Aviation in Taiwan Part 2: LCC changes at Tigerair Taiwan, V Air and TransAsia.

This is Part 2 of a report on Taiwan's changing aviation scene. Tigerair Taiwan has become the island's largest LCC by far, twice the size of V Air, despite their launching a few months apart. Having expanded in Japan, the low-hanging fruit, Tigerair Taiwan now turns to more competitive markets in Southeast Asia and later to mainland China. Tigerair Taiwan will need to rebrand following expected rebranding among Singapore Airlines group LCCs, Tigerair and Scoot.

The larger challenge is at TransAsia and V Air. Full service TransAsia is moving to a hybrid model, bringing it even closer to its LCC, V Air. The overlap was awkward and now will increase, creating even more redundancy. TransAsia Airways has suffered following two crashes, but even before that its regional full service strategy with widebodies was at risk. There is a challenge of scale as V Air is one-fifth the size of TransAsia, itself very small, while Tigerair Taiwan is over two fifths the size of the longer established TransAsia. In short, TransAsia and V Air need to combine on a single strategy.

There is a small window of opportunity for V Air to take advantage of the anticipated Tigerair Taiwan rebranding. A downturn in tourism from mainland China further clouds the outlook. Although not entirely unexpected given the sensitive relationship with China, the decrease is no less painful.

This CAPA Premium Analysis article is 2,131 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com