Air travel is in a slump around the world. But Taiwanese start-up StarLux Airlines (星宇航空) will commence operations on Jan. 23^rd, one day before Chinese New Year’s Eve. 

A record number of seventeen air companies went out of business in 2019. Even industry leaders such as Hong Kong Airlines and Alitalia are on the brink of failure. 

Taiwan is no exception to this worrying global trend. Far Eastern Air Transport went out of business in December. Other airlines are in trouble, too. EVA Air’s net profit for the first three quarters of 2019 was down by 46%. China Airline’s cumulative losses in the first three quarters totaled 350 million Taiwan dollars. In the face of such headwinds, can StarLux find a way to soar?

If we analyze what is ailing the airlines, the main factor is their operating costs are being inflated by a strong dollar and rising fuel prices around the world. Neither China Airline nor EVA Air saw a decrease in their revenue in 2019; but their profits were slashed by half, or they outright lost money. The reason is none other than the increase in their operating costs.

To make matters worse for the air travel industry, rising environmental awareness in Europe is contributing to something called “flight shame”. Teenage climate change activist Greta Thunberg has refused to fly since 2015. The French government has introduced an “eco-tax” for air fares to reduce carbon emissions. It’s becoming harder and harder to run an airline.

StarLux’s response to these worldwide trends is to target the high-end market. Success is balanced on the edge of a knife, but their plan may just work.

StarLux is working with one-star Michelin restaurant “Longtail” to design its inflight menu. It hired a perfume company to create an exclusive fragrance called “Home in the Air” (星宇香). They want your flight experience to feel like a luxury. They were able to generate so much interest and hype, tickets for StarLux’s first flight sold out in eleven minutes. During the initial phase, the airline’s strategy is to focus on short flights to Southeast Asia. Currently, three destinations are available: Macau, Da Nang in Vietnam, and Penang in Malaysia. A new flight to Cebu City in the Philippines will be added in April. By sticking to Southeast Asia and avoiding long routes to Europe and the Americas, StarLux hopes to better control its operating costs.

Founder and Chairman Chang Kuo-wei (張國煒) is staging a comeback in the air travel industry. It’s not a flight of fancy; he has a plan to win.

Have you read?
♦ The Heroine of Taiwan’s Aviation Industry
♦ With Discount Carriers on the Rise, Taiwan’s Aviation Industry Gets a Boost
♦ New York to London in 90 Minutes? These Companies Think It's Possible

Translated by Jack C.
Edited by Sharon Tseng