TransAsia Airways board approved (20-Nov-2013) plans to establish a subsidiary tentatively named Chuanmin Air Transport Co Ltd with an estimated investment of TWD2000 million (USD66.7 million) to TWD3000 million (USD100 million), with the funds to come from the carrier’s long-term funds. The proposed start-up will primarily operate scheduled and non-scheduled domestic and international passenger services, cargo, mail and other civil air transport operations and other related businesses. TransAsia stated the objective of the start-up is to “cater to different segments and expand air operation.” TransAsia also stated the start-up will be Taiwan’s first LCC, launching a competition for the public to name the start-up with the winner to be awarded unlimited flights on TransAsia for 10 years. TransAsia chairman Vincent Lin said the carrier will not only be the first Taiwan-owned LCC but also the only one that puts a priority on the needs and purchasing habits of Taiwanese travellers. Mr Lin stated the development of LCCs has now become a global trend, particularly LCCs entering the Taiwan market, and one that Taiwan can not be absent in. Mr Lin reiterated the LCC will be 100% owned by the TransAsia Airways Group and will have fleet comprising of two to three A320/A321s initially with flight radius within five hours, including to Southeast Asia, Northeast Asia as well as second- and third-tier cities in mainland China, stating "we will lease brand new aircraft for a brand new airline. We will use the best equipment possible." More details on routes is expected to be announced in three to six months. Mr Lin said he hopes the LCC will commence operations at the end of Nov-2014. [more - original PR - Chinese I][more - original PR - Chinese II][more - original PR - Chinese III]
TransAsia Airways board approves plan to establish Taiwan's first LCC, could commence op in 1 year
You may also be interested in the following articles...
LCC CEOs to lead discussions at CAPA North Asia LCC Summit, Tokyo, Jun-7/8-2016
Leaders of North Asia’s low cost carriers (LCCs) will gather in Narita on Jun-7/8 for CAPA’s North Asia LCC Summit.
Hosted by Narita Airport, the Summit marks 12 years of CAPA’s flagship series of LCC events in Asia and marks CAPA’s second return to Japan.
Featuring over 40 speakers, including senior executives from all of North Asia's LCCs, and with simultaneous translation in English, Japanese, Korean and Mandarin, the Summit will explore the commercial drivers for LCC growth in this region, as the market opens.
North Asia has yet to experience the rapid expansion of LCCs that has occurred in Southeast Asia - but that is changing quickly.
Monarch Airlines: group receives new cash from Greybull Capital but profit outlook is down
The latest investment in the Monarch Group by its majority shareholder Greybull Capital avoided the loss of its ATOL licences and the possible suspension of operations. Moreover, it has given Monarch the opportunity to bridge the gap between now and the planned delivery of the first of its new 30 Boeing 737MAX aircraft in 2018.
Nevertheless, Monarch continues to face significant challenges. Europe's short/medium-haul markets are feeling significant downward pressure on unit revenue – particularly in the leisure markets that Monarch serves. This is due to overcapacity and concerns about terrorism in key Monarch markets. Brexit and the sharp devaluation of GBP (it has fallen by 30% against the EUR over the past 12 months) are further challenges for the LCC.
Although Monarch quickly quashed rumours of its financial difficulties in late Sep-2016 and then secured new funds, its commentary indicated that its profit for the year to Oct-2016 would be lower than in the previous year. It has an uneven track record of profitability and has often flown with close to empty cash reserves. Those reserves have been partially replenished, but only sustainable improvements in profitability will avoid the need for further cash calls in the future.