Can scheduled cross-Strait services deliver rich rewards?

Taiwan and Mainland China launched regular (scheduled) cross-Strait services on 31-Aug-2009, ending a six-decade absence. It is a major step forward for relations across the Taiwan Strait and comes at a crucial time for airlines on both sides that are feeling the effects of dramatically weakened demand on international routes. [1276 words]

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This report contains the following subheadings:

• Massive increase in capacity
• Taiwan carrier use large capacity aircraft on cross-Strait services
• Strong results on existing cross-Strait services
• Perfect timing for Mainland and Taiwanese carriers, but not so good for Hong Kong and Macau

This report contains the following charts and tables:

• Expanded cross-Strait flights agreement
• CAAC cross-Strait service frequency allocations 
• Taiwan Airlines’ expanded cross-Strait flights agreement