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1. 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 predominately 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.
Taiwan’s airlines urged to expand their passenger fleets
Mr Mao stated Taiwan’s passenger fleet is not adequate to meet current market demand and has urged local carriers to show more interest in expanding their capacity.
According to Taiwan’s Civil Aeronautics Administration, there were 196 registered aircraft in Taiwan at the end of Jun-2011. China Airlines had the largest fleet with 67 aircraft, followed by EVA Air (50), UNI Air (19), TransAsia Airways (16), Far Eastern Air Transport (10), Mandarin Airlines (eight) and Daily Air (seven).
China Airlines (CAL) and EVA Air are responding. CAL Chairman Zhang Jiazhu in Jun-2011 stated the carrier would expand its fleet from 68 to more than 100 aircraft in the next five to 10 years. EVA Air President Chang Kua-wei stated the carrier would acquire 20 aircraft to meet robust demand from China. See related article: China Airlines and EVA Air still optimistic about improved profitability despite weaker first half
According to Ascend, Taiwanese airlines have 44 aircraft on firm orders, predominantly widebodies.
Taiwan fleet breakdown for on-order aircraft: at 12-Sep-2011
Source: CAPA - Centre for Aviation and Ascend Worldwide
TransAsia and UNI Air spreading their wings
The nation’s smaller airlines are also expanding, led by TransAsia, which is undergoing an aggressive expansion plan fuelled by cross-Strait demand and an international network drive.
Meanwhile, EVA Air subsidiary UNI Air this month announced plans to acquire 10 ATR 72-600s to support its regional expansion. UNI is currently the fourth largest carrier operating to/from and within Taiwan, according to CAPA's Airline Ranking Tool, while TransAsia is fifth and Mandarin Airlines is sixth. Daily Air and Far Eastern Air (FAT) are smaller Taiwanese carriers operating in the market.
Top 20 airlines serving Taiwan by capacity (seats and ASKs): Week ended 18-Sep-2011
Rank
Airline
Total Seats
Total ASKs
1
China Airlines
240,322
640,470,976
2
EVA Air
140,252
457,242,054
3
Cathay Pacific Airways
88,413
91,865,766
4
Uni Airways
82,368
25,542,120
5
TransAsia Airways
70,886
40,084,192
6
Mandarin Airlines
61,752
33,701,328
7
Dragonair
32,243
23,169,551
8
Japan Airlines
23,618
48,107,332
9
China Eastern Airlines
20,158
16,626,692
10
Air China Limited
15,372
18,775,978
11
Thai Airways International
12,810
27,703,760
12
China Southern Airlines
12,030
12,915,230
13
Vietnam Airlines
11,272
21,315,808
14
All Nippon Airways
10,668
22,616,160
15
Singapore Airlines
10,260
33,334,740
16
Xiamen Airlines
10,172
3,658,650
17
Air Macau
9138
7,640,778
18
Malaysia Airlines
8144
35,436,086
19
Jetstar Asia
6444
17,009,654
20
Delta Air Lines
5642
12,186,720
Source: CAPA – Centre for Aviation and Innovata – Airline Ranking Tool
TransAsia expects to introduce a new investor ahead of listing in Nov-2011
TransAsia Airways Chairman Vincent Lin stated last month the company expects to introduce an unnamed strategic investor before its primary listing on the Taiwan Stock Exchange Corp, which is expected in Nov-2011. “The investor will be a company with business experience of international airlines and which will therefore be able to help boost TransAsia technically and operationally,” Mr Lim said.
The carrier plans to raise around TWD1.2 billion (USD41 million) in private equity capital through the sale of 100 million shares, Mr Lin said. Upon its listing, the carrier plans to issue 22.2 million shares, at a price of TWD18 (USD0.61) per share, to raise TWD400 million (USD14 million). The capital will be used to fund its fleet expansion and general revenues. It will become the third carrier in Taiwan to be listed, after EVA Air and China Airlines.
TransAsia has been listed as an emerging stock on the GreTai Securities Market’s emerging stock bourse since Nov-2010. The airline is now able to list on the main bourse as it has met the requirement of two years of consecutive profits. The carrier reported a net profit of TWD13 million (USD440,000) in 2009 and TWD918 million (USD31 million) in 2010.
Mr Lin stated the carrier expects earnings in the airline sector, including at TransAsia, to grow in the second half of the year, compared with the first half, as oil prices decline and amid strong seasonal demand.
