10-Sep-2012 12:37 PM

China Airlines will not consider LCC investment with other carriers

China Airlines chairman Chang Chia-Juch stated the carrier conducted an internal research into the possibility of establishing a LCC subsidiary when he took over as chairman. As reported by China Times, Mr Chang said the study concluded that the conditions are not right for a Taiwanese LCC, although if the carrier does establish a LCC in the future, the carrier will not consider JVs with other airlines. Mr Chang added in establishing a LCC, the carrier will consider factors such as market segmentation and division of labour. According to Mr Chang, if China Airlines and EVA Air are to enter the LCC market, they should use their current subsidiaries, Mandarin Airlines and UNI Air, respectively, in order to compliment their respective parent airline’s existing routes. Mr Chang’s comments follows calls from TransAsia Airways chairman Vincent Lin for the Government to assist in the establishment of an independent Taiwanese LCC brand with joint investments from China Airlines, EVA Air and TransAsia, led by China Aviation Development Foundation. Mr Lin stated “the later the entry [into LCC market], the greater the impact”.

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