China Airlines Ltd (CAL, 中華航空) yesterday announced it is to set up a low-cost carrier venture with Tiger Airways Pte of Singapore and plans to launch operations in the fourth quarter next year.
The joint venture, which has a paid-up capital of NT$2 billion (US$67.33 million), is to run a budget airline under the brand Tigerair Taiwan, which is licensed by Tiger Airways and based at the Taiwan Taoyuan International Airport.
NORTHEAST ASIA
Photo: Yao Chieh-hsiu, Taipei Times
Tigerair Taiwan aims to be a no-frills carrier providing international air travel services across Northeast Asia, including Japan, South Korea and the second-tier and third-tier cities of China.
“China Airlines’ knowledge of the Taiwan market, coupled with Tiger Airways’ expertise in the no-frills sector, should stimulate demand in the civil aviation market here,” CAL chairman Sun Hung-hsiang (孫洪祥) told a press conference.
CAL is not the only airline in Taiwan planning to enter in the low-cost carrier market.
Last month, TransAsia Airways Corp (TNA, 復興航空), which mainly serves passengers on regional and cross-strait routes, said it would establish a budget airline subsidiary within one year to meet rising demand.
The company, which mainly serves passengers on regional and cross-strait routes, said it planned to invest between NT$2 billion and NT$3 billion to operate the subsidiary.
Sun said CAL and Tiger Airways are submitting an application for regulatory approvals from the Ministry of Economic affairs and the Civil Aeronautics Administration (CAA), aiming to operate as quickly as possible.
In addition, the launch of Tigerair Taiwan will help increase CAL’s sales performance and profitability, Sun said, as CAL holds a 90 percent share in the new carrier, with its Singapore partner taking the other 10 percent.
Sun expressed optimism that Tigerair Taiwan will “absolutely” turn profit after three years of operation, with the company aiming to break even in its first year of operation.
INITIAL THREE PLANES
Tigerair Taiwan plans to buy three Airbus SAS’ 320 series aircraft, with the fleet expected to total 12 planes in 2016 or 2017.
The new joint venture is to allow Tiger Airways to extend its presence into new untapped markets in Northeast Asia, chief executive officer Koay Peng-yen (郭炳炎) said.
Tiger Airways Holding Ltd currently operates a fleet of 50 aircraft to over 50 destinations, from its bases in Singapore, Indonesia, the Philippines and Australia, while CAL operates a fleet of 75 aircraft to 109 domestic and international destinations in its network.
SETBACK: Apple’s India iPhone push has been disrupted after Foxconn recalled hundreds of Chinese engineers, amid Beijing’s attempts to curb tech transfers Apple Inc assembly partner Hon Hai Precision Industry Co (鴻海精密), also known internationally as Foxconn Technology Group (富士康科技集團), has recalled about 300 Chinese engineers from a factory in India, the latest setback for the iPhone maker’s push to rapidly expand in the country. The extraction of Chinese workers from the factory of Yuzhan Technology (India) Private Ltd, a Hon Hai component unit, in southern Tamil Nadu state, is the second such move in a few months. The company has started flying in Taiwanese engineers to replace staff leaving, people familiar with the matter said, asking not to be named, as the
The prices of gasoline and diesel at domestic fuel stations are to rise NT$0.1 and NT$0.4 per liter this week respectively, after international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to rise to NT$27.3, NT$28.8 and NT$30.8 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to rise to NT$26.2 per liter at CPC stations and NT$26 at Formosa pumps, they said. The announcements came after international crude oil prices
SinoPac Financial Holdings Co (永豐金控) is weighing whether to add a life insurance business to its portfolio, but would tread cautiously after completing three acquisitions in quick succession, president Stanley Chu (朱士廷) said yesterday. “We are carefully considering whether life insurance should play a role in SinoPac’s business map,” Chu told reporters ahead of an earnings conference. “Our priority is to ensure the success of the deals we have already made, even though we are tracking some possible targets.” Local media have reported that Mercuries Life Insurance Co (三商美邦人壽), which is seeking buyers amid financial strains, has invited three financial
CAUTION: Right now, artificial intelligence runs on faith, not productivity and eventually, the risk of a bubble will emerge,’ TIER economist Gordon Sun said Taiwanese manufacturers turned more optimistic last month, ending a five-month streak of declining sentiment as concerns over US tariffs, currency volatility and China’s overcapacity began to ease, the Taiwan Institute of Economic Research (TIER) said yesterday. The manufacturing business confidence index rose 1.17 points from June to 86.8, its first rebound since February. TIER economist Gordon Sun (孫明德) attributed the uptick to fading trade uncertainties, a steadier New Taiwan dollar and reduced competitive pressure from Chinese producers. Taiwan’s semiconductor industry is unlikely to face significant damage from Washington’s ongoing probe into semiconductors, given the US’ reliance on Taiwanese chips to power artificial