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"throat-cutting Price" War In Taiwan

Fri Oct 11, 2002 1:35 pm

Hong Kong media reporting that a "throat-cutting price" war currently going on in Taiwan.

"throat-cutting price" is usually a special term in Taiwan when describing a price drops dramatically. 

China Airlines now offers USD$85.54 RT between Taipei and Hong Kong on evening flight. The difference is about USD$160.26.

United Airlines also announce major fare slashing on flights to US from Taipei. Taipei to New York now costs USD$641.04, and USD$576.94 to LAX and SFO.

SIA offers USD$737.20 between Taipei and LAX, with a free ticket between TPE-HKG and TPE-NRT.
 
nonrevman
Posts: 1258
Joined: Mon Nov 19, 2001 6:33 am

RE: "throat-cutting Price" War In Taiwan

Fri Oct 11, 2002 11:11 pm

I think the deep discounts started with China Airlines. For quite a while, they have had round trip ticket prices in the 500$ range (including taxes) between the US and several cities in Asia. They deeply slashed fares in order to attract passengers---after all the trouble that they had, they had no choice but to do this. I guess if the other carriers are discounting fares from Taipei, it is a sign that CI is getting some business.

Those fares certainly were an eye opener for me. They are not much higher than a rountrip nonrev (ID-90) pass on those transpacific routes. I would rather pay the extra 100$ and fly on a confirmed ticket  Smile
 
chiawei
Posts: 924
Joined: Wed Nov 01, 2000 9:07 am

RE: "throat-cutting Price" War In Taiwan

Sat Oct 12, 2002 9:36 am

typical CI.

CI's pattern is crash->drop in load factor-> loss setting price cuts-> people forget->load factor increase-> another crash.