Taipei Times: How will the launch of the flights between Taipei and Hong Kong impact Dragon Airlines' (
Stanley Hui (
TT: What did you think about the way in which the negotiations of the air services agreement were dragged out over political disputes as opposed to the comparatively smooth signing of the original deal between the carriers in 1996?
PHOTO COURTESY OF DRAGONAIR
Hui: The negotiation model was determined by the authorities on the two sides of the Strait and we just have to follow that. One thing we have to recognize and accept at the end of the day is that traffic rights are controlled by the government. Taiwan didn't want to go along because they wanted to use the same old model with the four airlines doing the renegotiating but eventually they adjusted their position. I think there was less political consideration in the end and that helped put the deal together. I just wish that the agreement had been concluded a year earlier.
TT: With such low flight frequencies compared with the other major carriers on the route, Dragonair will have a tough time competing. How will your unique position of being the only airline among the cross-strait carriers permitted to fly from Hong Kong into China help?
Hui: We will compete mainly on our connectivity to China that we have through Hong Kong and our reputation for service and not so much on pricing. Frankly, pricing may in some ways reflect your competitive position but it's not the only consideration for everyone. The Taiwan-mainland China market is very important to us, but obviously there is only so much we can do with only three flights per day from Taipei. For the time being it's only on the flight from Hong Kong to Shanghai where passengers can stay onboard the plane for the short stopover that we can really provide more convenience to passengers.
We see pent-up demand on the route for services from Taipei to Hong Kong, and we also believe Dragonair's mainland connectivity will give us a real competitive edge in the marketplace for those passengers who transit Hong Kong and travel onward to cities in mainland China. Given the volume to Shanghai, that will remain the focus and, maybe eventually also Beijing.
TT: So cutting prices won't be a main part of your competitive plan?
Hui: We are positioning ourselves in accordance with our competitive position in the market. We should be pricing ourselves at about the same level as the other leading carriers but I think between Taipei and Hong Kong, given our inferior frequencies, we could well be pricing lower than the dominant carriers.
TT: While Hong Kong and Taiwan-based airlines dominate cross-strait travel, how do you see Dragonair's position changing if and when direct air links are opened between China and Taiwan?
Hui: The market will be a lot bigger for everyone so there could well be a short-term dip but overall there will be a much bigger market when that happens and we will continue to play a very important role in that relationship.
TT: According to a report in the `South China Morning Post' on Wednesday, Dragonair will spend up to US$150 million to buy three to five regional jets to expand its network within China to include smaller destinations. Is this the case?
Hui: Dragonair has for some time been studying the viability of operating small jets to mainland destinations. The study is ongoing and therefore no decision on deploying such aircraft has been made. Dragonair has always operated services on the basis of market demand and this continues to be the case.
Taiwan will prioritize the development of silicon photonics by taking advantage of its strength in the semiconductor industry to build another shield to protect the local economy, National Development Council (NDC) Minister Paul Liu (劉鏡清) said yesterday. Speaking at a meeting of the legislature’s Economics Committee, Liu said Taiwan already has the artificial intelligence (AI) industry as a shield, after the semiconductor industry, to safeguard the country, and is looking at new unique fields to build more economic shields. While Taiwan will further strengthen its existing shields, over the longer term, the country is determined to focus on such potential segments as
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
RSS