The carrier reported a operating profit of USD12.2 million in the six months ended 30-Jun-2011, a 7.2% year-on-year increase according to reports in the Chinese media. Profit before tax increased by 7.2% to USD14.1 million and profit after tax declined by 0.9% to USD12.0 million. Operating revenue increased 5% year-on-year to USD140.2 million. TransAsia Airways stated revenue on cross-Strait and international services accounted for 70% of its total revenue while domestic services accounted for 25% of its revenue.
TransAsia subsequently reported a 1.6% year-on-year increase in sales revenue to TWD851 million (USD29 million) for Aug-2011. For the first eight months of 2011, the carrier reported a 4.2% increase in sales revenue to TWD5784 million (USD198 million). The carrier expects its revenue to continue to grow in the 3Q2011 with the launch of more international charter services.
In terms of traffic, TransAsia reported a 3.1% year-on-year increase in passenger numbers to 279,792 in Jul-2011, driven by a 5.8% increase in domestic passengers (156,416). International passenger numbers weakened slightly (-0.1% to 123,376) in the month. Passenger load factors, meanwhile, declined 3.5 ppts to 81.3%. Load factors on domestic routes stood at 82.0% (+1.8 ppts) with an average load factor of 81.2% on international services (-5.0 ppts).
TransAsia to operate to all major cities in Asia within five years
Mr Lin, as quoted by the China Times in 01-Jul-2011, stated the carrier hopes to operate to all major cities in the Asia Pacific region including Seoul, Bangkok, Jakarta and Tokyo within the next five years. The carrier also hopes to operate to cities within nine hours reach including those in Australia, New Zealand and the Middle East. TransAsia is scheduled to receive two 313-seat A330 aircraft between 2012 and 2013, which it hopes to use in operations to Sydney, Guam and Eastern Europe.
The carrier’s ability to grow has been enabled by government permission to serve international destinations including Bangkok, Colombo and Singapore. In the past, only China Airlines and EVA Air were permitted to serve international capital cities. Of Taiwan's smaller airlines, TransAsia now has the largest international presence.
Taiwan international capacity (seats per week) by carrier: 12-Sep-2011 to 18-Sep-2011
Source: CAPA - Centre for Aviation and Innovata
As part of this expansion, TransAsia Airways launched daily Taipei-Singapore on 30-Jun-2011 with A320 aircraft. With the new service, six carriers now operate a total of 60 weekly services linking Singapore to Taipei. The others are Sinagpore Airlines, China Airlines, EVA Air, Jetstar Asia and Tiger Airways. An estimated 702,000 O&D passengers travelled on the route in 2010, a 12% year-on-year increase. In the first five months of 2011, the route grew by 16.5% to more than 385,000 passengers.
Taipei Taoyuan International Airport to Singapore Changi Airport capacity (seats) share (one way): 04-Jul-2011 to 04-Mar-2012
Source: CAPA - Centre for Aviation and Innovata
Taipei Taoyuang-Singapore Changi is the fourth largest Taiwanese route, based on currently capacity (seats) data, according to Innovata.
Top 10 Taiwan routes by seats: 12-Sep-2011 to 18-Sep-2011
Rank
Origin Airport
Destination Airport
Weekly seats
1
Hong Kong International Airport
Taipei Taoyuan International Airport
145,232
2
Taipei Taoyuan International Airport
Tokyo Narita Airport
40,504
3
Hong Kong International Airport
Kaohsiung International Airport
38,127
4
Singapore Changi Airport
Taipei Taoyuan International Airport
33,478
5
Bangkok Suvarnabhumi International
Taipei Taoyuan International Airport
30,532
6
Taipei Songshan Airport
Makung Airport
29,736
7
Taipei Songshan Airport
Tokyo Haneda Airport
29,624
8
Taipei Songshan Airport
Kinmen Shang-Yi Airport
28,448
9
Taipei Taoyuan International Airport
Macau Airport
28,332
10
Taipei Taoyuan International Airport
Seoul Incheon International Airport
27,711
Source: CAPA - Centre for Aviation
TransAsia, meanwhile, stated it is no longer considering establishing joint-venture airlines in South Korea and China, as was the case a few years ago. The carrier was considering the services in response to declining domestic traffic due to the introduction of Taiwan’s high-speed rail, but has gained a reprieve from declining traffic due to the success of the profitable cross-Strait services.
