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Eva Air Announces Significant Expansion and Changes for 2019

Eva Air Announces Significant Expansion and Changes for 2019

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Old Mar 12, 19, 8:58 pm
  #46  
 
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Originally Posted by hayzel7773 View Post
Cost differences mean yields mean different things to different airlines. What may be profitable for BR does not mean it is for the US3, considering their high cost structure.
True, but why not go after higher yield NA markets compared to what has been reported as low-yield BKK. Low cost structure means even more profit.

UA reported 14.6c stage-adjusted yields for NYC-TPE, higher than HKG and ICN (on 1 stop flight options, so presumably IAD/BOS would be fairly similar). Non-stop service should only be higher.
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Old Mar 13, 19, 4:21 am
  #47  
 
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Originally Posted by east_west View Post
True, but why not go after higher yield NA markets compared to what has been reported as low-yield BKK. Low cost structure means even more profit.

UA reported 14.6c stage-adjusted yields for NYC-TPE, higher than HKG and ICN (on 1 stop flight options, so presumably IAD/BOS would be fairly similar). Non-stop service should only be higher.
This isn't quite an apples to apples comparison as UA's target market are passengers either:
  • Flying to TPE only from SFO, vice versa
  • Connecting via SFO to fly to TPE, vice versa. They can draw passengers from basically any of the domestic ports UA flies to

BR, meanwhile, relies on Tier 1 NA cities with large, predominantly Asian populations who want to connect onwards to Asia via TPE. There may be some OD passengers who genuinely want to fly between TPE and NA, but by and large Taiwan's domestic and overseas population alone are not going to be enough to fill planes for some of these markets, particularly for a min 4 weekly frequency to sustain the market. They need the transit traffic. Currently they have most of the Tier 1 cities covered.

Further, there could be cargo considerations at play which makes the yield for MXP overall higher than a new NA city. Flying to the US East Coast would probably create load restrictions which severely limit their ability to carry higher yielding cargo.
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Old Mar 13, 19, 6:59 am
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Originally Posted by someone0000 View Post
This isn't quite an apples to apples comparison as UA's target market are passengers either:
  • Flying to TPE only from SFO, vice versa
  • Connecting via SFO to fly to TPE, vice versa. They can draw passengers from basically any of the domestic ports UA flies to
Further, there could be cargo considerations at play which makes the yield for MXP overall higher than a new NA city. Flying to the US East Coast would probably create load restrictions which severely limit their ability to carry higher yielding cargo.
I'm making two, distinct, arguments. I believe these arguments apply to both BOS/IAD, but PHL is close enough to JFK that it would be hard to make it work.
1) UA has revealed relatively high-yield for the 1-stop NYC-TPE OD market, even in the presence of BR/CI non-stops and multiple other 1-stop options. There was discussion on the UA board about how TPE is probably in line for the next EWR TPAC ahead of ICN. IAD/BOS have similar demographics/affluence and are #6 and #10 in metro population, similar to Toronto.
2) BOS/IAD is bursting at the seams on TPAC, see the 90+ load factors on CX and JL, indicating a substantial amount of connecting traffic.

On the other hand, I do think these routes would be best served by 789s rather than 777s, and this would limit cargo. But routing cargo via BKK doesn't seem to be optimal from a cost point of view.
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Old Mar 13, 19, 1:35 pm
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Europe-BKK has good yields but that doesn't mean US-BKK will have good yields because definition of good yield is relative to operating costs. Europe-BKK is roughly 5,000 nautical miles while US West Coast to BKK is over 7,000 nautical miles. You need much higher average fare for US-BKK to justify non-stop flights.

BOS or IAD to Asia is potentially good market for BR but east-west is probably right about equipment for cargo. I think BOS is a little saturated right now with JL, CX, HU. BR can take a wait and see approach.

Another one that people like to talk about is SJC-TPE. 77W definitely won't work on that route due to airport restrictions.
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Old Mar 13, 19, 7:21 pm
  #50  
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Originally Posted by east_west View Post
I'm making two, distinct, arguments. I believe these arguments apply to both BOS/IAD, but PHL is close enough to JFK that it would be hard to make it work.
1) UA has revealed relatively high-yield for the 1-stop NYC-TPE OD market, even in the presence of BR/CI non-stops and multiple other 1-stop options. There was discussion on the UA board about how TPE is probably in line for the next EWR TPAC ahead of ICN. IAD/BOS have similar demographics/affluence and are #6 and #10 in metro population, similar to Toronto.
2) BOS/IAD is bursting at the seams on TPAC, see the 90+ load factors on CX and JL, indicating a substantial amount of connecting traffic.

