Taiwan's first budget airline set for maiden flight

Taiwan's first budget airline said on Monday (Sep 1) it was scheduled to launch its maiden flight later this month, tapping into the robust demand for cheap travel in Asia. Tigerair Taiwan - a joint venture by China Airlines, the island's leading air carrier by fleet size, and Singapore's low-cost carrier Tigerair - is slated to start its service on September 26 with a flight to Singapore from Taiwan.

The announcement came after a brand new A320, the company's first aircraft, flew from France to the northern Taoyuan airport early Sunday morning. "The arrival of the plane is a milestone in the company's operation," company spokesman Eric Lee told AFP.

"We'd open up to three other flight routes to the Southeast Asian region after October," he said, adding that the air carrier also plans to begin flights to South Korea and Japan from the first quarter of 2015. Tigerair Taiwan, 90 percent controlled by China Airlines with the remainder held by Tigerair, plans to introduce a fleet of 12 A-320s in three years.

Taiwan's TransAsia Airways has also announced the formation of a low-cost carrier called "V Air", expecting the subsidiary to become operational in the final quarter of this year.

Demand for discount flights has been rising in Asia. Twelve foreign budget airlines, including Malaysia-based AirAsia and Japan's Peach Aviation, offer services to and from Taiwan.

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Taiwan's airline to boost flights to China

Taiwan's largest carrier China Airlines said Wednesday it would increase the number of flights to China by around 18 per cent before mid-July to meet rising demand.

The company said in a statement it would fly to four new destinations on the mainland -- making a total of 32 -- and add flights to three cities to increase its weekly flights to China to 152 from 129.

The airline said it hopes the additional flights would enable tourists from both sides to arrange their trips more conveniently and boost the tourism market.

China has replaced Japan as the biggest source of visitors to Taiwan after relations improved markedly between the former bitter rivals in recent years.

Last year a record 2.85 million Chinese nationals visited Taiwan, up ten per cent from 2012.

The number of tourists visiting Taiwan from the mainland has shot up ever since Taipei lifted a ban on Chinese group tourists in 2008 and allowed solo tourists in mid-2011.

However, Beijing still considers Taiwan part of its territory awaiting reunification, by force if necessary, even though the two sides have been governed separately since the end of a civil war in 1949.

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Tigerair, Scoot in JVs to set up Taiwan, Thai budget airlines

Taiwan's China Airlines and Singapore's Tiger Airways plan to set up a Taiwan-based budget carrier.

This will allow Taiwan's biggest airline to tap into Asia's low-cost aviation market.

Tigerair, in which Singapore Airlines owns about a third stake, will also extend its presence into the new and largely untapped markets of Taiwan, Japan, and Korea.

In a media release on Monday, Tiger said the new carrier will operate under the Tigerair brand and be independently managed. Tigerair's website will be the main sales and distribution platform.

Tigerair will initially hold 10 per cent of the start-up, while China Airlines will hold a 90 per cent stake.

The start-up will have a registered capital of T$2 billion (about S$85 million).

The partner carriers will be submitting applications for regulatory approvals.

Tiger Airways also announced an agreement with Indian budget carrier SpiceJet, allowing both to connect passengers on each other's flights.

Tigerair currently flies to Hyderabad in India and the agreement with SpiceJet will allow the two to connect 14 Indian cities from there.

Tiger Airways and Scoot -- the long-haul, low-cost unit of Singapore Airlines -- also agreed to work together on joint operations, and sales and marketing on parallel routes.

In a separate announcement, Scoot said the company plans to establish a new Bangkok-based low-cost carrier with Thailand's Nok Airlines.

The new airline will be named NokScoot and will be based at Don Mueang International Airport. It will operate wide-body aircraft on medium and long-haul international routes.

Nok will have up to a 51 per cent stake in the new carrier and Scoot will hold a 49 per cent stake.

The initial investment will be THB2 billion (about S$80 million).

The establishment of the new airline is subject to regulatory approvals.

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Taiwan's EVA Air joins world's biggest air alliance

Taiwan's EVA Airways on Tuesday joined Star Alliance, the world's biggest airline grouping, in a move that could give it an edge over regional rivals like China Airlines.

"EVA Air has successfully completed all joining requirements and I can confirm that our chief executive board has now unanimously accepted EVA Air into our alliance," Star Alliance CEO Mark Schwab announced at a ceremony in the north of the island.

The move could see an increase in the carrier's occupancy rate by up to three percentage points, according to chairman Chang Kuo-wei, as passengers benefit from greater integration with leading airlines.

It took EVA Air a year and half to meet the alliance requirements, foremost the adjustment of its computer systems that will enable passengers to use air miles earned through other alliance members.

In March last year, an EVA executive said joining the grouping would give the carrier an advantage over China Airlines which belongs to the smaller Sky Team.

EVA, Taiwan's second largest airline, becomes the 28th member of the Star Alliance, which also includes carriers such as Lufthansa, Thai Airways International, United Airlines and Air Canada.

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Important strategy to widen its coverage and fight against the stronger China Airlines.