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TransAsia growth Pt III: considering intercontinental services as cross-Strait capacity limits bite

Analysis

In this third and final part on the growth of Taiwan's TransAsia, the carrier sees great potential for cross-Strait traffic once restrictions are loosened: governments have opened more cities that can be linked, but these are smaller and difficult to maintain a sustainable service. Even if greater access at primary cities were offered, obtaining slots is a challenge.

Once ETOPS is secured around 2015, this may pave the way for TransAsia's A330s to launch intercontinental services, but before then the carrier is considering how it can grow outside its Taipei hub by using liberal traffic rights in Macau, Japan or Thailand, possibly in conjunction with its growing branch offices. TransAsia would be open to gaining overseas scale by working with local airlines - but airlines around Asia have not shown themselves to be eager to enter into strategic partnerships.

And meanwhile the invasion of low-cost operators is quietly growing, largely under the noses of the incumbent Taiwanese airlines.

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