TransAsia names LCC 'V Air' and 'Wei Hang'. Cuddly bear becomes the dual brand's low price image

Airlines embarking on dual-brand full-service and low-cost strategies tend to place much focus on the low-cost unit. While discipline there is needed, often overlooked is ensuring the other component - the full-service carrier - can attain a yield premium and does not suffer as the LCC sibling gains ground.

This is the concern in Taiwan with TransAsia Airways, whose newly-named V Air LCC subsidiary comes with a logo depicting a smiling bear (with a heart for a nose) making a familiar peace-symbol pose, which may be too cute and cuddly for some but should bode well in the regional leisure markets V Air will target. The question is where that leaves TransAsia, whose brand is nondescript compared to V and whose markets are largely better suited to a low-cost operation than full-service. Scale is a challenge: Taiwan is a small market and TransAsia only has 11 jet aircraft while V Air intends to launch with three A320/A321 aircraft and grow by two aircraft a year. V Air could quickly overshadow TransAsia, or alternatively, trying to make both brands sustainable could artificially constrain V Air.