China Airlines jet bursts into flames

China Airlines said it would compensate passengers NT$1,000 per kilogram of luggage, with a maximum compensation of NT$20,000 in accordance with civil aviation regulations. Compensation for the passengers' mental suffering had not been decided.

China Airlines has a patchy safety record and this is the carrier's fourth accident in 13 years.

After devoting huge resources to improving safety and regaining public confidence, the company was starting to see some positive results.

Despite high aviation fuel costs, the company posted a net income of NT$738.35 million (US$22.5 million), or NT$0.20 per share, last year. Company chairman Philip Wei (魏幸雄) said its operating costs were lower because of a lower insurance premium, which was 45 percent less than what the carrier used to pay, because of its better flight safety record.

But the carrier is once again under fire over the accident in Okinawa. The airlines' already ailing finances will be also affected by the loss. For the first quarter of the year, the carrier reported a loss of NT$805.83 billion, or negative NT$0.21 per share.

Following the accident, China Airlines president Ringo Chao (趙國帥) led a team to Okinawa.

During a press briefing last night, Chao said he regretted the accident and appreciated the aid offered by Japanese authorities.

Chao also said the company was uncertain of the cause of the explosion and would rely on the findings of investigators.

The last accident involving China Airlines was on May 25, 2002, when a Boeing 747-200 broke up and crashed into the sea near the Penghu Islands 20 minutes after takeoff from Taipei on a flight to Hong Kong. The crash caused the death of all 206 passengers and 19 crew members.

Meanwhile, the Air Force yesterday said that it would carry out stricter maintenance on Air Force One, which is also a 737-800.

"Because of a request from the Civil Aeronautics Administration, we will carry out a special detailed check on the aircraft as soon as possible," said Lieutenant General Jason Liu (劉介岑), spokesman for Air Force Command Headquarters.

Additional reporting by Jimmy Chuang