Shares of the nation’s two leading airlines plunged yesterday as investors worried that the Omicron variant of SARS-CoV-2 would prompt more countries to tighten border controls, curbing the already sluggish recovery of international travel.
The US, Canada, the UK and the EU have announced bans on flights from southern Africa, where the Omicron variant was first detected, while several Asia-Pacific countries, such as the Philippines, Australia, Japan and Singapore, have also tightened their border controls.
Shares of EVA Airways Corp (長榮航空) fell 8.12 percent to NT$23.75 and China Airlines Ltd (中華航空) declined 7.3 percent to NT$24.75, compared with a dip of 0.24 percent in the broader market, Taiwan Stock Exchange (TWSE) data showed.
Photo courtesy of China Airlines Ltd
Their shares were also the most actively traded among stocks listed on the TWSE yesterday, with 717 million CAL shares being traded for a total turnover of NT$17.9 billion (US$643.7 million) and 301 million EVA shares being traded with a turnover of NT$20 billion, exchange data showed.
Prior to the advent of the Omicron variant, EVA Airways had said it would add new services to Milan, Italy; Munich, Germany; and Clark, the Philippines, next year, but the company has yet to finalize the launch dates of the new services.
Starlux Airlines Co (星宇航空) has announced that it would add new direct flights from Taiwan to Fukuoka, Japan, from February next year, but whether the service would start as scheduled remains unknown, as the Japanese government yesterday banned all foreign tourists from entering the country.
Separately, CAL received an Airbus SE A321neo jet, which would also carry cargo and help raise the airline’s cargo capacity by at least 10 percent.
The plane would be used in routes in Northeast and Southeast Asia, and between Taiwan and China, CAL said.
CAL would take delivery of another A321neo jet by the end of this year, and 10 more by the end of next year, it said.
Overall, the airline would take delivery of 25 A321neo aircraft — 14 leased and 11 purchased — in coming years, it added.
CLIENTS’ RIGHTS: Banking Bureau Deputy Director-General Lin Chih-chi said the buyer and Citibank Taiwan would need to disclose changes to branch operations DBS Bank Taiwan (星展台灣), the local unit of Singapore-based DBS Group Holdings Ltd, has reportedly won a bid to acquire Citibank Taiwan Ltd’s (花旗台灣) consumer banking business, but the two companies declined to confirm the report yesterday. Citibank Taiwan’s consumer banking business is to be sold for about NT$60 billion (US$2.17 billion) to DBS Taiwan, the Chinese-language Economic Daily News reported on Sunday. DBS Taiwan and its parent company are expediting the negotiations with the seller’s US-based parent company, while other local bidders, including Fubon Financial Holding Co (富邦金控) and Cathay Financial Holding Co (國泰金控), have dropped their bids, the report said. Citibank
Intel Corp yesterday said it has placed its first order with ASML Holding NV to purchase the semiconductor industry’s first TWINSCAN EXE: 5200 system, as the US chip giant aims to compete with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in advancing to 2-nanometer process technology. The Dutch semiconductor equipment maker’s TWINSCAN EXE:5200 system is an extreme ultraviolet (EUV) high-volume production system with a high numerical aperture (NA) that can produce 220 wafers per hour, more than the 150 wafers that its previous generation TWINSCAN EXE:5000 system can handle. ASML aims to launch the new system in 2024. ASML president and chief
MediaTek Inc (聯發科), the world’s biggest 5G chip supplier, saw its ranking rise by one notch to No. 7 last year among world semiconductor vendors, as it benefited from the rapid 5G smartphone uptake in China after Huawei Technologies Co (華為) was forced to exit the market, Gartner Inc said in a report yesterday. MediaTek’s revenue soared 58.8 percent to US$17.45 billion last year from US$10.99 billion in 2020, outpacing the global semiconductor industry’s growth of 25 percent, according to Gartner’s tally. That gave MediaTek a 3 percent market share. The Hsinchu-based chip company ranked No. 8 in 2020, behind Texas Instruments
Siltronic AG cast doubt on a planned US$5.3 billion takeover by GlobalWafers Co (環球晶圓), saying the German Ministry of Economic Affairs and Climate Action’s feedback so far was opaque and offered no clear resolution on how to win approval for the deal. During recent discussions, the companies did not receive any information as to whether and under which conditions a clearance for the takeover might be issued, the German company said in a regulatory filing on Friday following a news report on remedies the companies have offered. In the ministry’s view “in this case, a mitigation agreement is apparently not suitable