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Sustainable Supply Chain Management
STARLUX Airlines, as an air transportation service provider, operates across Taiwan, Northeast Asia, Southeast Asia, and North America. Its core business includes passenger and cargo transportation, while offering diversified services such as in-flight sales and retail. The air transportation industry relies on the complementary collaboration of upstream, midstream, and downstream sectors to establish a seamless service flow and meet customer needs.
Upstream, Midstream, and Downstream Industries Overview
Upstream
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Aircraft manufacturers
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Aircraft engine manufacturers
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Aircraft leasing companies
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Ground service equipment manufacturing/modification
Midstream
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Airline operations
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Petroleum industry
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Aircraft maintenance companies
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Airline catering companies
Downstream
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General public
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Travel agencies
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Freight forwarders
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Courier services
STARLUX Airlines’ supply chain includes upstream suppliers such as aircraft and engine manufacturers, aircraft leasing companies, and ground service equipment providers.
To achieve carbon reduction goals, aircraft are acquired through direct purchase or leasing from international aircraft lessors, forming the primary source of the company’s airline capacity. Additionally, the airline employs the latest ground service equipment at airports to advance vehicle electrification, including electric tow tractors, electric shuttle buses, and solar-powered escalator service vehicles that charge vehicle batteries.
Downstream, STARLUX Airlines serves the general public, travel agencies, freight forwarders, and courier services. The company strives to enhance the online ticket booking experience while closely collaborating with travel agencies to assist with related services such as visa processing and hotel arrangements. Moreover, STARLUX actively partners with courier companies and expands collaboration with airline alliances to extend its business reach.
Supplier Selection
STARLUX Airlines adopts the Supply Chain Operations Reference(SCOR) model, which encompasses five dimensions: Planning, Procurement, Manufacturing, Logistics, and Reverse Logistics, to review upstream and downstream supplier relationships and to design a sustainable supply chain tailored for STARLUX Airlines.
| Planning | Define core businesses based on industry characteristics and core competencies. |
| Procurement | Assess product necessity prior to acquisition. |
| Manufacturing | Manage wastewater, greenhouse gas emissions, and metal pollution during production processes. |
| Logistics | Plan the most efficient transportation routes. |
| Reverse Logistics | Recycle and remanufacture materials into new products. |
Local Procurement
STARLUX’s primary operations are based in Taiwan, where the company actively collaborates with local suppliers to create employment opportunities and support regional development. In 2024, among the top ten suppliers by procurement value, approximately 42.25% of purchases were made from local suppliers.Unit: NT$ million
| 2024 | Aircraft Materials | Fuel | In-flight Service Supplies | System Fees | Total |
|---|---|---|---|---|---|
| Total Procurement Amount from Local Suppliers | - | 4,810.10 | 1,053.05 | - | 5,863.15 |
| Total Procurement Amount | 5,873.13 | 6,357.90 | 1,053.05 | 594.35 | 13,878.43 |
| Percentage of Procurement from Local Suppliers | - | 75.66% | 100.00% | - | 42.25% |
| 2023 | Aircraft Materials | Fuel | In-flight Service Supplies | System Fees | Total |
|---|---|---|---|---|---|
| Total Procurement Amount from Local Suppliers | - | 2,887.19 | 781.12 | - | 3,668.31 |
| Total Procurement Amount | 4,759.00 | 4,557.58 | 781.12 | 459.24 | 10,556.94 |
| Percentage of Procurement from Local Suppliers | - | 63.35% | 100.00% | - | 34.75% |
| 2022 | Aircraft Materials | Fuel | In-flight Service Supplies | System Fees | Total |
|---|---|---|---|---|---|
| Total Procurement Amount from Local Suppliers | - | 734.09 | 112.45 | - | 846.53 |
| Total Procurement Amount | 2,439.95 | 1,195.89 | 112.45 | - | 3,748.29 |
| Percentage of Procurement from Local Suppliers | - | 61.38% | 100.00% | - | 22.58% |
STARLUX Airlines continues to advance its “local procurement” strategy to ensure stable energy supply and sustainable development. Amid global market fluctuations and rising transportation costs, the company has increasingly relied on local energy resources.Procurement data from the top ten suppliers show a significant increase in locally sourced fuel since 2022. The local procurement rate was 61.38% in 2022, rising to 63.35% in 2023, and further increasing to 75.66% in 2024.Despite the growing fleet size and increasing fuel procurement expenditures, the proportion of locally sourced fuel has steadily risen. This approach not only mitigates risks associated with long-distance transportation but also effectively reduces carbon emissions, contributing to environmental protection and the development of the local economy.
STARLUX Airlines continues to advance its local procurement strategy to ensure stable energy supply and support sustainable development. Amid global market fluctuations and rising transportation costs, the company has increasingly relied on local energy resources.
Data from the top ten suppliers show a notable increase in locally sourced fuel since 2022. The local procurement rate was 61.38% in 2022, rising to 63.35% in 2023, and further increasing to 75.66% in 2024.
Even as the fleet expands and fuel procurement expenditures grow, the proportion of locally sourced fuel has steadily increased. This strategy not only reduces risks associated with long-distance transportation but also effectively lowers carbon emissions, contributing to environmental protection and the development of the local economy.