Lunar New Year flights in jeopardy as Eva Air pilots vote for strike

The Taoyuan Union of Pilots voted in favour of a strike at Taiwan's Eva Airways, intensifying a dispute over salaries and working conditions. The standoff raises concerns about potential flight disruptions during the crucial Lunar New Year holidays, which commence on Feb. 8 in Taiwan.

Background

The union contends that Eva Airways has failed to raise salaries adequately and has allegedly recruited foreign pilots to address manpower shortages without adhering to the law. On the other hand, Eva Airways asserts that it has consistently increased salaries and has not violated any recruitment laws.

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Negotiations between the union and the airline broke down, prompting the union to initiate a ballot among its members last month. The outcome of the vote authorised the union to proceed with strike action, with the expectation that strikes would occur around the Lunar New Year, though specific dates were not disclosed.

This potential strike would be a major blow to travellers and the wider economy. With the Lunar New Year being a crucial time for family reunions and tourism, the consequences of a pilot strike could be even more significant.

Both sides are facing pressure to avoid such a scenario. The Civil Aviation Administration urged Eva and the union to prioritize passenger rights and communicate well. While emphasizing its willingness to negotiate "until the last moment," the union is adamant about its demands for better pay and working conditions.

Industry impact

Eva Airways, recognized internationally for its distinctive Hello Kitty livery, operates flights across Asia, North America, Europe, and Australia, making it Taiwan's second-largest carrier after China Airlines. This labour dispute follows a significant flight attendants' strike in 2019, during which hundreds of flights were cancelled, marking the longest-ever strike in Taiwan's aviation history.

Despite the current labour dispute, Eva Airways recently finalised an order for 33 Airbus aircraft, signalling continued growth. The deal is estimated to be worth up to $10.1 billion.

Investors reacted negatively to the strike news, with Eva's shares falling 1.8% on Monday. The uncertainty surrounding the situation could further impact the airline's financial performance, especially considering its recent major aircraft order with Airbus.