Enter the low-cost airline market and China Airlines announced at the end of the year

China Airlines Announces End of Year

As low-cost airlines cause shock in the market, Sun Hongxiang, chairman of China Airlines, said recently that China Airlines will soon become the first Taiwanese airline to compete for the Asian low-cost airline market, and will disclose relevant plans as soon as the end of the year.

In an interview with the Wall Street Journal, Sun said China Airlines will follow most Asian airlines, including Singapore Airlines Ltd. and Japan Airlines Co., into the low-cost airline market in response to fierce competition from emerging low-cost airlines in Asia.

The report pointed out that low-cost airlines account for one-fourth of air transport in the Asia-Pacific region.

Sun said he expects the low-cost aviation market in Northeast Asia to accelerate, mainly due to further liberalization of the aviation industry in Northeast Asia, such as Taiwan's new Open Skies Agreement with Japan.

Sun Hongxiang told Wall Street in an exclusive interview that China Airlines will therefore build its own low-cost airlines to compete with other competitors.

However, mr sun declined to say what investment plans were underway and whether they involved a transformation of china airlines 'existing subsidiary or would be partnered with other investors.

Sun Hongxiang said that he did not expect explosive growth at the beginning, but did not want to be absent from the low-cost aviation market.