Tigerair Taiwan CEO Update

Transcript

Kwan Yue:Firstly, we don't really see that as a competition. I don't think by offering unbundled fares is something new. It's been happening in the US where you still have to pay for your check-in luggages for full-service carriers. So what China Airlines has done is just to offer another product. And I think it is a product that will probably be pretty attractive for some travelers. And as far as between China Airlines and Tiger Air, we still maintain that we are two different products offering to the same destinations, which we have always been. I think Seoul is certainly an attractive destination. Unfortunately, of course, there aren't enough traffic rights for us to. Start operating to Seoul, but I think there are more than enough in the area, in the location that we are at, where traffic rights are available. I don't think we are short of destinations. So certainly Seoul is attractive, but it's not limiting what we are doing. Well, our initial business plan is 12 aircraft in the first 3 years. We are pretty much on track, perhaps maybe still looking for the For the number 12, we are committed to the 11 aircraft at this point in time, so we are pretty much on track with what we have planned to set out to do. Well, up to now, that has been our main focus, although that's going to dilute over the next few years because we are now looking towards the south. In fact, the Taiwan government has come up with a new initiative which is known as the New Southbound Policy, opening up the southern part of Taiwan, especially ASEAN countries, as part of the domestic market. So that is where our next focus is going to be. We are facing some constraints. Maybe Narita is a very good example because now that this conference is being held here, Narita, for example, has got an LCC terminal. Which obviously is a terminal that I look forward to operating from. The constraint really is the ground handlers. There aren't enough ground handlers that has enough resources to support airlines like me who wants to operate in the low-cost terminal, which means that there is some disconnect between the airline, or rather the airport infrastructure, versus what the ground support could offer to the airlines. So I think that is one major constraint that we are currently facing.

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