TransAsia Airways Corp (復興航空) yesterday said it would sell or lease out four Airbus A330 aircraft as part of its efforts to streamline its operations.
TransAsia uses the aircraft on flights to Japan. After the removal of the planes from its fleet, the carrier is to use Airbus A320 and A321 jets to serve its Japan routes, TransAsia said.
For pilots who are to be affected by the adjustment of the carrier’s fleet, TransAsia said it would give on-the-job training to allow them to fly other aircraft models, adding that it would place other affected employees in other positions.
The change is aimed at taking on rising competition in the air transportation market in Japan, where the number of flights from Taiwan has been increasing rapidly, TransAsia said.
The carrier added that a stronger yen has also had an adverse impact on flights to Japan from Taiwan.
TransAsia said that the carrier would use its A320 and A321 aircraft to serve international routes and destinations in China.
For domestic routes, TransAsia said it is to continue to use ATR aircraft.
In addition to the four A330 jets, TransAsia owns five A321, five A320 and seven ATR models.
TransAsia chairman Vincent Lin (林明昇) said that efforts to streamline its fleet are aimed at boosting the efficiency of its operations and sharpening its competitive edge.
At a time when traditional airlines such as TransAsia face pressing threats from budget carriers, Lin said that his company is trying to build a “hybrid” business model that strikes a balance between a traditional carrier and a budget carrier to seize more business opportunities.
The carrier said it is to stop its services to Okinawa, Japan, and Guiyang and Macau in China from Oct. 30 to further streamline its operations.
The carrier said that it would inform passengers who have already booked flights to the three destinations and help them deal with any inconvenience caused.
FLIGHTS TO PALAU
After the destination adjustments, TransAsia is to fly to eight international destinations, including Tokyo, Osaka and Sapporo in Japan, Siem Reap, Cambodia, and Palau.
It is to continue to fly to 12 Chinese cities, including Shanghai, Chongqing, Hangzhou, Xuzhou, Xiamen, Fuzhou, Zhangjiajie and Wuxi.
TransAsia said that at a meeting on Friday last week, board members approved a proposal to make a rights issue by selling 125 million new shares to raise NT$1 billion (US$32 million) to boost its working capital.
The issue price has been tentatively set at NT$8 per share.
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