TransAsia in accord with New World

TransAsia Airways (復興航空) yesterday inked a deal with New World Express Cargo Co (信達利航運公司), a Macao-based cargo forwarder, that will see the airline begin the first regular freight service between Taipei and the Beijing-controlled territory.

TransAsia, along with EVA Air (長榮航空) and Air Macao (澳門航空), is one of the few airlines to service the Macao-Taiwan route. It will fly an ATR 74, reconfigurated to handle only cargo, 12 times a week.

Tony Fan (范志強), chairman of TransAsia Airways, said during a signing ceremony at Sungshan Airport yesterday that he hoped the new regular service would boost cargo revenue to NT$400 million, up from NT$250 million last year.

"Computer components made in Hsinchu can be shipped through Macao to downstream processing operations in [Jiangsu Province's] Kunshang and Wujiang the next day, and then on to retail outlets in Shanghai," Fan said.

TransAsia has recently seen steady growth in the charter-cargo market between Taipei and Macao, with tonnage climbing from 5,175 tonnes in 1999 to 8,681 tonnes last year, Fan said.

Over two-thirds of cargo shipments between China and Taiwan currently move through Hong Kong.

However, Air Macao is also preparing to establish regular cargo services with Taiwan in April, according to local Chinese-language media.

Although any earnings benefits from the route would be lost if direct links were ever established across the Strait, Oliver Yu (游芳來), director general of the Civil Aeronautics Administration applauded the move.

"In such difficult economic times for the airline industry, TransAsia has set a good example for others by working hard to create new business opportunities," Yu said.

TransAsia had previously only flown freight by charter in the cargo holds of its 50 passenger flights between Taiwan and Macao. It will now become the first to provide regular cargo services between the two locations.

Executives would not reveal the financial details of the deal between TransAsia and New World, except to say that the service will be operated for six months, after which the agreement may be extended based on performance.