TransAsia Airways chairman Vincent Lin reiterated (22-Aug-2012) calls for the Taiwanese government to actively create a favourable policy environment for the development of LCCs and to consider combining Taiwan’s three listed airlines in China Airlines, EVA Air and TransAsia to establish a new LCC in response to international competition. Mr Lin stated Taiwan’s civil aviation is already facing competition on regional routes with LCCs in Southeast Asia and Northeast Asia increasingly establishing Taiwan as a gateway to Japan, South Korea, Singapore, Malaysia and the Philippines, and may even operate cross-Strait flights in the future. Mr Lin also stated Taiwanese airlines face many obstacles in the domestic market including lack of a clear civil aviation development policy from the government, limitations of current civil aviation regulations including fairness in the distribution of air traffic rights, as well as the competition posed by domestic train and high-speed rail networks. On the international market, Mr Lin noted the impact of oil prices the global economy, competition from Japan, South Korea and Hong Kong in the international transit market as well as the threat from mainland China in transits to Europe and the Americas. [more - Original PR - Chinese]
TransAsia chairman reiterates calls for government to create favourable policy environment for LCCs
You may also be interested in the following articles...
China Airlines to resume Taipei-London, becomes the last major Asian flag airline to fly to London
China Airlines plans to resume Taipei-London service with the A350 by the end of 2016. The swift interest and compressed timescale may reflect the airline's new government-appointed chairman wanting to refocus the airline. The number of Taiwanese visitors to the UK has grown since China Airlines exited London in 2012, but volume is still small and one-stop competition has grown in what is mostly a leisure and price-sensitive market. China Airlines is stressing the opportunity to connect London with its growing Australian markets, but its three online Australian cities are served less than daily. Australia-London/Europe competition has also grown, so China Airlines – despite an improved product to London – will likely pick up fringe traffic. There are stronger opportunities for the relatively sleepy airline in the dynamic and booming Northeast Asia.
China Airlines will become the last major Asian flag airline at London Heathrow following the previous entry of Garuda, Philippine Airlines and Vietnam Airlines. Only Mongolia's MIAT is absent. 12 Asian airlines fly long haul but do not serve London. Besides MIAT and Hong Kong Airlines, the only Asian airlines not in London are Mainland Chinese airlines or long haul LCCs.
TransAsia & V Air dual brand strategy collapses: TransAsia to become hybrid and V Air to shut down
Taiwan’s V Air, the LCC unit of TransAsia Airways, will end operations in Sep-2016 having carried only half a million passengers since its Dec-2014 launch. V Air was constantly the underdog to Tigerair Taiwan, although both are loss-making. V Air becomes the second notable Northeast Asian LCC to exit the market after AirAsia Japan (Mk I).
Whereas AirAsia Japan suffered from a shareholder dispute, V Air and TransAsia failed due to an unsuccessful dual brand strategy. The problem was one from the start, not a scenario that unravelled. V Air could have made decisions differently, but ultimately it hinged on TransAsia.
V Air’s collapse is not self-inflicted but rather, a failure of TransAsia. TransAsia’s decision to launch a dual brand strategy was unusual, given the small size of TransAsia and its undefined market position. Instead of the sum of the two airlines being greater than the individual parts, having two sub-scale airlines fragmented both. TransAsia operates 10 jet narrowbodies while V Air operates four. TransAsia will now restructure to pursue a hybrid business model, combining the two.