On the other hand, I do think these routes would be best served by 789s rather than 777s, and this would limit cargo. But routing cargo via BKK doesn't seem to be optimal from a cost point of view.
BR evaluates cargo+pax for route considerations. 789 on BOS-TPE would barely be able to haul any, making it not as profitable as they would like. BR's SFO morning flight performs terribly in the cabin, but continues because cargo is filling the belly to the brim.
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Old Mar 15, 19, 10:04 pm
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Originally Posted by bzcat View Post
North America expansion is on hold because of competition basically...
Doesn't seem to have stopped BR expanding Seattle service... SEA gets JL, CX, and SQ this year, and BR still expanded SEA from 7x to 10x weekly.

Personally I am highly skeptical that SEA has enough trans-Pacific passengers to support all these airlines. But it is nice to now finally have good representation of OneWorld to Asia. Until now we've had none, now we'll have 2.
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Old Mar 16, 19, 4:18 am
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Originally Posted by tai4de2 View Post
Doesn't seem to have stopped BR expanding Seattle service... SEA gets JL, CX, and SQ this year, and BR still expanded SEA from 7x to 10x weekly.

Personally I am highly skeptical that SEA has enough trans-Pacific passengers to support all these airlines. But it is nice to now finally have good representation of OneWorld to Asia. Until now we've had none, now we'll have 2.
Upgauge is in response to the new services. Hence why they are also starting a very heavy SEA ad campaign.
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Old Mar 16, 19, 4:52 am
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Originally Posted by someone0000 View Post
Reported in Taiwan's Economic Daily News today:
  • Plan for 4 weekly flights to MXP from early 2020
  • Planning underway for a destination in Germany (currently rumoured to be MUC)
  • BNE moving to 78J starting Nov 2019
Good news, will use BR to BNE in Nov/Dec 2019.

Originally Posted by flyingeverywhere1 View Post
I'm kind of surprised that they start to focus on growing in Europe before some U.S. cities! Still remembering a few year ago EVA was talking about expanding to BOS, IAD in North America.. Does EVA even have right to operate route to Germany?

With Europe transitions to 789.. Wonder where they will put their 777s.. The only long haul expansion with 777 now is 3x weekly SEA for now.

But good news for EVA and TPE for getting some new destinations!
What about the remaining European routes? With four frames they are getting less than a handul of 789. Wasn't it AMS and VIE so far only?
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Old Mar 16, 19, 4:53 am
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Originally Posted by someone0000 View Post
A big assumption to all this is that the new service will be a nonstop TPE-MXP flight, which the article does not say. If it's a fifth freedom flight via BKK then it will capture effectively all of the above categories, noting that if it operates as a day flight from TPE and an evening flight back:
  • Morning departure from TPE allows BR to capture SE Asia transit traffic
  • BKK-MXP-BKK leg serves OD passengers well with a noon departure from BKK and an evening departure from MXP
  • BKK-MXP-BKK will have no overlap with TG's current service which is an evening departure from BKK followed by an early morning arrival back in BKK
  • BKK-TPE return leg serves NA connecting traffic
I work with students going out from Taiwan and wish there more Taiwan-EU flights as at certain times seats are hard to find. EU is a growing market for students while US bound students are becoming less each year from Taiwan. Prices for student EU flights are higher in General but offset much lower school fees so demand is growing . So not sure any growth to the States in student traffic,but there is growth in the Taiwan-Canada market and students can fly via LAX?SFO/SEA ect. so maybe this marketing is growing.
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Old Mar 16, 19, 5:08 am
  #55  
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Originally Posted by iamamadscientist View Post
Good news, will use BR to BNE in Nov/Dec 2019.



What about the remaining European routes? With four frames they are getting less than a handul of 789. Wasn't it AMS and VIE so far only?
CDG is remaining 777, as is LHR. Both routes have more than enough cargo and demand to sustain a full 777 (CDG LF is 90%+ with full cargo and LHR is premium heavy)
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