TransAsia busy expanding cross-Strait services
TransAsia is busy expanding its services to mainland China. The carrier, in Jun-2011, was allocated 10 of the additional 94 cross-Strait services, including one additional Shanghai service. With the increase, TranAsia’s allocation of cross-Strait rights increased from 34 to 44 times weekly from mid Oct-2011. See related article: Cross-Strait services upped; Taiwan allows individual mainland tourists for first time since 1950s
After progressively adding cross-Strait services to its network, TransAsia is the sixth largest operator on services between Taiwan and China behind China Airlines, EVA Air, China Eastern Airlines, Mandarin Airlines and Air China.
China to Taiwan (seats per week, one way): 04-Jul-2011 to 04-Mar-2012
Source: CAPA - Centre for Aviation and Innovata
TransAsia, like the other cross-Strait operations, has said it expects traffic to improve in late Sep-2011 ahead of the Oct-2011 national holiday Golden Week. Taiwan Civil Aeronautics Administration Director Yin Chengpeng earlier this month stated Taiwanese carriers have requested the addition of 86 flights during the Chinese New Year holiday period between 09-Jan-2012 and 05-Feb-2012, including 37 flights by China Airlines and 25 flights by EVA Air. Mr Yin stated he will discuss the proposals with his mainland counterparts next month. UNI Airways is also seeking six additional cross-Strait flights, TransAsia Airways is seeking six while Far Eastern Air Transport is seeking 12 additional flights.
TransAsia Airways also plans to launch five new routes between Taiwan and China from 01-Nov-2011. The new routes will be focussed on service from Kaohsiung in southern Taiwan and Hualien in east Taiwan. Details include:
Taipei Taoyuan–Xuzhou: From 01-Nov-2011;
Kaohsiung–Hefei: From 02-Nov-2011;
Hualien–Hangzhou: From 03-Nov-2011;
Kaohsiung–Nanning: From 05-Nov-2011;
Hualien–Wuhan: From 07-Nov-2011.
2. Aviation Body Slams EU's 'Massive' Carbon Tax
The International Air Cargo Association (TIACA) is urging the European Union to suspend implementation of its controversial Emissions Trading Scheme (ETS) for aviation and to instead pursue a global agreement of aviation carbon emissions through the International Civil Aviation Organization (ICAO).
In a letter to EU Climate Action Commissioner, Connie Hedegaard, TIACA’s Industry Affairs Committee states four main concerns over the upcoming legislation, which from January 1, 2012, will require any airline landing or taking off inside the EU to take part in the regional bloc's emissions trading scheme.
Under ETS, airlines flying to Europe will be required to purchase permits to allow them to emit additional tons of carbon dioxide above a predetermined cap. According to the proposals, sanctions for non-compliance will include fines and flight suspensions.
Warning that the ETS will impose "massive new taxes on aviation", Hedegaard states that:
"By directly regulating conduct outside of EU airspace, the EU ETS encroaches upon the sovereign authority of each State over its own airspace. The Chicago Convention also prohibits any levies on international flights except on a cost basis 'related to the provision of facilities and services for civil aviation'.”
“According to the International Air Transport Association, the cost to airlines of purchasing the necessary carbon allowances will rise from USD1.3bn in 2012 to USD3.5bn in 2020. There is no requirement that EU member states must use these revenues to reduce carbon emissions, either from aviation or any other sector – nor that they dedicate the money to any environmental effort at all.”
“Ironically, the EU ETS will cripple the industry’s ability to continue investing on its own in greener technologies. In recent years, the industry has made impressive progress in reducing emissions, largely through utilization of more efficient aircraft and operating procedures. Furthermore, the industry has actively supported development of sustainable alternative aviation fuels and implementation of next-generation, more efficient air traffic management systems. The cost of EU ETS emissions allowances will divert crucial monies away from investment in such initiatives.”
“In addition, the EU ETS may lead to some unintended consequences such as encouraging carriers to fly less direct routing that could increase aviation carbon emissions. For example, a direct flight from Hong Kong to Amsterdam has 5% lower emissions than the same flight with a stopover in Moscow. However, the stopover would sharply reduce the airline’s emissions charges – thereby benefiting the airline’s bottom line, but not the environment.”
