25/06/2025

BIZ & FINANCE WEDNESDAY | JUNE 25, 2025

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China Airlines holds on to older planes amid 787 delays

UK to increase control over Google in search LONDON: Britain’s competition regulator yesterday said it was proposing to designate Google with “strategic market status” to give it greater control over how the US tech giant operates search services. The Competition and Markets Authority (CMA) said the designation – the first proposed under its new big tech regime – would enable the regulator to force Google to ensure fairer ranking for businesses appearing on Google search. It also proposed making it easier for users to access rival search services and to provide more transparency and control for publishers whose content appeared in search results if it goes ahead with the designation in October. Google should also make its data more portable to help new businesses bring innovative products to market, it said. Google will be the first company designated since the regulator gained new powers this year. CMA CEO Sarah Cardell said Google, which accounts for more than 90% of search queries in Britain, had delivered tremendous benefits but the regulator had found there were ways to make these markets more competitive and innovative. She said the CMA had set out a roadmap of future action against Google. “These targeted and proportionate actions would give UK businesses and consumers more choice and control over how they interact with Google’s search services – as well as unlocking greater opportunities for innovation across the UK tech sector and broader economy,“ she said. Google said the move could have significant implications for businesses and consumers in Britain. “We’re concerned that the scope of the CMA’s considerations remains broad and unfocused, with a range of interventions being considered before any evidence has been provided,“ said Oliver Bethell, Google’s senior director for competition. The CMA said it planned a further action to address more complex issues over a longer period, starting in 2026, such as concerns about Google’s treatment of rival specialised search firms and transparency and control in search advertising. – Reuters Amazon to invest £40b in Britain over 3 years LONDON: Online retail giant Amazon will invest £40 billion (RM231 billion) in the UK over the next three years, the government said yesterday, a boost for Prime Minister Keir Starmer as he struggles to kickstart the economy. Starmer, who met Amazon CEO Andy Jassy last week, said the announcement “adds another major win to Britain’s basket and is a massive vote of confidence in the UK as the best place to do business. “It means thousands of new jobs – real opportunities for people in every corner of the country to build careers, learn new skills, and support their families. “Whether it’s cutting-edge AI or same-day delivery, this deal shows that our Plan for Change is working – bringing in investment, driving growth, and putting more money in people’s pockets,“ he added. The £40 billion will be used to build four distribution centres, creating an estimated 4,000 jobs, and to renovate the historic Bray Film Studios, acquired in July 2024. The investment also includes part of the £8 billion previously announced in September 2024 for building, operating and maintaining data centres in the UK, aimed at boosting artificial intelligence (AI) computer capacity. The announcement coincides with the release of the government’s “Modern Industrial Strategy”, detailing future collaboration between the state and high-growth industries. – AFP

TAOYUAN: Taiwan’s China Airlines is postponing the retirement of some of its older aircraft due to delays in getting Boeing 787-9 jets that may result in compensation payments from the planemaker, the carrier’s newly appointed chairman said. Taiwan’s oldest airline, established in 1959, is in the midst of a fleet renewal, last year splitting an order for new long-haul aircraft worth almost US$12 billion (RM51 billion) at list prices between Boeing and European rival Airbus. China Airlines has also ordered 24 Boeing 787s for regional and some longer-distance routes, including 18 787-9s and six of the stretched 787-10 variant. But chairman George Kao said China Airlines’ fleet renewal plan to replace ageing Airbus A330s and Boeing 737-800s with 787 9s and A321neos was being hit by delays in getting new aircraft delivered, especially the 787-9s. “We are at present being greatly impacted. Some aircraft that were scheduled to be phased out, or handed back at the end of their lease, as some are leased, will remain and have their leases extended,” he told Reuters in an interview at the airline’s headquarters in Taoyuan, home to Taiwan’s main international airport. Boeing has not given China Airlines an exact timeframe for the 787-9 delays, though it has said deliveries will “basically” start from the end of 2025, added Kao, a pilot by training who started out as a flight attendant and became chairman in March. “This is written into the contract,” he said, when asked whether China Airlines would seek compensation. “For example, if it’s in the supply chain, the responsibility is Boeing’s, and Boeing has to provide some compensation. But if it’s not, then there is no compensation. It’s all o Taiwan’s flag carrier in multi-billion-dollar fleet refresh, with Mandarin Airlines also adding new jets

