'Hamlet' in the Skies? Taiwan's Newest Airline Takes Flight Amidst Family Drama

Taiwan - Ekhbary News Agency

'Hamlet' in the Skies? Taiwan's Newest Airline Takes Flight Amidst Family Drama

Taiwan's aviation landscape is undergoing a significant shake-up with the debut of STARLUX Airlines, a new carrier poised to challenge the island's entrenched duopoly. Launched in January 2020, STARLUX represents the first significant new entrant in three decades. Even before its inaugural flights took off, the airline, marketed as Taiwan's first luxury boutique carrier, had already generated considerable buzz and anticipation.

The excitement was palpable when, within eleven minutes of opening online ticket sales on December 16th, STARLUX sold out every seat on its first three routes: Taipei-Macau, Taipei-Penang, and Taipei-Danang. However, the fervent public and industry interest extends beyond just the airline's commercial promise. A compelling narrative of family succession and corporate intrigue surrounding STARLUX founder Chang Kuo-wei has captured the public imagination, leading local media to dub him the "Prince Hamlet" of the aviation industry.

This dramatic saga traces its roots back to 2016, following the passing of Chang Yung-fa, the founder of Taiwan's influential Evergreen Group and EVA Airways, at the age of 88. His death triggered an intense power struggle for control of the sprawling family conglomerate. Chang Kuo-wei, then 49, who had been chairman of EVA Airways since 2013, asserted his claim based on his late father's will, which reportedly named him successor to the parent Evergreen company. A respected figure in aviation circles, known for his candid nature and deep industry knowledge, Chang had practical experience within EVA, having served as both an aircraft technician and a pilot.

Despite his qualifications and familial claims, being the youngest son and the only child of Chang Yung-fa's second wife placed Chang Kuo-wei in a precarious position. His ascension ignited a bitter family feud, and he was subsequently ousted as chairman of EVA Airways during a board meeting convened by other family members. In the aftermath of this ousting, a few months later, Chang Kuo-wei announced his intention to launch his own airline – STARLUX Airlines. This move was widely interpreted by local media as a "Hamlet-like" act of defiance and strategic retaliation.

The anticipation for STARLUX's launch was further amplified by ongoing turbulence within Taiwan's established carriers. Both EVA Airways and China Airlines, the dominant players, had been grappling with labor disputes and internal conflicts. China Airlines reached a resolution with its crew following a week-long strike in February 2019, while EVA Airways endured a protracted 17-day strike in July, marking the longest industrial action in Taiwanese aviation history. These operational challenges faced by incumbents created a window of opportunity for the newcomer.

However, according to STARLUX's own communications team, Chang Kuo-wei's motivations are not rooted in revenge. K.W. Nieh, STARLUX's Chief Communication Officer, clarified to CNN Travel, "He doesn’t think that he is ‘Hamlet’. This has nothing to do with revenge." Nieh elaborated that Chang's primary drive is his "passion for aviation" and his desire to "build an ideal airline that reflects his style" after breaking away from the Evergreen Group. He aims to fulfill the vision and expectations of his late father through STARLUX.

While it remains to be seen if STARLUX can ultimately unseat its established rivals, its arrival has undoubtedly injected new energy and competition into Taiwan's aviation sector. The airline is introducing cutting-edge aircraft, including the Airbus A321neo and A350-1000, both making their debut in Taiwan. STARLUX is notably the first Taiwanese airline to operate the A321neo, with an order for ten aircraft scheduled for delivery by the end of 2021. The airline also secured Taiwan's largest single Airbus purchase agreement, ordering 17 A350XWB aircraft in March 2019. Demonstrating his commitment, Chang himself piloted the first STARLUX A321neo delivery flight from Hamburg to Taipei.

The fleet expansion is ambitious, with plans to grow to 27 aircraft by the end of 2024 and 50 by the end of 2030, according to Nieh. The cabin interiors, designed by BMW's Designworks studio, are a testament to the airline's premium positioning, featuring sleek seats, leather headrests, and advanced inflight entertainment systems across all classes. Economy class passengers will enjoy 10.1-inch HD screens, while business class offers fully flat beds and larger 15.6-inch screens. A pioneering feature for Taiwan is the provision of free Wi-Fi with basic texting access for economy passengers on all STARLUX flights.

Local touches are also a significant part of the STARLUX experience. A bespoke cabin scent, blending notes of wood, leather, and florals, has been developed by Taiwanese fragrance house P. Seven. The crew uniforms, inspired by a retro-futuristic aesthetic of the 1940s and 50s, are the creation of local designer Sean Yin. These elements underscore STARLUX's aspiration to be the "Emirates of Asia" by offering a premium, distinctive service.

At a recent press event, Chang emphasized that STARLUX is not aiming for a price war. Instead, ticket prices will be competitive yet positioned at a premium. "We consider flying as an enjoyable part of the journey," Nieh explained. "We offer top-notch and exquisite services. It differentiates STARLUX from other companies in the market. We position ourselves as a boutique airline, targeting the higher-end market." This strategy involves leveraging advanced aircraft and superior service offerings, justifying a slightly higher fare structure.

Aviation expert C.K. Law, senior advisor at the Department of Aviation Policy at the Chinese University of Hong Kong, views STARLUX's premium positioning as a shrewd strategy. "Many new airlines have been tapping into the low-cost sector... That’s definitely the major trend. There should be reasonable demand for the high-end passenger segment of the market," Law commented. He anticipates that despite the premium focus, the new airline will eventually influence overall airfares, benefiting passengers through increased choice and potentially lower prices in the long term, driven by competition for superior service.

Taiwan's aviation market has shown robust growth in passenger numbers and flight activity. Boeing projects demand in Taiwan to outpace the Northeast Asia average by 2% annually over the next two decades. The key question remains whether the market can sustain another major full-service airline. Law cautions that while STARLUX introduces significant competition, its survival, and that of existing carriers, hinges on the pace of market growth and the ability of new demand to absorb the increased capacity. "Otherwise, that could be a cut-throat competition and there could be casualties," he warned.

A critical challenge for STARLUX will be penetrating the long-haul and transit markets, which it intends to explore. Law suggests that while short-haul leisure markets are likely to see high load factors, long-haul routes, already competitive, will be more demanding. "It won’t be easy for new airlines to join a reputable alliance, to start with. Without being a member of an alliance, it won’t be easy at all to get transit passengers," he noted, adding that this could be a long-term objective.

However, STARLUX's strategic potential is not limited to the domestic market. Taipei's advantageous geographical location, enabling flights to major Asian cities within five hours, positions it as a potential aviation hub. "Located in a central position connecting North America, North Asia and Southeast Asia, Taiwan has the best foundation to develop as an aviation hub," stated Nieh. By enhancing its infrastructure and services, Taiwan's aviation industry could strengthen transit services and attract a significant number of international passengers, potentially rivaling established hubs like Hong Kong and Incheon.

Nieh highlighted a recent study by Taiwan's National Audit Office, indicating that only 10% of inbound travelers are transit passengers. This contrasts sharply with hubs like Hong Kong, Incheon, Shanghai, and Bangkok, where transit passengers constitute 30% to 50%, underscoring the vast untapped potential for Taiwan to enhance its role as a regional transit center.

Ekhbary News Agency