Airfares for outer islands set to rise by next month

The Civil Aeronautics Adminis-tration yesterday approved requests to raise the ceiling on airfares for flights to Taiwan's outlying islands by up to 70 percent next month.

"Airfares to the outlying islands route haven't been adjusted in nine years ... To reflect current costs, the government decided to allow the price increase," said Amy Ling (凌鳳儀), director of the administration's air transportation department.

China Airlines Co's (中華航空) subsidiary Mandarin Airlines (華信航空) and Evergreen Group's (長榮集團) UNI Airways (立榮航空) are the only two companies offering flight services on these routes.

The unprofitable routes -- between Taiwan and Orchid Island, Green Island, Matsu, Makung as well as Chimi and Wangan -- have resulted in losses at these two companies of some NT$120 million last year.

Staring from Sept. 12, ticket prices on flights between Taitung and Green Island will see the most significant increases -- up from NT$602 to NT$1,028 one-way, while other routes may see prices rise 30 percent to 50 percent.

The administration hopes to lower the airlines' losses, which the government then subsidizes, to around NT$72 million.

Although consumers will have to pay more, residents of these islands will be spared from the price hike.

"We have reached an agreement with UNI Airways and Mandarin Airlines not to increase prices for residents of those island's," Ling said.

On Oct. 1, Mandarin is scheduled to replace UNI's five daily flights from Taitung to Orchid Island and its six daily flights to Green Island.

The deal was made last month when UNI decided to cut its losses and pull out of these routes.

"The government promised that it will fully compensate us for any losses," said Hsiao Hsiao-ling (蕭曉玲), an executive at Mandarin said.

The administration hopes the price hike will encourage tourists to use ferry-boat services between Taitung and Green Island.

"Five boats with a capacity of 250 people per boat run daily on that route," Ling said.

About one-third of Green Island residents fly home, while nearly three-fourths of all tourists choose to fly.

A travel industry professional said tourism is a major business for Green Island and he fears that the price surge will have a negative impact.

"Consumers are always sensitive about prices and like to choose bargains," said Hsiao Kuan-chun (蕭冠群), a manger at Eztravel.com, an online ticketing center.