“Aviation is intrinsically an international industry. It is the transportation mode that ties together the globe most expeditiously, and many airlines and aircraft operate across borders. The EU has seemingly ignored this reality in taking a regional approach [on] the issue.”
At an aviation seminar held on August 1, attended by industry leaders, the Vice President of Environmental Affairs at the Air Transport Association of America, Nancy Young, noted that the scheme is ludicrous as analysis has showed that on a flight, for example, from San Francisco to London only 9% of emissions are emitted in EU airspace; the majority instead is emitted in US and Canadian airspace, but would face the same amount of taxation as an internal EU flight.
Furthermore, the issue of double taxation has been raised by airlines. Japan, Australia and New Zealand have all announced they are considering their own cap-and-trade emissions schemes, and China said in July that it planned to commence regional pilot schemes, with the aim of establishing a national cap-and-trade regime by 2015.
The EU legislation does provide that an airline will be tax exempt for the portion of the trip that a similar tax is imposed domestically, but its implementation may be problematic, and if another country, or group of countries, were to impose an identical levy to that of the ETS significant disputes and double taxation could indeed arise.
US and China have both placed significant pressure on European ministers. The US considers that by 2020, if implemented in its current form, it could cost the US industry USD3bn. Chinese estimates are more conservative in the short-term but as the domestic industry grows, losses as a result of the tax are expected to surpass those in the US.
United States airlines have begun legal proceedings, arguing that the system infringes, for one, the Chicago Convention, which grants individual countries the right to complete and exclusive sovereignty on taxation issues within their territory. The EU's ETS is thought to also infringe bilateral open skies agreements between the EU and other nations. US authorities are reportedly even considering outlawing airlines from complying with the ETS.
.
3. Tiger Airways Names Australia Chief
SINGAPORE—Tiger Airways Holdings Ltd. said Monday it has appointed a former Virgin Blue executive to run its Australian unit, as management changes continue at the low-cost airline after safety concerns prompted a nearly six-week grounding of the Australian operations.
Andrew David, a former Virgin Blue chief operating officer and former Air New Zealand executive, will take over as chief executive of Tiger Airways Australia Pty. Ltd. ...
Aviation NEWS By
Neha Jain
Aviation NEWS Reporter
1. 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 predominately 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.
Taiwan’s airlines urged to expand their passenger fleets
Mr Mao stated Taiwan’s passenger fleet is not adequate to meet current market demand and has urged local carriers to show more interest in expanding their capacity.
According to Taiwan’s Civil Aeronautics Administration, there were 196 registered aircraft in Taiwan at the end of Jun-2011. China Airlines had the largest fleet with 67 aircraft, followed by EVA Air (50), UNI Air (19), TransAsia Airways (16), Far Eastern Air Transport (10), Mandarin Airlines (eight) and Daily Air (seven).
China Airlines (CAL) and EVA Air are responding. CAL Chairman Zhang Jiazhu in Jun-2011 stated the carrier would expand its fleet from 68 to more than 100 aircraft in the next five to 10 years. EVA Air President Chang Kua-wei stated the carrier would acquire 20 aircraft to meet robust demand from China. See related article: China Airlines and EVA Air still optimistic about improved profitability despite weaker first half
According to Ascend, Taiwanese airlines have 44 aircraft on firm orders, predominantly widebodies.
Taiwan fleet breakdown for on-order aircraft: at 12-Sep-2011
Source: CAPA - Centre for Aviation and Ascend Worldwide
TransAsia and UNI Air spreading their wings
The nation’s smaller airlines are also expanding, led by TransAsia, which is undergoing an aggressive expansion plan fuelled by cross-Strait demand and an international network drive.
Meanwhile, EVA Air subsidiary UNI Air this month announced plans to acquire 10 ATR 72-600s to support its regional expansion. UNI is currently the fourth largest carrier operating to/from and within Taiwan, according to CAPA's Airline Ranking Tool, while TransAsia is fifth and Mandarin Airlines is sixth. Daily Air and Far Eastern Air (FAT) are smaller Taiwanese carriers operating in the market.
