Taipei Taoyuan International Airport

Taiwan's EVA Air confirmed as new Star member, considers converting UNI Air subsidiary to an LCC

Taiwan’s EVA Air formally signed on 29-Mar-2012 with Star Alliance to join the grouping after Star’s Chief Executive Board unanimously accepted the carrier's membership application. Wholly owned regional subsidiary UNI Air, however, will not be joining Star and EVA President KW Chang has instead revealed is was a possibility that UNI may be converted to a low-cost carrier.

As Asia’s network airlines quickly establish their own LCC subsidiaries, the pressure mounts on others to follow suit and EVA is apparently no exception. In a clear sign that the flurry of LCC subsidiary announcements by other airline groups in Asia was influencing EVA management thinking, Mr Chang Kuo-wei said “it is one thing we are thinking of, but it is only a possibility this stage”. While it ponders a possible new short-haul LCC strategy, EVA hopes to leverage its Star Alliance membership to expand on long-haul routes.

Taiwan’s EVA banking on more cross-Straits flights

Taiwan’s EVA Air aims to focus on further expanding its cross-Straits operation as it takes delivery of new narrowbody aircraft. Expansion of EVA’s relatively limited long-haul operation is unlikely as long as there is an opportunity to add capacity in the lucrative cross-Straits market.

EVA chairman, James Jeng states the carrier expects to direct most additional capacity in 2012 to mainland China routes. Speaking to CAPA along the sidelines of last week’s Association of Asia Pacific Airlines (AAPA) meeting in Seoul, Mr Jeng says EVA is not planning to further expand its network in mainland China beyond the 25 destinations it will serve by the end of this year. But he says EVA hopes to increase frequencies to several existing destinations.

Capacity on existing cross-Straits flights will also increase as EVA introduces A321s. Mr Jeng says the carrier has committed to acquiring 14 A321s, with the first three to be delivered from leasing companies in late 2012. The EVA group, which includes subsidiary Uni Airways, plans to use the A321s in its cross-Straits network.

TransAsia and UNI Air lead Taiwan's second tier airlines into new markets

Taiwan's airlines are gearing up for a boom in visitors from Mainland China. Taiwan’s Transportation and Communications Minister Mao Chikuo has urged Taiwanese carriers to purchase more aircraft before the number of Mainland tourists permitted to visit the island increases from 5 million presently to 10 million p/a over the next three to four years. While the demand will no doubt be captured predominantly by the nation's two major carriers, EVA Air and China Airlines, some of the nation's smaller carriers are also targeting rapid expansion in the months and years ahead on cross-Strait and near-international routes.

Jetstar's new North Asia focus leaves room for Qantas Singapore expansion to Europe and India

Jetstar is planning to expand its Singapore-based fleet by 50% over the next six months as the low-cost carrier group looks to North Asia for the next phase of its dramatic expansion. As the largest low-cost airline group in the Asia-Pacific region continues to expand at a rate of about 20% per annum, additional capacity will not be directed west towards South Asia, the Middle East or Europe but primarily to North Asia, where Jetstar sees the most opportunities given North Asia’s very low LCC penetration rate. This strategy could signal growth for the Qantas brand in South Asia and Europe as the group looks at potentially announcing next month the launch of a new Singapore-based full-service carrier.

Chinese airlines report decline in cargo volumes in May-2011

The spectacular rebound in China’s airfreight demand of 2009 and 2010 has slowed notably in 2011. Chinese mainland airlines reported year-on-year declines in cargo volumes in May-2011, marking the second month of year-on-year reductions so far this year. The two reductions in 2011 follow a period of continuous cargo growth that commenced in Jun-2009, as the country’s manufacturing sector recovered at a cracking pace after the global financial downturn.