China Airlines Ltd (中華航空) and its labor union on Thursday reached an agreement to distribute year-end bonuses of an average of six months wages, the best bonus distributed in the company’s 62-year history.
The airline is also to raise wages by at least 4 percent, matching salary increases for the nation’s teachers, military personnel and civil servants, the union said in a statement.
As the airline last year posted profit thanks to its booming air cargo business, the company would distribute generous bonuses, the union said.
Photo courtesy of China Airlines via CNA
With 21 cargo jets, China Airlines is the largest provider of air cargo services in Taiwan.
The company reported cumulative net profit of NT$1.55 billion (US$55.98 million) for the first three quarters of last year, compared with a net loss of NT$2.02 billion in the same period of 2020, the union said.
During the first 11 months of last year, revenue grew 16 percent annually to NT$121.94 billion, corporate data showed.
This year, the airline plans to continue focusing on its air cargo business, but would also try to boost its passenger business, the company said in a statement.
Separately, EVA Airways Corp (長榮航空) did not verify local media reports that it had agreed to distribute year-end bonuses of as high as about 1.5 months’ wages, but said that employees would receive bonuses based on their work performance.
EVA reported a cumulative net loss of NT$569 million in the first three quarters of last year, improving from a net loss of NT$3.64 billion in the same period of 2020, corporate data showed.
With seven cargo jets, EVA has a lower cargo capacity than China Airlines, and generated less revenue from its air freight business, data released by the two firms showed.
For the first 11 months of last year, EVA’s sales grew 11.8 percent to NT$91.5 billion, corporate data showed.
China Airlines’ share price fell 1.46 percent to NT$27 in Taipei trading yesterday, while EVA’s share price dipped 1.1 percent to NT$27, Taiwan Stock Exchange data showed.
Dutch brewing company Heineken NV yesterday said that it has reached an agreement to acquire a subsidiary brewery of Taiwan’s Sanyo Whisbih Group (三洋維士比集團). Heineken is to assume majority ownership and management rights of the Long Chuan Zuan Co (龍泉鑽興業) brewery in Pingtung County’s Neipu Township (內埔), the Dutch company said. It would become the first multinational brewing company to operate brewery in Taiwan once the acquisition is completed. The deal has been approved by the Ministry of Economic Affairs’ Investment Commission, but details of the financial transaction cannot be disclosed at this time, as terms of the settlement have not been completed,
LOOK WHO OWES: China’s exposure to Taiwanese banks was the second-largest, with Luxembourg third, followed by Hong Kong and Japan, the central bank said The US remained the largest debtor country to Taiwan’s banking sector for a 27th consecutive quarter in the first quarter of this year, with its exposure rising 8.3 percent from a quarter earlier on the back of an increase in US bonds, the central bank said on Friday. Data compiled by the central bank showed that outstanding international claims by Taiwanese banks on a direct risk basis to the US stood at US$125.38 billion as of the end of March. Department of Financial Inspection deputy head Pan Ya-hui (潘雅慧) said that the US Federal Reserve’s launch of a rate hike cycle in
GREEN CITY: The company is set to invest US$8 billion to make electric vehicles and batteries for a new city that would rely entirely on renewable energy sources Indonesia said that Hon Hai Precision Industry Co (鴻海精密) is considering investing in the country’s new capital city, a move that would bolster the US$34 billion construction project. Hon Hai, which is known as Foxconn Technology Group (富士康科技集團), is looking at setting up an electric bus system and an Internet of Things network at Nusantara, as Indonesia’s new capital is to be called, Indonesian Minister of Investment Bahlil Lahadalia said in a statement yesterday. Hon Hai chairman Young Liu (劉揚偉) met with Indonesian President Joko Widodo on Saturday to discuss the company’s plan to invest US$8 billion to build a manufacturing plant
WHOLLY OWNED SUBSIDIARY: Costco Wholesale said it expected the purchase of the remaining 45 percent stake to add 1 to 1.5 percent to its earnings per share US-based Costco Wholesale Corp on Thursday said that it had purchased the remaining 45 percent stake in Costco President Taiwan Inc (台灣好市多) for US$1.05 billion, making the local company a fully-owned unit. “We estimate that the purchase would add about 1 to 1.5 percent to [our] earnings per share,” Costco said in a statement. Costco President Taiwan was established as a joint venture with Kaohsiung-based President Group (大統集團), which held a 45 percent stake. Since the first Costco store opened in Kaohsiung in 1997, 14 outlets have been set up in Taiwan, company data showed. PROFITABLE Three Costco stores in Taiwan — in Taipei’s Neihu