China Airlines begins full service airline fare unbundling in Asia. Going back will be difficult

The hybridisation of airlines blurs the lines between full service and low cost airlines in Europe and the US - if those terms are even any longer applicable. Yet in Asia the landscape has been more segmented.

But now that appears to be changing. With little fanfare, China Airlines has made a leap towards unbundling services. For now it is a tentative move: China Airlines is offering a new hand baggage-only fare between Taipei and Tokyo Narita. It is not the base/entry fare but rather is subject to inventory control, and for example is more available during off-peak flights.

China Airlines intends to expand the offering gradually to more routes. It may seem a perplexing countermeasure for LCCs, when China Airlines has its own LCC subsidiary - Tigerair Taiwan, whose second largest route is to Tokyo Narita. Yet the fare is also a way to compete with other full service airlines, which are for now still larger than LCCs. China Airlines is exploring what else it can do for differentiation, but is reluctant to make any changes that impact the passenger experience after check-in. There are many ways for this to evolve - from China Airlines and competitors. What appears certain with this unbundling is that there is no going back. For China Airlines, or for the Asia Pacific industry.