While many sectors suffered a Sars-induced downturn during 2003, it is unlikely that many were hit as hard as the aviation industry.
Tales of empty aeroplanes and cancelled flights were rife, as airlines across the region moved quickly to cut their losses and ride out the storm.
The inflight media sector, unsurprisingly, suffered likewise, and advertising revenues plummeted during the downturn. A new year, however, brings new hope, and many are bullish about the industry's prospects for 2004. Patrick Raguet, managing director of Asia Inflight, which publishes the CAAC Inflight Magazine, is confident 2004 will see markedly better returns for the sector.
"There was a definite downturn in 2003 due to the Sars effect as, for two to three months, you had a sharp drop in passenger numbers," says Raguet. "That had a big effect on inflight advertising revenues. With no Sars, ad revenues will be healthy in 2004, and even if there is a repeat of Sars, the impact will likely be less."
At Emphasis, which publishes inflight magazines for several Asian airlines, including Cathay Pacific, Thai Airways and Dragonair, editorial director Peter Morgan points out that while Sars certainly took its toll, prospects for the inflight media sector remain promising.
"During Sars we did cut some magazines," Morgan says. "However, many of our inflight magazines are profit centres for the airlines."
Morgan's point is particularly salient. Inflight magazines usually generate money for airlines, so few have been subjected to the kind of budget cuts experienced by other aviation business groups. However, the rise of new low-cost carriers such as Malaysia's AirAsia and Indonesia's LionAir is expected to cause something of a shake-up in the market. While Morgan concedes that increased competition may spell trouble, he remains relatively unfazed by the phenomenon. "Our business depends on the health of the industry," says Morgan. "Right now, it's too early (for the low-cost carriers)to have made a dent."
Indeed, Morgan prefers to look at the new opportunities the budget airlines can bring, given their willingness to operate outside the usual constraints of the large carriers.
"We're developing new products for low-cost airlines - they can be very different from standard inflights," he notes. "Low-cost airlines are more willing to take chances and their advertising sales hit a different market.
We're working on a model that meets passenger and airline expectations which are very different - less restricted and more fun."
Aviation consolidation has decimated the US and European sectors in recent years, but its spectre has, for the most part, yet to raise its head in Asia. The notable exception, of course, is China, where a series of mergers have left three major airlines - Air China, China Eastern, and China Southern - controlling the bulk of the domestic market. This has made competition a less pressing issue for Asia Inflight, although it has increased the complexity of its distribution network. It must now distribute to 38 airlines and divisions across the country. Michael Ringier, president of the board of directors of Swiss publishing giant Ringier AG, which owns Asia Inflight, agrees that distribution requires special attention in China.
"In China distribution is key and we are very happy to have the distribution contract with CAAC (Civil Aviation Administration of China), which has convinced all the airlines to take CAAC Inflight Magazine," says Ringier.
"We really have to watch distribution carefully because of the changes taking place in the aviation industry, such as the mergers."
It is unlikely that Ringier will lose too much sleep over distribution, given the advantages inherent in being the dominant inflight publisher in the China market. As Raguet points out, air travel in China is still more or a luxury pursuit than in other Asian markets, which can translate into better reach for advertisers.
"In China, the people who travel by plane are still less than one per cent of the total population, so it is very different compared with other countries,' says Raguet. "You definitely reach the people who have the money in China through inflight magazines."
Accordingly, Asia Inflight has made a conscious effort to attract high-end brands, and estimates that half of its advertising comes from the fashion and luxury sectors. It has also made a number of major improvements to CAAC Inflight Magazine - editorial content, design and layout and ensuring that all pictures used, inlcuding on the front cover, are visually striking and bold.
Raguet said that the changes were made possible because the CAAC has beenloosening its editorial control of the magazine.
"The magazine is their official publication so, of course, they have a say in what goes into it. But they have seen how other similar titles are produced and feel that the issue has to be addressed, after all Chinese consumers are becoming more mobile and exposed to more choice."
In addition, editorial content is also geared towards the needs of the affluent consumer, compared to other Asian inflight magazines, which must target a much wider audience. Interestingly, despite the preponderance of businesspeople on mainland flights, Raguet still views the magazine as being more focused on consumer, rather than business, issues.
"The aim of the inflight magazine is to entertain people," says Raguet.
"I see it more as a consumer title than a business title, especially in China where there is not much alternative entertainment on board."
In this respect, Asia Inflight has much in common with the region's other inflight publications, which are all considerably more entertainment- than business-driven.
Which explains the series of revamps Emphasis plans to make to the titles it publishes this year. First off the block, Morning Calm for Korean Air will feature a new design and editorial look from next month. Among the changes, the title will offer shorter articles with a greater focus on Korea. The revamped title will also feature new fonts and colour pallet.
For the first time, the look of Morning Calm's trilingual sections (English, Japanese and Korean) has been integrated on a design level to give the magazine a consistent look throughout.
"The redesign was undertaken to support the carrier's continued drive for improvement," adds Morgan.
Silkroad for Dagonair is due for an overhaul, possibly by mid-year to reflect the airline's expansion into new markets such as Bangkok and more recently Tokyo. Morgan explains: "On the editorial front, Silkroad will be more lifestyle oriented, with a younger, more lively feel and look.
Some of the things we're looking at is introducing more regular columns by well-known people, celebrities, and so on and providing editorial focused to the business traveller."
Echoing his inflight publishing peers, Morgan adds: "The role is not to be hard-hitting - our job is to entertain. Airlines use inflight magazines to communicate with passengers, entertain the passenger and as a branding tool."