TransAsia planning two joint ventures

TransAsia Airways Corp (復興航空) plans to launch a joint venture airline in China and another in South Korea to pave the way for the local carrier's entrance to the China market, a newspaper reported yesterday.

The Chinese-language Economic Daily News said that TransAsia, eyeing the growing China market, plans to team up with China's Sichuan Airlines (四川航空) to form a new airline.

The joint venture would be capitalized at no less than 300 million yuan (US$40 million) and was scheduled to begin operations in the second quarter next year at the earliest, the report said.

TransAsia chairman Tony Fan (范志強) told the newspaper his company was expected to take a 25 percent stake in the joint venture with other Taiwanese investors including Goldsun Group (國產實業集團) and Taiwan Secom Co (中興保全) to hold an additional 24 percent. Sichuan Airlines would hold the remaining 51 percent stake.

The report said TransAsia would be the third local carrier to set up Chinese ventures following China Airlines Ltd (中華航空) and EVA Airways Corp (長榮航空).

TransAsia Airways is also negotiating with Busan, South Korea, city authorities and business enterprises to form Busan Airline, which is expected to be established within a year, the report said.

TransAsia was expected to use Busan as a springboard to enter the northern China market.