Taiwan LCCs: Tigerair Taiwan to accelerate expansion following IPO
The LCC sector has developed at a surprisingly slow pace in Taiwan. There is only one Taiwanese LCC, Tigerair Taiwan, compared to three - and soon four - international full service competitors.
Tigerair Taiwan turns five years old on 26-Sep-2019 but has a fleet of only 11 A320s and has not added any aircraft in nearly two years. The Taiwanese flag carrier China Airlines has been cautious at growing its budget subsidiary and reluctant to pursue cooperation.
An upcoming initial public offering (IPO) will lead to an accelerated rate of expansion at Tigerair Taiwan as 15 new A320neos are delivered. Tigerair Taiwan should be able to start growing faster than Taiwan's overall LCC market, which is dominated by foreign LCCs.
A larger and stronger Tigerair Taiwan should lift China Airlines' outlook when competition intensifies in Taiwan following the launch of a third full service long haul airline. China Airlines needs to follow Asia Pacific peers such as Qantas, Singapore Airlines and All Nippon Airways in pursuing a more robust multi-brand strategy and fully embracing the opportunities at the budget end of the market.
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