StarLux Airlines chairman Kuo-Wei Chang stated that with Taiwan's population of 23 million, there is little demand for a third national airline if solely catering to the domestic market. However, he emphasized that Taiwan's strategic geographic location in the Asia-Pacific region makes it a crucial hub, noting that its potential in the transit market has been significantly undervalued for years.
On September 25, 2024, during the pre-IPO performance presentation of StarLux Airlines, Chang discussed the future outlook for Taiwan's aviation market, highlighting global demand for passenger and cargo transportation through 2025, with the Asia-Pacific region leading in recovery.
Chang emphasized that Taiwan is strategically located in the Asia-Pacific region, with an ideal geographic position. He noted that it's within a five-hour flight from many major business and tourist destinations, giving it strong potential and significant advantages as a transit hub.
StarLux Airlines CEO Glenn Chai added context to Chang's remarks, pointing out that Indonesia, with its population of 270 million, does not have direct flights to North America due to its distant geographic location, which is too far for new-generation aircraft to fly. Similarly, Thailand, with a population of 70 million, also lacks direct flights to North America for the same reason.
Chang argued that Taiwan is ideally positioned as the best transit hub for the Southeast Asian market. He highlighted that in the past, key Asian transit hubs included Seoul in South Korea and Narita Airport in Japan. He also noted that Hong Kong, once a major international trade center with Chek Lap Kok International Airport (Hong Kong International Airport) serving as a critical gateway, has seen its role in global transit noticeably decline in recent years.
Chang observed that Shanghai Pudong International Airport has also been developing its transit market weight, but political tensions between China and the US have weakened its role as a transit hub. As a result, he contended that the current situation has made Taiwan's importance even more pronounced.
Shifting focus, Chang also pointed out the current shortcomings in both the software and hardware infrastructure at Taiwan Taoyuan International Airport. He emphasized that if Taiwan is to establish itself as a transit hub, it's not just the airlines that require improvement—everything from transit customs to ground services requires a complete overhaul. He called for collective efforts across various sectors to make this vision a reality.
Chang candidly remarked that the business opportunities are clear, but the real challenge lies in seizing them. He noted that the government has long called for transforming Taiwan into a leading operations hub in Asia, yet progress has been slow. Chang concluded by stating that with favorable external conditions in place, it's critical to quickly build the necessary internal infrastructure to capitalize on this potential.
