Andrzej Jeziorski/SINGAPORE
Taiwan's China Airlines (CAL) has fixed a June target date for the merger of its two subsidiaries, Mandarin Airlines and Formosa Airlines.
The move is intended to create a new domestic carrier, allowing CALto concentrate on international services. It has been under examination since mid-1998, following rival EVA Airways' merger of its own domestic offshoots, UNI Airways, Taiwan Airlines and Great China Airlines. These have since been united under the UNI Airways banner.
If the Mandarin/Formosa rationalisation goes ahead, the merged carrier will continue as Mandarin Airlines, with Mandarin's international routes and aircraft being taken over by CAL.
Both CAL and EVA's rationalisation moves have been driven by government calls to restructure the Taiwanese airline industry after the crash of a CAL Airbus A300-600R, with the loss of 202 lives, on 16 February. The accident shook confidence in the airline, and this was exacerbated by the loss of a Formosa Saab 340B involving 13 deaths in March.
CAL owns 100% of Mandarin and 42% of Formosa. A further 42% is held by computer maker ADI, while the remainder is divided among employees and other private investors.
Mandarin was established in 1991 after CAL was banned from operating to certain destinations because its livery included the Taiwanese flag. China considers Taiwan a rogue province and, to maintain relations with Beijing, several countries denied CAL landing rights. Most of these have since allowed CAL landing rights, since it has removed the national flag from its aircraft.
Mandarin's international fleet now comprises one Boeing 747-400, two 747SPs and five Boeing MD-11s, flying to Australia and Canada. Formosa operates a turboprop fleet of three Dornier 228s, seven Saab 340Bs, five Fokker 50s and two Fokker 100s.
Mandarin's fleet will be taken over by CAL, although the 747SPs and MD-11s are likely to be sold, given the company's previously stated intention to rationalise its fleet to four different types of passenger and cargo aircraft :the 747-400, 737-800 and "new" long range and medium range types. The carrier is evaluating the Airbus A330/A340 against the Boeing 777 for its long and medium range requirements.
China Airlines' board has named Sandy Liu, former commercial vice-president of the airline, as acting president from 6 November. He fills the post left vacant by the resignation of Fu Chun Fan and many of the airline's senior executives after the A300-600R crash.
Source: Flight International