China Airlines aims to boost long-haul capacity with new 777-9s and A350-1000s, as rivals EVA Air and Starlux ramp up competition. – PEXELS PIX

The sale comes as Starbucks has lost market share to lower-priced Chinese rivals in recent years as consumers tighten their purse strings and ever-cheaper options from fast-growing rivals Luckin and Cotti made it more difficult to justify prices of around 30 yuan per cup of coffee. Starbucks’s market share in China has declined from 34% in 2019 to 14% in 2024, according to data from Euromonitor International, a market research provider. Price pressures have increased as big e commerce firms in China offer consumer subsidies to stimulate their food delivery and “instant retail” businesses, referring to deliveries made within one hour. These subsidies and coupons have pushed the price of a cup of coffee even lower, meaning consumers are often paying less than 5 yuan per cup of coffee delivered to their door. Earlier this month, Starbucks announced its first-ever price drop in China, lowering the price of some non-coffee iced drinks by an average of 5 yuan. – Reuters jet aircraft. “I can talk about this with aircraft lessors,” he said, without disclosing the jet models it could add. “We have this plan, to let Mandarin Airlines grow up.” China Airlines faces competition at home not only from long-established rival EVA Air but also rapidly growing Starlux Airlines, which last week placed an order for 10 more A350s. Kao said while the Taiwan market itself was small, transit traffic, which all three airlines are focusing on, meant supporting three full-service airlines was not an issue. Seoul’s Incheon airport is too big, meaning passengers can get lost, Tokyo’s landing fees are too expensive and Hong Kong has “political issues”, whereas Taoyuan airport’s new terminal will greatly improve the travel experience, he said. “Our passengers are not all Taiwanese; many are transit. Because Taiwan’s location, connecting the Pacific to all of Asia, is really very convenient.” – Reuters

recorded in the contract.” Boeing did not respond to a request for comment. Other airlines are facing similar issues. International Air Transport Association director-general Willie Walsh, whose group represents airlines globally, this month called predictions of aircraft delivery delays throughout this decade “off-the-chart unacceptable”. Still, Kao was upbeat about expansion plans, pointing to the more fuel-efficient 777-9s and A350-1000s ordered last year that will enable more capacity to be added to routes like New York and London, and a new third terminal at Taoyuan airport, the first section of which is expected to open later this year. He signalled further aircraft additions ahead for subsidiary Mandarin Airlines, which flies almost exclusively domestic routes with ATR-72 turboprops and is getting a revamp to focus on regional routes from southern and central Taiwan with new

Starbucks not considering full China exit SHANGHAI: US cafe chain Starbucks said it is not currently considering a full sale of its China operations, after Chinese financial magazine Caixin reported that it was, without disclosing where it obtained the information. in its China business, or whether it will keep some parts of its China operations such as its supply chain, said two of the sources. Starbucks declined to comment further on the details of the sale process. Goldman Sachs did not immediately respond to a Reuters request for comment.

Starbucks has held preliminary talks with more than a dozen potential buyers, Caixin also reported on Monday, citing sources who did not specify what was for sale. Starbucks kicked off a formal sale process of its China operations in May, inviting interested buyers to submit answers to a list of questions by the end of last week, said three sources with knowledge of the situation. The Seattle-based company, advised by Goldman Sachs, asked interested buyers about their corporate culture, management style, sustainability measures, how they treat employees as well as the potential deal structure and business plan for Starbucks China, said the people who declined to be named as the information was not public. Starbucks however has not decided yet whether to sell a controlling or a minority stake

Starbucks opened its 1.5 billion yuan (RM894 million) Coffee Innovation Park in the city of Kunshan, neighbouring Shanghai, in 2023. The 80,000-sqm roasting plant has the capacity to supply all of Starbucks China’s stores. More than 20 institutions responded to Starbucks, including a number of private equity firms, one of the sources said. Starbucks is expected to shortlist buyers for next steps, two of them said. “The purpose was to let everyone tell their story freely and choose whatever the best prospect it is and proceed,“ one of them said. Reuters reported in February KKR & Co, Fountainvest Partners and PAG are among buyout firms interested in acquiring a stake in Starbucks’ China business.