STARLUX Airlines Is Already Facing Troubles (83% Capacity Cut)

Real World Aviation
#1

STARLUX, the new Taiwanese start-up carrier just had its inaugural flight last week on January 23.

However, they’re already facing trouble.

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STARLUX currently flies from its hub in Taipei Taoyuan to three destinations: Macau, Da Nang, and Penang.

  • Taipei to Macau operated 3x daily.
  • Taipei to Da Nang (Vietnam) 2x daily
  • Taipei to Penang (Malaysia) 1x daily.

However, since the coronavirus broke out, STARLUX announced it will scale back Macau down to 1x daily flight only.

From their Facebook:

= LATEST ANNOUNCEMENT =
Due to the effects of the new coronary virus outbreak, the flight movements of Starlux to Macau are as follows, and you can also check the flight movements 🔎 http://bit.ly/2O3jPq3
From January 30 to March 28:
🖋 Taoyuan - Macau Jx205, Macau - taoyuan jx206 cancelled
From February 16 to March 28:
🖋 Taoyuan - Macau Jx203, Macau - taoyuan jx204 cancelled

Following this, just yesterday, STARLUX faced more problems as Vietnam temporarily banned all flights from Taiwan, Hong Kong, China, and Macau meaning STARLUX was forced to cancel its Da Nang flight.

However, a few hours later, Vietnam reversed the ban and STARLUX was allowed to continue flying.

Facebook’s translate:
image

As of 3/4/20, STARLUX has reduced capacity by 83.3%. They now only operate one daily flight between Taipei and Da Nang.

Hopefully things recover as it’ll be a huge shame if STARLUX continues to reduce flights.

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#2

It would be a real shame if Starlux were to collapse. In my opinion they have a beautiful and classy livery, and I thought they had a lot of potential, almost to become like the Emirates of Asia. However with the coronavirus outbreak and air travel rates decreasing, its uncertain of what could happen to Starlux.

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#3

I think this is a bit of sensationalism for you. Any airline, especially one that is just starting up, takes into account anything that could disturb operations. Extra precautions would be taken to ensure flights are running in the airline’s first week of operation. They wouldn’t have purchased new aircraft and launched if/until they were financially stable, taking into account any unforeseen disturbances.

I think you are underestimating how common face masks are in SE Asia.

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#4

I… don’t think they were expecting a virus to break out that caused over 50 airlines to cancel China flights?

And they did, until they decided to cancel the two Macau flights until March 28.

Not really sure on that. I flew multiple times in and out of Taipei, Hong Kong, Beijing and other cities in the area this past summer and winter. Even at the airports and on-board aircraft, I don’t recall many people wearing face masks. Looking over my footage of HKG, TPE, on-board flights, and more, I don’t see anyone wearing masks.

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#5

Neither did anyone. But I think you are exaggerating the risk of them going bankrupt or into liquidation. They’d be in a good financial state to deal with this otherwise they wouldn’t have launched, is what I’m saying. It would’ve been just as bad if a volcano close by to a key destination erupted. Cancelling flights is an option, and a smart option at that, which would cost them less than continuing to run services. I’m sure the airline is in a totally sound state and will continue operating.

Oh well. Maybe my experience is different. I’ve found face masks to be commonplace in SE Asia especially China I’m assuming. They weren’t that frequently shown in the video, and anyway, this is getting off topic.

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#6

So… yeah. They didn’t take into account this one. While they’re not necessarily prone to going bankrupt, they will likely experience difficulties which will hinder their future operations and expansion plans.

To be honest, I don’t believe a volcano has caused a 2+ month suspension of flights?

At this rate, the effects will likely flow into the months past the estimated time airlines are expecting flights to resume. Has there ever been any mass-cancellation at this scale in the past? (Besides 9/11)

While cancelling flights will benefit them, what will they do with their aircraft? They’ll be sitting around Taipei without generating revenue.

Operations will eventually resume, but it’ll be rocky.

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#7

Righto, I agree with you. I only brought this up because I can’t see an official source providing validity to anything you suggested, and I don’t see the likelihood of Starlux going into liquidation any time soon as a result of this. They can withdraw completely from a route and stop spending a cent on any fees (and they’d be paying reduced fees on routes they can’t operate right now, which they should be able to afford if they launched in a financially sound state). This is just speculation at this point. But continue.

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#8

Uh oh, I love seeing new airlines but hate seeing them collapse. 😔

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#9

So what is actually happening? Are there any actual profit warnings or signs of bankruptcy?

As far as I’m concerned, if there aren’t then this topic has very little purpose other than informant everyone what we already know in regards to the bans. The airline should have enough cash flow to ensure its survival…they bought new planes after all…

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#10

This would be super unfortunate. Starlux seemed like an airline that would be really successful but their timing may cause them to shut down. That’s really bad luck

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#11

Yeah, I really worded this badly.

The point is to show how badly they’re getting screwed over as an airline that just launched last week.

The reduction in Macau and cuts to Da Nang temporarily forced them to reduce capacity by 71.4%, but after Vietnam’s reversion capacity is only decreased by 42.8%, so far.

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#12

Wow an airlines entering at a not very great time with all that’s happening in the real world 😑. Hope for the best of them👍

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#13

With all the airline collapses on 2019, we need more airlines. STARLUX seems to have potential, but at this bad time, who knows if they’ll get through. Hoping the best for another startup airline!

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#14

That is a nice livery! I hope it will be successful. 🇹🇼 🇲🇴 🇻🇳 🇲🇾 It would definitely be a shame if this airline failes @SimpleWaffles

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#15

2018-2019 had the fall of about 30+ airlines. Maybe if we’re lucky 2020 will be slightly better.

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#16

STARLUX is scaling their operations back even further.

https://www.routesonline.com/news/38/airlineroute/290073/starlux-cancels-penang-in-marchapril-2020/

They are now cancelling their daily Taipei to Penang route along with all 3 daily Taipei to Macau flights, in addition to cancelling one of two daily Da Nang flights.

This means STARLUX only operates one daily flight, Taipei to Da Nang, and that’s it.

Its inaugural Taipei to Cebu flight has been delayed from April 6 to July 1.

Operations will gradually return in the following months.

In total, this represents an 83.3% capacity cut for the airline compared to its inaugural launch date on January 23… really bad.

#17

I hope it comes to the game before the company collapse.
My hometown airline company…

#18

I only have one thing to say about this.

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#19

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#20

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