Kaohsiung - low cost airlines

Why aren’t there any such airlines based in southern Taiwan ?

Everything is up at Taoyuan, where I believe landing costs are hightest in Taiwan.

I always thought that one reason for their business model was/is the choose
some off airports to save thoese extra ordinary high fees from the major hub airports,
at least that is how it’s working in Europe (eg infamous Rynair).

Kaohsiung Airport must have a lot off slots left, since all these domestic flights
to Taipei dissapeared.

Anybody have a reason for this ?
I know the majority of people are living in the north, but I am sure from ChiaYi down
south there are also around 3+more million people who potentially don’t like always to
travel up north to catch their flights …

Any thoughts ?

Mainly ignorance of how things are done elsewhere I would say.

Well i dont think they are passing out airline licenses in Taiwan. The existing airlines are not always profitable. China Air has its maintenance hangers in CKS. So does EVA. Far Eastern has its hangers at SungShan airport. TransAsia I believe also at SungShan. Therefore those are their bases.

It would make sense for a new airline to establish a base in Kaohsiung if there was going to be another airline. But Taiwan’s air travel market is saturated (as far as Taiwanese owned airlines are concerned).

The govt would possibly be open to a foreign airline wanting to set up a mini hub in Taiwan though and picked Kaohsiung. But I dont think there are any candidates (outside of mainland chinese airlines who would do it for political reasons).

There are already lots of low cost airlines flying into Taiwan. The question is a good one though, why do they not use regional airports. The main reason is ignorance of the business potential from local govts, plus blocking by domestic airlines AND the relatively unsophisticated local travelers who are slow to pick up on the low cost travel wave. They are confused as they rightly usually associate low coat with low quality and danger. But this adage is incorrect for international airlines.
Taichung has issues with the airforce slowing down development along with the dopey local administration.

Kaoshiung SHOULD have at least one low cost airline…there is a lot of business waiting.

Well in that vein, there are a LOT more international flights from Ktown then there were just ten years ago ! China Air has flights there to HK and elseswhere, JAL has flights to Japan, HK airlines has flights to HK, etc . SO its starting to get more.

It could use more as more people demand the ability to fly out from there. Makes no sense to truck all the way to TPE to catch a flight really. IM surprised EVA / Ci doesnt fly once a week or 3 times a week to the USA from Ktown. Im sure the potential is there.

Even Taichung airport has flights to HK, Japan, Vietnam, China etc. They are all operated by FAT and Transasia though. I believe they are subsidiaries of the big airlines in Taiwan. I have seen talk that either EVA or China airlines are looking at opening a low cost airline, but I think the current situation suits them just fine. Lots of juicy profits on the Chinese direct flights and HK and Bangkok route.

TransAsia and FAT are not related to EVA or Ci. EVA owns UNI Air, and CI owns Mandarin and Formosa Airlines. Ci used to own 20pct of FAT, but not sure they still hold that stock.

TransAsia and FAT have maintenance hangers at SungShan. And limited capital. In a tough market.

Taiwan is not a booming air travel market, its a matured market. Its not like Indonesia with huge potential.

That said, id expect TransAsia and FAT (if anyone) to set up another base at Ktown.

I think international travel is doing well. Besides low cost airlines work by growing the customer base, not just stealing market share.

China Airlines has Mandarin Airlines (they fly a lot of flights out of Taichung) as a low cost airline and EVA has UNi Air as their low cost airline.

They should look into developing those more perhaps.

That’s what I meant Tommy. The thing is I think they are just an after thought, we all know Eva and China airlines have a lock on most routes, the HK route being one of the busiest and most profitable routes in the entire world!

You can get to Korea or the Phillipines now for 4000-5000NTD , Hk flights still average 8000k , crazy.

[quote=“headhonchoII”]That’s what I meant Tommy. The thing is I think they are just an after thought, we all know Eva and China airlines have a lock on most routes, the HK route being one of the busiest and most profitable routes in the entire world!

You can get to Korea or the Phillipines now for 4000-5000NTD , Hk flights still average 8000k , crazy.[/quote]

Yes Mandarin was created by China Airlines when Ci was a flag carrier and not allowed in many countries. Ci had a 20pct share of the former FAT before they went belly up. Not sure if they have any shareholding of the newly resurrected (under new ownership and much much smaller then its former self ) FAT.

EVA had Uni Air mainly to participate in Taiwans then booming domestic business which has basically disappeared with the advent of the HSR.

So they are not really LOW COST airlines set up by Ci and EVA per se.

But I think they could become their low cost subs if there is a business case? And granted there may not be.

Singapore Airlines participates heavily in SCOOT and Tiger Airways (low cost carriers from Singapore).

So it seems there is a business case ? Maybe Ci and EVA need to look into setting them up as “low cost” carriers and base them in Kaohsiung. Or is that too radical for them, or are they too busy as it is currently with what they are doing now. Maybe Taiwan needs a new “low cost” carrier to base itself in Ktown? Got a few spare billion laying around? If so lets you and I do it? :slight_smile: The problem with the airline biz is that in order to make a few million , you have to start with A LOT more.

And yes HK to/from Taiwan is a HUGE moneyspinner. Always has been.

China airlines was making noises about turning their subsidiary into a low cost airline operating out of the new terminal/runway in Taoyuan at some ‘time in the future’. Load of waffle obviously.