Corporatised airport authority attempts to restore Taipei as an East Asian hub

Frequently overlooked in the wider scheme of the Northeast Asian air transport, and with local international airlines that have struggled over the past few years, Taiwan is often overlooked in the region. But since President Ma promised 12 projects to drive the economy forward in his 2008 election manifesto, there is a new sense of urgency to restore Taipei’s Taoyuan International Airport and the associated Aerotropolis as an East Asian hub. A state-run company is being set up to operate them. Terminal 1 is being expanded and a new T3 will be built on a BOT basis, inviting in foreign capital and management expertise for the first time – something that has been missing for too long. But these airport development projects will depend on Taiwan's success in positioning its economy strategically in the region over the coming years, with a critical six months ahead. [2050 words]

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This report contains the following subheadings:

• Taiwan-China free trade deal crucial
• Not immune to collapse
• High-speed rail loses its way
• Crying out for foreign expertise
• First BOT project invites foreign contribution
• Hub ambitions
• Outlook: Window of the economy (and politics)

This report contains the following charts and tables:

• Taiwan Airport passenger traffic: 1998 to 2009
• Taiwan total airport traffic: 1998 to 2009
• Taiwan Taoyuan International Airport traffic: 1998 to 2009
• Table 3: Kaohsiung International Airport traffic: 1998 to 2009