China Agrees To Increased Taiwanese Airline Charter Routes | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 12.05.16

Airborne 12.06.16

Airborne 12.07.16

Airborne 12.01.16

Airborne 12.02.16

Airborne Hi-Def On YouTube

Airborne 12.05.16

Airborne 12.06.16

Airborne 12.07.16

Airborne 12.01.16

Airborne 12.02.16

Tue, Jun 24, 2008

China Agrees To Increased Taiwanese Airline Charter Routes

Move May Pave Way For Future Full Direct Service Between Taiwan And Mainland

A political thaw attributed to warming relations between China and Taiwan may soon open new routes to mainland Chinese cities for Taiwanese carriers barred from operations for years due to political tensions between the two nations.

BusinessWeek reports China Airlines made a move toward ending Chinese mainland isolation as Ringo K.S. Chao, the chairman of the Taiwanese carrier, signed a memorandum of understanding in the Chinese city of Guangzhou with China Southern Airlines Chairman Shao-Yong Liu in an initiative to boost cooperation between the two airlines.

In another move, China amended a restrictive policy to allow new routes from Taiwan to the mainland to develop. Formerly allowed to only fly charters from Taiwan to China for special holidays such as Chinese New Year, Taiwanese carriers China Airlines and EVA Airways will begin regular weekend charter service on July 4 over the Taiwan Strait between five Chinese cities and eight Taiwanese cities. The service will only be allowed from Friday to Monday and will still need to fly over Hong Kong, a special administrative jurisdiction, before continuing into China.

Even with the detour, Taiwanese airlines still believe the new routes will be profitable based on past performance with the holiday charters. The new routes may help deflect massive losses the airlines incurred from unprofitable international routes and rising oil prices. China Airlines posted an $84 million loss last year and another $98 million loss in the first quarter of 2008. EVA Airways was right behind when it reported a $62 million loss in 2007 and a $75 million loss in the first quarter of 2008.

In a further move, Beijing has agreed to chartered flights to five more Chinese cities and double the number of cross-strait flights to 72 a week after the Olympics. Both sides hope to take advantage of this new freedom and plan to hold further talks within the next three months addressing an increase in the frequency of charter flights and direct cargo flights.

Negotiations with China to allow direct flights to mainland cities, instead of taking the detour over Honk Kong, may also help to improve the bottom line for the struggling Taiwanese carriers. Morgan Stanley estimates the carriers could save at least 70% on fuel costs per trip if the Hong Kong provision was removed. "If they can do direct links, it mitigates the loss that they would have otherwise," says Chin Lim, an aviation analyst with Morgan Stanley.

Optimists feel the recent movement may open the doors for full service direct flights by the end of 2009.

"We should negotiate as quickly as possible direct flight routes and establishing air control procedures for direct flights," said Yu Fang Lai, vice-minister of Taiwan's Ministry of Transportation and Communications, told journalists in Beijing on June 13, when the two sides announced the July 4 date.

FMI: www.evaair.com, www.china-airlines.com/en

Advertisement

More News

Airborne 12.05.16: AutoGyro Certified, Police Seize Drone, GoPro Job Cuts

Also: Aldrin Evacuated, Shark US, Lufthansa, NASA, ESA's New Orbiter, FLIR Systems, Esterline The expression, “breaking news,” seems to be highly overused nowadays, but>[...]

ANN's Daily Aero-Linx (12.06.16)

Closing Santa Monica Airport: Something Does Not Add Up The latest update from the the Santa Monica Airport pointing out the reasons that the arguments for closing the airport "don>[...]

ANN's Daily Aero-Term (12.06.16): Clutter

In radar operations, clutter refers to the reception and visual display of radar returns caused by precipitation, chaff, terrain, numerous aircraft targets, or other phenomena.>[...]

Aero-News: Quote of the Day (12.06.16)

"Regardless of our appreciation of the public policy arguments raised by opponents, we have been advised that the law and our bilateral obligations leave us no avenue to reject thi>[...]

ANN FAQ: How To Get YOUR News Out On Aero-News

Good News, Bad News... It's ALL News As the preeminent online aviation news resource out there, the editorial staff at Aero-News sees a large number of news releases. We look at al>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC