China Airlines targets Europe-Australia Kangaroo Route traffic to counter EVA's N America strategy

Taiwan's China Airlines is consolidating strategic developments from recent years into a strategy to target incremental Europe-Australia Kangaroo Route transfer traffic. This sixth freedom focus was not an explicit end goal as China Airlines moved its Bangkok-Europe services to nonstop, significantly upgraded its product, and took delivery of new 777-300ERs and A350s. The catalyst for the new focus appears to be China Airlines' intent to relaunch service to London and its needing feed to support the thin market.

The Europe-Australia focus gives China Airlines more differentiation from its Taiwanese rival EVA Air, the privately owned airline that has quickly expanded in the North America-Southeast Asia transfer market.

China Airlines rightfully considers EVA's North America focus to be at overcapacity, but Europe-Australia has seldom been a yield saviour. North America may be a safer long term play.

China Airlines is adding a second daily Sydney flight to support connections to European cities other than London, but overall China Airlines has a small proposition of destinations, frequency. Market awareness is also lacking. China Airlines can certainly earn incremental traffic, but China Airlines will need to beware adding too many flights for what should be a filler strategy.