US embassy cable - 05TAIPEI3717

UNCLAS SECTION 01 OF 02 TAIPEI 003717 
 
SIPDIS 
 
DEPARTMENT FOR EAP/RSP/TC 
 
DEPARTMENT PASS AIT/W AND USTR 
USTR FOR TIM WINELAND 
USDOC FOR 4430/ITA/MAC/EAP 
TREASURY FOR OASIA - WISNER 
 
E.O. 12958: N/A 
TAGS: EAIR, ECON, PREL, TW, CH, Foreign Policy, Cross Strait Politics, Cross Strait Economics, Transportation 
SUBJECT: TAIWAN'S AIR CARRIERS BEGIN FLIGHTS OVER 
CHINA 
 
Ref: A)TAIPEI 3292 B)TAIPEI 3661 
 
1.  Summary:  On September 5, four Taiwan air carriers 
have started to fly through China's flight information 
region (FIR) to South Asia, the Middle East and Europe. 
The PRC granted overflight permission to the four 
carriers on September 2 less than one month after 
Taiwan Premier Frank Hsieh announced Taiwan would 
permit such flights.  In a separate cross-Strait 
aviation development, Hong Kong Express Airways 
launched the first Hong Kong-Taichung charter service 
on September 3.  End Summary. 
 
PRC Approves Taiwan Overflight Requests 
--------------------------------------- 
 
2.  On September 2, 2005, China's General 
Administration of Civil Aviation (CAAC) announced that 
four Taiwan airlines, CAL, EVA Airways, UNI Airways, 
and Mandarin Airlines, would be permitted to begin 
regular flights from Taiwan through China's flight 
information region (FIR) to international destinations. 
The move came less than one month after Taiwan's 
Premier Frank Hsieh announced on August 3 that Taiwan 
would allow such flights in order to save fuel.  China 
authorized four Taiwan air carriers a total of 124 
passenger and cargo flights per week through China's 
FIR to Europe, South Asia and the Middle East.  They 
will benefit from an annual cost savings of up to NTD 
400 million (about USD 12.5 million). 
 
First Flights Take Off, Some Routes Denied 
------------------------------------------ 
 
3.  CAL and EVA Airways became the first beneficiaries 
of new overflight authorization.  On September 5, the 
first CAL cargo flight flew over Hong Kong, China, 
Burma, Bangladesh, Pakistan, Iran and Oman on its way 
to the United Arab Emirates; and the first CAL 
passenger flight passed over China on its way from 
Taipei to Hanoi, Vietnam.  EVA Airways' first cargo 
flight through China's FIR flew from Delhi, India over 
Yunnan, Guangzhou, and Hong Kong to Taipei; and its 
first passenger flight flew from Taipei over Hong Kong 
and Guangzhou to Laos.  CAL has scheduled 70 passenger 
and cargo flights per week through China's FIR, and EVA 
Airways has 40 flights per week planned.  Both UNI 
Airways and Mandarin Airlines started flying over 
China's FIR on September 7.  UNI Airways has scheduled 
eight flights per week from Kaohsiung through China's 
airspace to Hanoi; and Mandarin Airlines has scheduled 
six flights per week from Taipei to Rangoon, Burma. 
However, the PRC's CAAC rejected several routes 
requested by CAL and EVA Airways through northern 
China's FIR citing heavy air traffic in the region. 
 
 
HK-Taichung Charter Flights Start by HKEA 
----------------------------------------- 
 
4.  Hong Kong-based Hong Kong Express Airways Ltd. 
(HKEA), which just started operations on August 8, 
2005, has become the first airline to offer Hong 
Kong-Taichung charter flight service.  Taiwan approved 
HKEA to fly five round trips between Hong Kong and 
Taichung from September 3 through 7.  The first flight 
left Hong Kong on September 3 carrying passengers that 
included HKEA executives and Hong Kong journalists. 
Round trip tickets cost NTD 4,000 plus an additional 
airport tax/fuel tax and insurance of NTD 1,700 (about 
USD 175 altogether).  Taiwan's airlines have not yet 
expressed interest in offering similar charter 
services.  Currently, Taichung's Chingchuankang airport 
offers service for Taiwan's domestic routes and various 
charter flights to Japan, Bali and Phuket.  An 
expansion project is underway to improve the airport's 
facilities and make it more suitable for international 
flights. 
Keegan