Taiwanese airlines yesterday welcomed Premier Frank Hsieh's (謝長廷) announcement that the government will allow them to fly through China's air space, although a formal arrangement still has to be hammered out in negotiations between the two governments.
"It is good news for both carriers and consumers, who will be able to shorten their flying time," said Nieh Kuo-wei (
EVA Airways, the nation's second-largest carrier, said the new measure could help the company save between NT$150 million (US$4.7 million) and NT$200 million in fuel costs, although passengers would undoubtedly be the biggest beneficiary.
PHOTO: FANG PIN-CHAO, TAIPEI TIMES
Nieh said that six of EVA Airways' routes could be changed to fly over China's air space, which would strengthen the carrier's competitive edge.
Flying over China would shorten the Taipei-Paris route by one hour to 11 hours. Ten to 15 minutes could be shaved off the Taipei-Hanoi route, and the cargo flight between Taipei and New Delhi or Mumbai could be shortened by 15 to 30 minutes.
Boosted by the latest cross-strait development, share prices of EVA Airways soared 4.7 percent to NT$15.75 on the Taiwan Stock Exchange yesterday.
China Airlines (
However, the government will first have to issue formal documents making legal provision for flights across China, following which carriers will have to apply for approval from the Chinese government, Nieh said.
"There's nothing special in this case, as we all have to follow the customary practice of getting approval from the nations whose air space our aircraft will have to fly across," he said.
Currently, airliners have to skirt China's air space as stipulated in the Act Governing Relations Between Peoples of The Taiwan Area and the Mainland Area (
China Airlines, the nation's largest carrier, said it will conduct an assessment to choose suitable routes for the application.
The company currently operates 19 passenger flights and 13 cargo flights to Europe per week.
"It's hard to say how much we can save before carefully calculating the range of effects it will create," said China Airlines spokesman Johnson Sun (
"But we'll definitely apply for approval for flights between Taipei and New Delhi, Hanoi and Vienna," Sun said.
On the question of whether Hsieh's proposal would pave the way for direct links between Taiwan and China, Sun said that if direct charter flights across the Taiwan Strait could be launched on a regular basis, it would certainly be a good thing.
"It's too early to say that the government's message will act as a prelude to the implementation of direct links," Nieh said.
"It still requires some time of observation as there are other obstacles to be removed," he said.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process