Tigerair Taiwan enters profitability and plans to settle in before growing fleet

Tigerair Taiwan has entered profitability after coming under the full ownership of China Airlines and separating itself from Tigerair Group as well as seconded management. After V Air ceased operation, Tigerair Taiwan became Taiwan's only local LCC but with accumulated losses of TWD1.3 billion (USD43.1 million). Tigerair Taiwan aims to reverse this within four years and is already under way with a TWD174 million (USD5.7 million) profit in 1H2017 compared to a loss of TWD420 (USD13.9 million) in 1H2016.

Tigerair Taiwan is being more flexible by accommodating tour groups and charters. A notable charter programme to Japan could lead to the airline adding scheduled service. Southeast Asia is of interest to Tigerair Taiwan but is over-competitive and faces protectionism via slot allocation. Korea is significantly under-served but bilaterally constrained.

Tigerair Taiwan will receive its 11th A320 by the end of 2017, slightly behind its original forecast of 12 aircraft in three years. Tigerair Taiwan is sensibly waiting for opportunities to emerge before adding aircraft.