China Airlines (CI, Taipei Taoyuan) could become the latest East Asian carrier to launch a Low Cost Carrier subsidiary according to a report in the Taipei Times. In light of the growing threat from regional budget airlines such as AirAsia (AK, Kuala Lumpur International), AirAsia X (D7, Kuala Lumpur International), Jetstar Asia Airways (Singapore Changi), Cebu Pacific Air (5J, Manila Ninoy Aquino International), Peach Aviation (MM, Osaka Kansai) and Tigerair (Singapore Changi) among others, China Airlines is reportedly considering one of three options open to its apropos a new budget carrier. Firstly there is the possibility of making over its subsidiary, Mandarin Airlines (AE, Taichung Ching Chuan Kang), into an LCC. Secondly, it could go it alone and develop an all-new carrier by itself or lastly, it could chose to partner another established operator in the creation of the new LCC. CAL chairman Sun Hung-hsiang has said his airline would have no problem meeting the regulatory criteria needed to launch a new airline but noted that once CAL decides to enter the LCC market, it may need to embark on an fleet expansion programme to raise overall passenger carrying capacity.