12-Sep-2012 11:54 AM

Taiwan CAA: Government will not invest in LCC ventures

Taiwan Civil Aeronautics Administration (CAA) issued (11-Sep-2012) an explanation on the Government’s policy on the development of LCCs. In the name of national interest, the CAA welcomes all foreign airlines, including LCCs, to operate to Taiwan but will respect market ‘mechanisms’ if carriers wish to establish an LCC subsidiary. The CAA notes that while the entry of LCCs increases competition for local carriers, they also contribute to the tourism growth of the nation. According to the CAA, LCCs contribute toward Taiwan’s ambitions of establishing itself as an East Asia transit hub and provides consumers with a wide range of choices. In response to calls from TransAsia Airways chairman Vincent Lin for the Government to lead the establishment of a Taiwan-based LCC in conjunction with China Airlines, EVA Air and TransAsia, the CAA stated in protection of public interest, the Government should not intervene in any investment. According to CAA data, LCC has a 2.9% market share in Taiwan in the first eight months of 2012, far below the 24.6% share LCCs have in Asia. The CAA also issued the following comments:

  • Airport rates: The CAA has commissioned a professional body to deliberate on the nation’s airport charges and rates;
  • Infrastructure: The CAA has taken into consideration the needs of LCCs in its airport planning and when the scale of LCC operations is large enough, the CAA will evaluate the possibility of establishing a dedicated LCC terminal. [more – original PR – Chinese]

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