Local airline companies have launched a second round of “flights to nowhere” for the Qixi Festival (七夕情人節), or Lovers’ Day, in an effort to recover some revenue lost due to the COVID-19 pandemic.
Starlux Airlines Co (星宇航空) is offering two “Love is in the Air” flights on Saturday next week, three days before the festival, allowing couples to enjoy an entire three-seat row to themselves, which helps with social distancing, it said yesterday.
Like its first special flights program, its A321-neo planes would not land in any foreign airport, but would drop to an altitude of between 2,438m and 4,572m, compared with regular commercial flights’ altitude of above 9,144m to give passengers a better view of Taiwan’s coast and the Pratas Islands (Dongsha Islands, 東沙群島), the airline said.
Photo: Chu Pei-hsiung, Taipei Times
A total of 376 slots for the two flights were sold out within five minutes after going on sale yesterday, much better than the company expected, Starlux spokesman Nieh Kuo-wei (聶國維) told the Taipei Times by telephone.
With tickets priced at NT$5,520 (US$187) for an economy-class seat and NT$12,520 for a business-class seats along with accommodation at a five-star hotel, Starlux is expected to make at least NT$2.18 million in revenue from the two flights.
“It is not our goal to make a good profit from the ‘fly-to-nowhere’ programs, as we have to spend more time and resources designing these products and gaining approval from the regulator. It would be good if we could break even,” Nieh said.
However, consumers who are satisfied with Starlux’s special program and services might turn into loyal clients who would continue flying with the airline after the pandemic, he said.
China Airlines Ltd (CAL, 中華航空), which is also slated to launch one Lovers’ Day inspired flight for Saturday next week, saw all of its 108 seats sold out yesterday.
With tickets priced at NT$7,374 for an economy-class seat and NT$8,899 for a business-class seat, CAL is expected to post revenue of NT$808,592 from the flight.
CAL offered its first “fly-to-nowhere” program on Father’s Day and is to offer a second flight today.
“These programs are specially designed due to the pandemic, but I do not think that their revenue could replace those generated by our regular flights,” CAL spokesman Jason Liu (劉朝洋) said by telephone.
EVA Airways Corp (長榮航空) said that these special programs help maintain cash flow, but could not offset lost revenue due to the cancelation of international flights, an official said by telephone yesterday.
“It is better than doing nothing... For example, when passengers buy duty-free goods on board, duty-free stores, which have also been affected by the outbreak, benefit, too,” the official said.
Tigerair Taiwan Ltd (台灣虎航), the nation’s only low-cost carrier, is planning to launch more “fly-to-nowhere” programs by the end of this year, which would feature different themes and routes so consumers would not be bored, spokesman Bernard Hsu (許致遠) said by telephone.
As the carrier used to focus on flights between Taiwan and neighboring countries such as Japan and South Korea, it needs to do more research for the special programs, Hsu said.
“As such programs are conducted twice a month at most, we cannot rely on them [for income], but count more on the cargo business,” Hsu said.
AI SPLURGE: The four major US tech companies have lost more than US$950 billion in value since releasing earnings and outlooks, while equipment makers were gaining Four of the biggest US technology companies together have forecast capital expenditures that would reach about US$650 billion this year — a flood of cash earmarked for new data centers and all the gear within them. The spending planned by Alphabet Inc, Amazon.com Inc, Meta Platforms Inc and Microsoft Corp, all in pursuit of dominance in the still-nascent market for artificial intelligence (AI) tools, is a boom without a parallel this century. Each of the companies’ estimates for this year is expected either near or surpass their budgets for the past three years combined. They would set a high-watermark for capital spending
China’s top chipmaker has warned that breakaway spending on artificial intelligence (AI) chips is bringing forward years of future demand, raising the risk that some data centers could sit idle. “Companies would love to build 10 years’ worth of data center capacity within one or two years,” Semiconductor Manufacturing International Corp (SMIC, 中芯) cochief executive officer Zhao Haijun (趙海軍) said yesterday on a call with analysts. “As for what exactly these data centers will do, that hasn’t been fully thought through.” Moody’s Ratings projects that AI-related infrastructure investment would exceed US$3 trillion over the next five years, as developers pour eye-watering sums
Bank of America Corp nearly doubled its forecast for the nation’s economic growth this year, adding to a slew of upgrades even after a rip-roaring last year propelled by demand for artificial intelligence (AI). The firm lifted its projection to 8 percent from 4.5 percent on “relentless global demand” for the hardware that Taiwanese companies make, according to a note dated yesterday by analysts including Xiaoqing Pi (皮曉青). Taiwan’s GDP expanded 8.63 percent last year, the fastest pace since 2010. The increase “reflects our sustained optimism over Taiwan’s technology driven expansion and is reinforced by several recent developments,” including a more stable currency,
NEW IMPORTS: Car dealer PG Union Corp said it would consider introducing US-made models such as the Jeep Grand Cherokee and Stellantis’ RAM 1500 to Taiwan Tesla Taiwan yesterday said that it does not plan to cut its car prices in the wake of Washington and Taipei signing the Agreement on Reciprocal Trade on Thursday to eliminate tariffs on US-made cars. On the other hand, Mercedes-Benz Taiwan said it is planning to lower the price of its five models imported from the US after the zero tariff comes into effect. Tesla in a statement said it has no plan to adjust the prices of the US-made Model 3, Model S and Model X as tariffs are not the only factor the automaker uses to determine pricing policies. Tesla said