Top 20 airlines serving Taiwan by capacity (seats and ASKs): Week ended 18-Sep-2011
Rank
Airline
Total Seats
Total ASKs
1
China Airlines
240,322
640,470,976
2
EVA Air
140,252
457,242,054
3
Cathay Pacific Airways
88,413
91,865,766
4
Uni Airways
82,368
25,542,120
5
TransAsia Airways
70,886
40,084,192
6
Mandarin Airlines
61,752
33,701,328
7
Dragonair
32,243
23,169,551
8
Japan Airlines
23,618
48,107,332
9
China Eastern Airlines
20,158
16,626,692
10
Air China Limited
15,372
18,775,978
11
Thai Airways International
12,810
27,703,760
12
China Southern Airlines
12,030
12,915,230
13
Vietnam Airlines
11,272
21,315,808
14
All Nippon Airways
10,668
22,616,160
15
Singapore Airlines
10,260
33,334,740
16
Xiamen Airlines
10,172
3,658,650
17
Air Macau
9138
7,640,778
18
Malaysia Airlines
8144
35,436,086
19
Jetstar Asia
6444
17,009,654
20
Delta Air Lines
5642
12,186,720
Source: CAPA – Centre for Aviation and Innovata – Airline Ranking Tool
TransAsia expects to introduce a new investor ahead of listing in Nov-2011
TransAsia Airways Chairman Vincent Lin stated last month the company expects to introduce an unnamed strategic investor before its primary listing on the Taiwan Stock Exchange Corp, which is expected in Nov-2011. “The investor will be a company with business experience of international airlines and which will therefore be able to help boost TransAsia technically and operationally,” Mr Lim said.
The carrier plans to raise around TWD1.2 billion (USD41 million) in private equity capital through the sale of 100 million shares, Mr Lin said. Upon its listing, the carrier plans to issue 22.2 million shares, at a price of TWD18 (USD0.61) per share, to raise TWD400 million (USD14 million). The capital will be used to fund its fleet expansion and general revenues. It will become the third carrier in Taiwan to be listed, after EVA Air and China Airlines.
TransAsia has been listed as an emerging stock on the GreTai Securities Market’s emerging stock bourse since Nov-2010. The airline is now able to list on the main bourse as it has met the requirement of two years of consecutive profits. The carrier reported a net profit of TWD13 million (USD440,000) in 2009 and TWD918 million (USD31 million) in 2010.
Mr Lin stated the carrier expects earnings in the airline sector, including at TransAsia, to grow in the second half of the year, compared with the first half, as oil prices decline and amid strong seasonal demand.
The carrier reported a operating profit of USD12.2 million in the six months ended 30-Jun-2011, a 7.2% year-on-year increase according to reports in the Chinese media. Profit before tax increased by 7.2% to USD14.1 million and profit after tax declined by 0.9% to USD12.0 million. Operating revenue increased 5% year-on-year to USD140.2 million. TransAsia Airways stated revenue on cross-Strait and international services accounted for 70% of its total revenue while domestic services accounted for 25% of its revenue.
TransAsia subsequently reported a 1.6% year-on-year increase in sales revenue to TWD851 million (USD29 million) for Aug-2011. For the first eight months of 2011, the carrier reported a 4.2% increase in sales revenue to TWD5784 million (USD198 million). The carrier expects its revenue to continue to grow in the 3Q2011 with the launch of more international charter services.
In terms of traffic, TransAsia reported a 3.1% year-on-year increase in passenger numbers to 279,792 in Jul-2011, driven by a 5.8% increase in domestic passengers (156,416). International passenger numbers weakened slightly (-0.1% to 123,376) in the month. Passenger load factors, meanwhile, declined 3.5 ppts to 81.3%. Load factors on domestic routes stood at 82.0% (+1.8 ppts) with an average load factor of 81.2% on international services (-5.0 ppts).
TransAsia to operate to all major cities in Asia within five years
Mr Lin, as quoted by the China Times in 01-Jul-2011, stated the carrier hopes to operate to all major cities in the Asia Pacific region including Seoul, Bangkok, Jakarta and Tokyo within the next five years. The carrier also hopes to operate to cities within nine hours reach including those in Australia, New Zealand and the Middle East. TransAsia is scheduled to receive two 313-seat A330 aircraft between 2012 and 2013, which it hopes to use in operations to Sydney, Guam and Eastern Europe.
The carrier’s ability to grow has been enabled by government permission to serve international destinations including Bangkok, Colombo and Singapore. In the past, only China Airlines and EVA Air were permitted to serve international capital cities. Of Taiwan's smaller airlines, TransAsia now has the largest international presence.
