China Southern Airlines Co (中國南方航空), set to become the first Chinese carrier to fly nonstop to Taiwan, said that routing services via Hong Kong airspace will lead to longer flights, squandered fuel and higher fares.
“It’s unreasonable and a huge waste of resources and passengers’ time,” company chairman Liu Shaoyong (劉紹勇), who will pilot the first flight, said in an interview yesterday. “This must be changed as soon as possible.”
Fares for Shanghai and Taipei trips will be twice the price they could be because of the diversion, which will add an extra 90 minutes to the length of a flight, according to China Southern. The services, due to start on July 4, will have to make the detour because of Taiwanese security concerns governing the airspace in the 150km-wide Taiwan Strait.
“Nonstop flights between the mainland and Taiwan will be very profitable if they can be flown direct,” said Li Lei (李磊), an analyst at China Securities Co (中信建投證券) in Beijing. “The fare for the flights is international, while the distance is domestic.”
China Southern, like carriers worldwide, is struggling to cope with surging fuel costs. China raised the price of jet fuel 25 percent from last Friday, adding about 15 billion yuan (US$2.2 billion) a year to domestic carriers’ operating costs.
Fuel will account for more than 40 percent of China Southern’s operating costs this year based on current fuel prices, Liu said. That compares with 35 percent last year.
The airline predicted that a rebound in traffic in the fourth quarter would enable it to post a full-year profit, notwithstanding higher fuel costs and slower travel demand caused by surging inflation, natural disasters and a stock market slump.
The carrier is also cutting services, optimizing routes and reducing waste on flights to cut fuel consumption. It has also applied to raise surcharges on domestic routes.
“We’ll do everything we can to pass this difficult time,” which is the worst period for Chinese carriers since the SARS outbreak in 2003, Liu said.
China’s airlines would need a 70 yuan increase in surcharges to offset the increase in fuel prices announced last week, Li said. Beijing would be more likely to approve an extra 50 yuan, he said.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
‘ONE-STOCK SHOW’: Turnover hit an all-time high as TSMC continued to determine the local market’s direction and surpassed Visa in market capitalization The TAIEX early yesterday hit an all-time intraday high on the back of soaring Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares, before tumbling back to the previous day’s close as the contract chipmaker could not single-handedly prop up the index. The TAIEX rose more than 400 points in the first 20 minutes of trading to hit a record 13,031.7 points, but later pared its gains to close down 0.01 percent at 12,586.73. Turnover was NT$343.252 billion (US$11.63 billion), the highest in the Taiwan Stock Exchange’s history. TSMC continued to dictate the market’s direction, as its early surge by the daily