TransAsia Airways chairman Vincent Lin stated the carrier will double its route network over the next five years and increase its seat capacity by 20% p/a between now and 2020 based on its future fleet delivery plans. Mr Lin, as quoted by China Times, stated new routes under consideration include services to Thailand, Indonesia, Malaysia, Japan, South Korea, Hong Kong and Macau. The carrier is also seeking rights to Sydney and Guam as well as destinations within nine hours flights in Australia, New Zealand and the Middle East. As previously reported by CAPA, TransAsia selected (14-Feb-2012) International Aero Engines’ (IAE) V2500 engines to power six A321 standard aircraft on firm order with Airbus as well as Pratt & Whitney’s PW1100G-JM engines to power six firm and six option A321neo aircraft.
TransAsia to double route network, 20% capacity growth p/a
You may also be interested in the following articles...
LATAM and GOL: Excess capacity could threaten arrival of crucial recovery in Brazil domestic market
After two years of weak demand and pricing, some signs of stabilisation are emerging in Brazil; however the country’s two largest airlines are adopting an understandably cautious tone in their assessment of the operating environment. Although both LATAM Airlines Brazil and Gol have significantly reduced their domestic capacity during the last year and a half, both airlines have concluded that some excess supply remains in the market place. Fast-growing Azul has opted to slow its capacity growth in 2016, but Brazil’s fourth largest airline Avianca Brazil has continued growth in order to build its market share within the country.
LATAM Airlines Brazil also believes its performance on routes between the US and Brazil is improving, which is a similar conclusion drawn by US airlines operating between the two countries. For LATAM, the improved performance is offsetting some weakness on other long haul routes from its Spanish-speaking countries.
Neither airline has offered specific capacity guidance for 2017, but LATAM Airlines Brazil and Gol are likely to keep their supply restraint intact. Pricing in the domestic market has yet to stabilise, and competitive capacity actions will result in those airlines keeping their own ASK increases at bay in order to sustain a favourable supply/demand balance.
Taiwan's TransAsia Airways collapses, having failed to address changes in Asian aviation
The repeated strategic failures of TransAsia Airways have resulted in the Taiwanese carrier being punished with market exit. Outside the domestic market TransAsia amassed little presence, and its departure will not greatly affect the market. But its collapse is an example for all: TransAsia is an unfortunate example of having failed to address market changes around Asia, and more specifically – needing to evolve out of a small regional full service airline.
There will undoubtedly be a superficial narrative that TransAsia struggled to recover from two tragic fatal accidents. But as at Malaysia Airlines, TransAsia's underlying problems existed before the crashes. Unlike Malaysia Airlines, TransAsia did not move fast enough to get its house in order.