Taiwan international capacity (seats per week) by carrier: 12-Sep-2011 to 18-Sep-2011
Source: CAPA - Centre for Aviation and Innovata
As part of this expansion, TransAsia Airways launched daily Taipei-Singapore on 30-Jun-2011 with A320 aircraft. With the new service, six carriers now operate a total of 60 weekly services linking Singapore to Taipei. The others are Sinagpore Airlines, China Airlines, EVA Air, Jetstar Asia and Tiger Airways. An estimated 702,000 O&D passengers travelled on the route in 2010, a 12% year-on-year increase. In the first five months of 2011, the route grew by 16.5% to more than 385,000 passengers.
Taipei Taoyuan International Airport to Singapore Changi Airport capacity (seats) share (one way): 04-Jul-2011 to 04-Mar-2012
Source: CAPA - Centre for Aviation and Innovata
Taipei Taoyuang-Singapore Changi is the fourth largest Taiwanese route, based on currently capacity (seats) data, according to Innovata.
Top 10 Taiwan routes by seats: 12-Sep-2011 to 18-Sep-2011
Rank
Origin Airport
Destination Airport
Weekly seats
1
Hong Kong International Airport
Taipei Taoyuan International Airport
145,232
2
Taipei Taoyuan International Airport
Tokyo Narita Airport
40,504
3
Hong Kong International Airport
Kaohsiung International Airport
38,127
4
Singapore Changi Airport
Taipei Taoyuan International Airport
33,478
5
Bangkok Suvarnabhumi International
Taipei Taoyuan International Airport
30,532
6
Taipei Songshan Airport
Makung Airport
29,736
7
Taipei Songshan Airport
Tokyo Haneda Airport
29,624
8
Taipei Songshan Airport
Kinmen Shang-Yi Airport
28,448
9
Taipei Taoyuan International Airport
Macau Airport
28,332
10
Taipei Taoyuan International Airport
Seoul Incheon International Airport
27,711
Source: CAPA - Centre for Aviation
TransAsia, meanwhile, stated it is no longer considering establishing joint-venture airlines in South Korea and China, as was the case a few years ago. The carrier was considering the services in response to declining domestic traffic due to the introduction of Taiwan’s high-speed rail, but has gained a reprieve from declining traffic due to the success of the profitable cross-Strait services.
TransAsia busy expanding cross-Strait services
TransAsia is busy expanding its services to mainland China. The carrier, in Jun-2011, was allocated 10 of the additional 94 cross-Strait services, including one additional Shanghai service. With the increase, TranAsia’s allocation of cross-Strait rights increased from 34 to 44 times weekly from mid Oct-2011. See related article: Cross-Strait services upped; Taiwan allows individual mainland tourists for first time since 1950s
After progressively adding cross-Strait services to its network, TransAsia is the sixth largest operator on services between Taiwan and China behind China Airlines, EVA Air, China Eastern Airlines, Mandarin Airlines and Air China.
China to Taiwan (seats per week, one way): 04-Jul-2011 to 04-Mar-2012
Source: CAPA - Centre for Aviation and Innovata
TransAsia, like the other cross-Strait operations, has said it expects traffic to improve in late Sep-2011 ahead of the Oct-2011 national holiday Golden Week. Taiwan Civil Aeronautics Administration Director Yin Chengpeng earlier this month stated Taiwanese carriers have requested the addition of 86 flights during the Chinese New Year holiday period between 09-Jan-2012 and 05-Feb-2012, including 37 flights by China Airlines and 25 flights by EVA Air. Mr Yin stated he will discuss the proposals with his mainland counterparts next month. UNI Airways is also seeking six additional cross-Strait flights, TransAsia Airways is seeking six while Far Eastern Air Transport is seeking 12 additional flights.
TransAsia Airways also plans to launch five new routes between Taiwan and China from 01-Nov-2011. The new routes will be focussed on service from Kaohsiung in southern Taiwan and Hualien in east Taiwan. Details include:
Taipei Taoyuan–Xuzhou: From 01-Nov-2011;
Kaohsiung–Hefei: From 02-Nov-2011;
Hualien–Hangzhou: From 03-Nov-2011;
Kaohsiung–Nanning: From 05-Nov-2011;
Hualien–Wuhan: From 07-Nov-2011.
2. Aviation Body Slams EU's 'Massive' Carbon Tax
The International Air Cargo Association (TIACA) is urging the European Union to suspend implementation of its controversial Emissions Trading Scheme (ETS) for aviation and to instead pursue a global agreement of aviation carbon emissions through the International Civil Aviation Organization (ICAO).
