Considering low-cost carriers in the future? EVA Air chairman: Taiwan market is too small

▲EVA Air. (Photo / Provided by EVA Air)

Reported by Chen Jui-chung / Taipei

The low-cost carrier “V Air” announced it will cease operations on October 1, following its maiden flight in December 2014. TransAsia Airways’ Tigerair Taiwan has also recently faced reduced flight frequency and suspension of new routes. EVA Air Chairman Lin Bao-shui stated that Taiwan’s domestic market is too small—EVA has not considered entering the low-cost carrier market in the past and will not do so in the future.

V Air is a homegrown low-cost airline wholly established by TransAsia Airways, while Tigerair Taiwan was jointly founded by China Airlines and Tigerair Australia. Both commenced operations in the autumn and winter of 2014, yet EVA Air, also a national carrier, has never entered the low-cost airline market.

▲EVA Air Chairman Lin Bao-shui. (Photo / Taken by reporter Chen Jui-chung)

Lin pointed out today that Taiwan’s market scale is too small, applying for new routes is also difficult, and there is no dedicated low-cost carrier terminal to help reduce costs. There must be policy changes for development opportunities. EVA Air also noted that with falling oil prices this year, ticket prices could drop by 7%.