Direct cross-strait flights could help Taiwan airlines

BEIJING, March 3 -- Some members of Taiwan's aviation industry have called for starting regular charter flights or even opening normal service across the Taiwan Strait, steps that they say would help local airlines deal with competition from domestic express trains and higher fuel costs.

Tony Fan, chairman of the Taipei Airlines Association and president of Taiwan's TransAsia Airways, said that direct flights would benefit carriers, and all policies that helped promote direct flights would be welcomed by the industry.

Since Taiwan's express railway network began operation in January 2007, local airlines have seen passenger traffic slump. In the first 10 months of last year, the airlines saw a 25.3 percent decline in passengers.

Taiwan's Far East Airways has experienced a series of financial crises. The company also said that it hoped direct flights would help reduce risks for investors and encourage the main stakeholder to salvage the company.

Analysts believe that some local airlines could go bankrupt within a year unless there is increased service across the strait.