TransAsia Airways Corp (復興航空) has set its sights on breaking even in the first quarter of next year as it winds down V Air (威航), its struggling low-cost carrier subsidiary.
TransAsia said it would launch five new routes before the end of this year to meet the demands of a rapidly changing Southeast Asian travel market, and expects earnings to stabilize as cost-saving measures begin to take effect.
The carrier yesterday launched new flights to Sendai, Japan, and Chiang Mai, Thailand, with plans to initiate flights to Fukuoka, Japan, Bangkok and Busan, South Korea, before the end of the year.
Flights to Macau, which were canceled this month, are slated to resume in the first quarter of next year, the company said at a news conference in Taipei.
“We are expecting a turnaround as the new routes bring improvements to sales and operating efficiency,” chairman Vincent Lin (林明昇) said, adding that he was upbeat on the Japanese market.
The company is anticipating disposal gains and reductions in recurring costs from four Airbus A330 aircraft, following its decision to halt the operations of V Air for one year beginning this month.
V Air had recorded monthly losses of about NT$40 million to NT$50 million (US$1.27 million to US$1.59 million), Lin said.
Disposal arrangements are to be finalized next month or in December, he said.
“Operations should begin to stabilize in the first quarter of next year following a restructuring,” Lin said.
He said that TransAsia’s London-based insurers had agreed to cut premiums by 73 percent in light of significant improvements to flight safety, which would cut its annual costs by NT$200 million.
TransAsia has begun to step out of the shadow of two fatal crashes in July 2014 and in February last year, which claimed 91 lives, as the company has fulfilled 67 recommendations by the US-based Flight Safety Foundation, and has been incident-free for the past 18 months under the Civil Aeronautics Administration’s supervision, Lin said.
“Our flight safety is recognized and employees’ morale has been boosted,” he said.
TransAsia shares gained 0.16 percent to NT$6.10 in Taipei trading yesterday.
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
Swancor Renewable Energy Co (上緯新能源) yesterday announced plans for a 4.4 gigawatt (GW) offshore wind project off Miaoli County as part of its commitment toward Taiwan’s energy transformation, the company said in a statement. The “Formosa 4” project includes three deep-water wind farms 18km to 20km off the coast, Swancor Renewable CEO Lucas Lin (林雍堯) said, adding that planning for the project began last year. A proposal for Formosa 4 was this week submitted to the Environmental Protection Agency (EPA), the company said. Swancor Renewable jointly developed the Formosa 1 project, a 128 megawatt (MW) wind farm about 4km off Miaoli and the
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,