Mandarin Airlines yesterday said that it plans to suspend its Kaohsiung-Hualien and Taichung-Hualien routes next month due to persistently low passenger demand and mounting financial losses.
Mandarin Airlines chairman Chen Ta-chun (陳大鈞) confirmed the decision at the sidelines of an event celebrating the airline’s 35th anniversary.
Chen had said earlier this year that both routes have been operating at only about 20 to 30 percent capacity, far below sustainable levels.
Photo: Hunag Yi-ching, Taipei Times
The airline has estimated that continued operation of the two routes could result in losses of approximately NT$70 million (US$2.23 million) this year.
The company has attempted to improve passenger numbers but acknowledged that achieving meaningful recovery in demand remains difficult, Chen said yesterday.
INSUFFICIENT DEMAND
The Civil Aviation Administration (CAA) said that it would conduct a comprehensive review once the airline submits formal suspension applications.
CAA Director-General Ho Shu-ping (何淑萍) said that the agency is aware of airlines’ operational challenges on domestic routes to Hualien, particularly the balance between low ridership and fixed operating costs.
A broader cost structure review for domestic airfare caps — unchanged for years — is under way, although it needs time for full assessment, she said.
The domestic flight carrier completed the introduction of 13 ATR 72-600 short-haul, turboprop aircraft as part of its fleet modernization plan. To meet peak summer travel demand, it plans to lease Airbus A321neo aircraft from its parent group for next month and August, mainly supporting outlying island routes.
PEAK SEASON
In the long run, the carrier said that it is preparing to deploy the A321neo for regional international services beginning next year, a step toward expanded cross-border operations
As part of celebratory activities for its 35th anniversary, the airline partnered with Taiwanese sports apparel brand Taiwolf to launch a new weekend uniform for cabin crew.
The design of the outfit, called an “energy uniform,” is inspired by the uniforms of the national baseball team and uses mainly navy blue and orange colors.
The airline’s flight attendants would wear the energy uniform on weekends beginning Saturday, Chen said.
To celebrate the anniversary, the airline is offering a 35 percent discount on all domestic routes from yesterday to Friday, which is available to only the first 3,500 travelers who make flight reservations. The airline’s holiday tour package is also offering an additional promotion for outlying island flight-and-hotel packages, with the second traveler receiving a rebate of NT$500.
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