■ Aviation
Qantas takes on Virgin Blue
Qantas Airways is planning to launch a low cost airline in Australia in a move aimed at winning back passengers from discount carrier, Virgin Blue. "This demonstrates Qantas' commitment to ensuring our ongoing competitiveness," chairwoman Margaret Jackson said at the carrier's annual meeting yesterday. She gave no details of the new operation and did not say when it would start flying. But she said staff salaries might be reduced. In August, Qantas said it had put a team together to consider whether it should start a low cost carrier in the leisure markets. It had expected to make a decision around next month. Jackson told shareholders the transition to a new cost base was essential to Qantas' longterm success.
■ Airlines
KLM union wins guarantees
KLM Royal Dutch Airlines NV, Europe's fourth-biggest airline, agreed to union demands that it not fire workers for five years after its takeover by Air France SA, Algemeen Dagblad reported, citing an unidentified spokesman for the Dutch airline. KLM union FNV Bondgenoten had made its approval of the takeover dependent on the job guarantee, the newspaper said. One condition of the guarantee is that the Amstelveen, Netherlands-based carrier won't have to stick to the accord in the case of "external factors" such as wars, epidemics and terrorist acts, Algemeen Dagblad said. The carrier will also reconsider the agreement should KLM's profitability vary greatly from that of Europe's other largest airlines, the newspaper cited the KLM spokesman as saying.
■ Currencies
Moody's upgrades China
International rating agency Moody's Investors Service yesterday said it has upgraded the foreign currency ratings for China, Hong Kong and Macau, with the former British and Portuguese colonies now seen as slightly stronger than China. Moody's said in a statement that it raised the ceiling for China's foreign currency bonds and long-term foreign currency bonds to A2 from A3, with foreign currency bank deposits at A2, up from Baa1, and foreign currency notes and deposits at Prime-1, up from Prime-2. At the same time, the agency upgraded Hong Kong's foreign currency ceilings for bonds and bank deposits to A1 from A3, while affirming Hong Kong's Aa3 domestic currency rating. The agency also upgraded Macau's foreign currency ceilings for bonds and bank deposits to A1 from A3 and upgraded to A1 its foreign and domestic currency issuer ratings.
■ Telecoms
Ericsson has first profit
Sony Ericsson Mobile Communications Ltd, the world's fifth-largest maker of cellular phones, had its first quarterly profit ever as new handset models boosted sales. The net income at the London-based joint venture of Sony Corp and Ericsson AB was 62 million euros (US$73 million) in the three months ended September, compared with a loss of 93 million euros in the year-earlier period, it said in a Hugin news service release. Sales jumped 50 percent to 1.3 billion euros. The venture, formed in October 2001 with the aim to dethrone market leader Nokia Oyj, is boosting sales and taking market share with new models such as its T610 camera-phone. The venture is also looking to reduce costs after announcing 500 job cuts in June and stopping making some US phones.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source