China Airlines Ltd (CAL, 中華航空) yesterday said that its low-cost carrier Tigerair Taiwan (台灣虎航) returned to profit last month, following the ending of the subsidiary’s partnership with a Singaporean peer.
Tigerair Taiwan, a joint venture between CAL and Tiger Airways Singapore Pte Ltd, became the Taiwanese carrier’s wholly owned subsidiary after it bought back a 10 percent stake held by its Singaporean partner for an undisclosed amount in December last year.
The low-cost carrier has been struggling since it began operations in 2014.
“Tigerair Taiwan will be operated as an independent brand, and we believe that the change would bolster the company’s image among consumers,” Tigerair Taiwan chief financial officer and spokesperson Hansen Lin (林俊男) said.
Lin attributed the company’s recent turnaround to scrapping loss-making routes and adding flights to popular destinations.
The company has been cutting back routes to destinations further than four hours flight time from Taiwan in favor of flights of between two and three hours, which suits the low-cost carrier model, Lin said, adding that among new destinations that are to be introduced this year are Jeju Island and Daegu in South Korea.
Sales from travel agencies increased last month, Lin said, adding that backpackers were previously the company’s major source of revenue.
He said he expects the company’s average passenger load factor to improve to 80 percent by the end of this year, from its present 70 percent.
Meanwhile, Mandarin Airlines (華信航空), another CAL subsidiary focusing on regional and domestic flights, is to see a significant expansion of its fleet this year, CAL chairman Ho Nuan-hsuan (何煖軒) said.
Mandarin Airlines is to form a second fleet this year, with aircraft procurement slated to be completed in the first half, Ho said.
“We will not be looking for new aircraft, as there are many used jets on the market right now,” Ho said, while declining to confirm if the company is eyeing the assets of shuttered TransAsia Airways Corp (復興航空).
“Mandarin Airlines has a fleet of six jet airliners and we are looking to dispose of them and lease aircraft suitable for short-haul flights of about two hours,” Ho said.
Ho gave an upbeat outlook on CAL, saying that newly added direct flights to Europe have been running at near full capacity.
However, the company has pushed back the launch of direct flights to London to near the end of this year due to delays in the delivery of its new Airbus SAS A350 jets, Ho said.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Nano-X Imaging Ltd, a start-up founded by Israeli investor Ran Poliakine, is joining forces with South Korean chipmaker SK Hynix Inc to build a machine that could disrupt a century-old X-ray industry. Valued at about US$2 billion after listing on the NASDAQ last month, Nano-X is seeking to transform a multibillion-dollar industry that has essentially relied on the same technology since Nobel Prize in Physics winner Wilhelm Roentgen discovered X-rays in the late 19th century. Nano-X’s device uses semiconductors instead of metal filaments to generate X-rays. The backing of SK Hynix, the world’s second-largest maker of memory chips, is a boost for
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into