China Airlines Ltd’s (CAL, 中華航空) Singapore branch holds a mixed outlook for this year, saying that its passenger business has almost recovered from the impact of the COVID-19 pandemic while its cargo business continues to suffer from correction in the semiconductor industry.
“Our passenger number has rebounded to almost 80 percent of pre-COVID levels, as people embrace air travel again,” CAL Singapore branch general manager Tseng Wen-hui (曾文慧) told reporters at a media briefing in the city-state.
The airline offers four daily flights between Taiwan Taoyuan International Airport and Singapore’s Changi Airport, with two flights focused on young passengers, Tseng said.
Photo: Kao Shih-ching, Taipei Times
The flight is particularly popular among young Singaporeans, since it arrives in Taoyuan early in the morning, allowing passengers to transfer to flights to Japan or South Korea, she said.
Passenger business makes up about 40 percent of CAL Singapore’s revenue, while air cargo accounts for the rest, Tseng said.
The branch’s cargo business boomed over the past two years as Taiwanese semiconductor companies bought more machines from Singapore and freight demand for such goods was strong, she said.
Other main cargo goods are electronic components, chemicals, aviation components and medical supplies, she added.
Overall, CAL Singapore’s cargo volume grew 6.5 percent annually in 2021 and remained flat last year, Tseng said.
The airline made it into the top three air cargo players in Singapore for the first time last year, behind Singapore Airlines Ltd and FedEx Corp, she said.
The branch has a more cautious outlook for its cargo business this year, as demand has dropped amid inventory adjustments in the semiconductor industry, CAL Singapore cargo manager Lee Chia-cheng (李佳錚) said.
“Our forecast is that cargo demand might rebound in the fourth quarter this year, as it would take some time to solve the inventory issues,” Lee said.
Singapore serves as the bridge between Southeast Asia and Northeast Asia and North America, Tseng said.
CAL serves not only Singaporean companies, but also those in Malaysia, Philippines and Vietnam, she said.
With more companies transferring their manufacturing bases from China to Southeast Asian countries, it would have a mixed impact on Singapore, Lee said.
The shipments of raw materials from China to Southeast Asian countries might decrease, but the airline expects rising trade between Southeast Asia and Taiwan as well as other countries to support the cargo business, he said.
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