Resolution to air links row in sight

Taiwan and the Philippines may resume direct flights this week, as soon as details on seat entitlements -- one of the main sources of the months-old dispute -- are ironed out, Ministry of Foreign Affairs officials said yesterday.

Minister of Foreign Affairs Chen Chien-jen (程建人) told reporters that both sides have reached a consensus to resume flights in the near future.

"The negotiations have been running smoothly over the last few months. Under conditions acceptable to both sides, direct flights should resume this week or even in the next one or two days," Chen said.

Shih Ting (石定), the director of the foreign ministry's department of East Asian and Pacific affairs, said Taipei is ready to reduce the overall number of passengers but he declined to specify the final figure.

"The government in Manila is discussing the matter but it has not decided on a final position yet," Shih said.

"But negotiations on seating capacity have to be concluded before flights can resume," he added.

Direct aviation links between Taipei and Manila were suspended last Oct. 1 when Philippine authorities unilaterally abrogated a 1996 aviation agreement.

That agreement set a seating quota for passengers flying on Taiwan's airlines at 9,600 per week for those travelling or transiting between Taipei and Manila, and also covered sixth freedom rights, which allow Taiwan carriers to pick up passengers in Manila and transfer them to a third destination via Taipei.

Philippines Airlines (PAL) claimed that EVA Air and China Airlines (CAL) were poaching passengers on the profitable route to the US by overloading and using larger aircraft than permitted under the agreement. Manila later reinstated the 1996 agreement in late November, but the situation remained deadlocked.

An offer by Taiwan to reduce the seating entitlement was intended to show goodwill during subsequent, unsuccessful talks held on Dec. 1.

However, negotiations stalled over the issue of sixth freedom rights, Shih said.

Manila has been eager to resume direct flights to reduce the increased time and flight costs for an estimated 115,000 Filipino workers employed in Taiwan.

Authorities at the Manila Economic and Cultural Office (MECO) have also cited a slump in Taiwan tourists traveling to the Philippines since the suspension of air links.

The Taipei-Manila air dispute first began in July when PAL complained that it could not compete with lower ticket prices offered by CAL and EVA Air on the profitable US routes.

PAL argued that the US route, which carries an estimated 2 million Filipinos per year, is central to the company's survival, so Manila withdrew the 1996 agreement in violation of international regulations that call for one-year notice before taking such action.

Philippine Transport Secretary Vicente River Jr said in Manila on Monday that the two sides are expected to resume flights this month.

"We are now in the final stage of the negotiations," said Rivera, noting feedback from Taiwan has been "positive."