On Saturday, president-elect Ma Ying-jeou (
The news, coupled with Ma's other election campaign promises to open up cross-strait transportation links, might have been expected to create a wave of euphoria in the nation's aviation industry, which has been hard hit by the launch of the high speed rail system last year.
The four domestic airlines -- Mandarin Airlines, Uni Airways, TransAsia Airways and Far Eastern Air Transport -- suffered huge losses last year, with Far Eastern Air on the brink of bankruptcy earlier this month. The companies have pinned their hopes on cross-strait deregulation to stay alive.
The direct charter flight policy would also be good news for international carriers China Airlines and EVA Airways.
But it will take more than direct flights to save some of these airlines. As the domestic carriers don't know how to improve operational efficiency and where to trim costs to stem their losses, their long-term prospects are contentious.
One of the myths about direct flights is that small Taiwanese airlines will be able to boost their bottomlines, while big carriers will see their revenues skyrocket.
The fear among many industry analysts, however, is that too many airlines plying the charter routes could undercut the ability of carriers to turn a profit. If everyone wants the same route, fewer seats will be filled on each plane, not more. It seems unlikely that these companies will be able to eliminate their old bad habits without aviation authorities intervening to allocate routes.
Moreover, the soaring cost of fuel, rising airport taxes in China and competition from other regional airlines will continue to pressure local carriers. To stay alive, they need to reduce operating costs and increase profitability.
The nation's aviation industry has long faced a problem of overcapacity in a market large enough for just two players. Industry consolidation is necessary. But it is unlikely the carriers will initiate any mergers or joint operations themselves, given the disparity of their fleets and corporate cultures and the incompatibility of their present routes.
Even though Mandarin Airlines merged with Formosa Airlines in 1999, the sector remains highly fragmented. Strong competition among all the players has kept talk of mergers at bay, while aviation authorities have not offered enough incentives to encourage consolidation. This issue now seems completely off the books; no one will want to concede anything with the golden goose of cross-strait flights so near.
The next administration must look beyond the allure of increased cross-strait travel and try to develop a sustainable plan for the aviation industry. To help revitalize this sector, the incoming government will have to improve the domestic business environment and airport infrastructure if Taiwan's aviation industry is to survive alongside its regional rivals.
There is much evidence that the Chinese Communist Party (CCP) is sending soldiers from the People’s Liberation Army (PLA) to support Russia’s invasion of Ukraine — and is learning lessons for a future war against Taiwan. Until now, the CCP has claimed that they have not sent PLA personnel to support Russian aggression. On 18 April, Ukrainian President Volodymyr Zelinskiy announced that the CCP is supplying war supplies such as gunpowder, artillery, and weapons subcomponents to Russia. When Zelinskiy announced on 9 April that the Ukrainian Army had captured two Chinese nationals fighting with Russians on the front line with details
On a quiet lane in Taipei’s central Daan District (大安), an otherwise unremarkable high-rise is marked by a police guard and a tawdry A4 printout from the Ministry of Foreign Affairs indicating an “embassy area.” Keen observers would see the emblem of the Holy See, one of Taiwan’s 12 so-called “diplomatic allies.” Unlike Taipei’s other embassies and quasi-consulates, no national flag flies there, nor is there a plaque indicating what country’s embassy this is. Visitors hoping to sign a condolence book for the late Pope Francis would instead have to visit the Italian Trade Office, adjacent to Taipei 101. The death of
The Chinese Nationalist Party (KMT), joined by the Taiwan People’s Party (TPP), held a protest on Saturday on Ketagalan Boulevard in Taipei. They were essentially standing for the Chinese Communist Party (CCP), which is anxious about the mass recall campaign against KMT legislators. President William Lai (賴清德) said that if the opposition parties truly wanted to fight dictatorship, they should do so in Tiananmen Square — and at the very least, refrain from groveling to Chinese officials during their visits to China, alluding to meetings between KMT members and Chinese authorities. Now that China has been defined as a foreign hostile force,
On April 19, former president Chen Shui-bian (陳水扁) gave a public speech, his first in about 17 years. During the address at the Ketagalan Institute in Taipei, Chen’s words were vague and his tone was sour. He said that democracy should not be used as an echo chamber for a single politician, that people must be tolerant of other views, that the president should not act as a dictator and that the judiciary should not get involved in politics. He then went on to say that others with different opinions should not be criticized as “XX fellow travelers,” in reference to
RSS