altitude economic development strategy with the inaugural flight of EHang's EH216-S “Air Love” eVTOL aircraft. By utilizing Liangping Airport, the district plans to create diverse low-altitude economic scenarios and eVTOL take-off and landing spots around Liangping, as well as in Shuangguitang and Baili Island in Zhuhai.
💡The EH216-S Air Love Flight signifies the launch of Liangping's dedicated low-altitude economic industrial park.
Japan
On March 1, 2024, Japanese eVTOL developer Hien Aero Technologies achieved a significant milestone by conducting the first-ever levitation test of its HIEN Dr-One V2B eVTOL in Asia using gas turbine power generation. The test resulted in a successful levitation lasting approximately one minute.
💡The gas turbine generator used in the test, along with its powering hybrid system integrated into the "HIEN Dr-One," is slated for commercialization in 2025. Additionally, there are plans to develop a six-seater autonomous flying car by 2030.
Singapore
Air charter company PhilJets has entered into a Memorandum of Understanding (MoU) with Germany's Lilium with the intention to purchase 10 Lilium eVTOL Jets. Announced at the Singapore Air Show 2024, the MoU outlines a strategic collaboration aimed at establishing an eVTOL operation network across the Philippines and other Southeast Asian countries, including Cambodia.
Both companies will work together to locate landing infrastructure sites, assess requirements, and find suitable partners.
💡PhilJets operates a fleet of 15 private jets and helicopters and offers maintenance services through its affiliate entity, supporting over 100 helicopters.
Singapore
The Brazilian subsidiary of Embraer, Eve Air Mobility, and Singapore's Yugo Global Industries have signed a memorandum of understanding to explore the infrastructure needed to support eVTOL operations, including regulatory compliance. Inked at the Singapore Air Show 2024, both parties will analyze service center and vertiport dimensions, capabilities, ground handling, and other pertinent areas as necessary.
💡 The two sides will also analyze service center and vertiport dimensions, capabilities, ground handling, and other relevant areas as needed.