In a letter to EU Climate Action Commissioner, Connie Hedegaard, TIACA’s Industry Affairs Committee states four main concerns over the upcoming legislation, which from January 1, 2012, will require any airline landing or taking off inside the EU to take part in the regional bloc's emissions trading scheme.
Under ETS, airlines flying to Europe will be required to purchase permits to allow them to emit additional tons of carbon dioxide above a predetermined cap. According to the proposals, sanctions for non-compliance will include fines and flight suspensions.
Warning that the ETS will impose "massive new taxes on aviation", Hedegaard states that:
"By directly regulating conduct outside of EU airspace, the EU ETS encroaches upon the sovereign authority of each State over its own airspace. The Chicago Convention also prohibits any levies on international flights except on a cost basis 'related to the provision of facilities and services for civil aviation'.”
“According to the International Air Transport Association, the cost to airlines of purchasing the necessary carbon allowances will rise from USD1.3bn in 2012 to USD3.5bn in 2020. There is no requirement that EU member states must use these revenues to reduce carbon emissions, either from aviation or any other sector – nor that they dedicate the money to any environmental effort at all.”
“Ironically, the EU ETS will cripple the industry’s ability to continue investing on its own in greener technologies. In recent years, the industry has made impressive progress in reducing emissions, largely through utilization of more efficient aircraft and operating procedures. Furthermore, the industry has actively supported development of sustainable alternative aviation fuels and implementation of next-generation, more efficient air traffic management systems. The cost of EU ETS emissions allowances will divert crucial monies away from investment in such initiatives.”
“In addition, the EU ETS may lead to some unintended consequences such as encouraging carriers to fly less direct routing that could increase aviation carbon emissions. For example, a direct flight from Hong Kong to Amsterdam has 5% lower emissions than the same flight with a stopover in Moscow. However, the stopover would sharply reduce the airline’s emissions charges – thereby benefiting the airline’s bottom line, but not the environment.”
“Aviation is intrinsically an international industry. It is the transportation mode that ties together the globe most expeditiously, and many airlines and aircraft operate across borders. The EU has seemingly ignored this reality in taking a regional approach [on] the issue.”
At an aviation seminar held on August 1, attended by industry leaders, the Vice President of Environmental Affairs at the Air Transport Association of America, Nancy Young, noted that the scheme is ludicrous as analysis has showed that on a flight, for example, from San Francisco to London only 9% of emissions are emitted in EU airspace; the majority instead is emitted in US and Canadian airspace, but would face the same amount of taxation as an internal EU flight.
Furthermore, the issue of double taxation has been raised by airlines. Japan, Australia and New Zealand have all announced they are considering their own cap-and-trade emissions schemes, and China said in July that it planned to commence regional pilot schemes, with the aim of establishing a national cap-and-trade regime by 2015.
The EU legislation does provide that an airline will be tax exempt for the portion of the trip that a similar tax is imposed domestically, but its implementation may be problematic, and if another country, or group of countries, were to impose an identical levy to that of the ETS significant disputes and double taxation could indeed arise.
US and China have both placed significant pressure on European ministers. The US considers that by 2020, if implemented in its current form, it could cost the US industry USD3bn. Chinese estimates are more conservative in the short-term but as the domestic industry grows, losses as a result of the tax are expected to surpass those in the US.
United States airlines have begun legal proceedings, arguing that the system infringes, for one, the Chicago Convention, which grants individual countries the right to complete and exclusive sovereignty on taxation issues within their territory. The EU's ETS is thought to also infringe bilateral open skies agreements between the EU and other nations. US authorities are reportedly even considering outlawing airlines from complying with the ETS.
.
3. Tiger Airways Names Australia Chief
SINGAPORE—Tiger Airways Holdings Ltd. said Monday it has appointed a former Virgin Blue executive to run its Australian unit, as management changes continue at the low-cost airline after safety concerns prompted a nearly six-week grounding of the Australian operations.
Andrew David, a former Virgin Blue chief operating officer and former Air New Zealand executive, will take over as chief executive of Tiger Airways Australia Pty. Ltd. ...
NEWZEALAND AVIATION NEWS
Aviation NEWS By
Neha Jain
Aviation NEWS Reporter
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www.aerosoftorg.in
www.aerosoftorg.in
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