China Airlines Co (
China Airlines President Chris-tine Tsung (宗才怡) will travel to the US to sign the agreement, she said at the carrier's 42nd anniversary ceremony in Taipei.
The alliance with Delta will help China Airlines raise sales by allowing passengers to use China Airlines tickets to transfer onto Delta feeder services to US destinations on one ticket.
Taiwan's airlines are struggling as Taiwan's economy heads for its first full-year contraction and after demand for air travel and cargo services fell following the Sept. 11 attacks, in which hijacked commercial aircraft were slammed into the World Trade Center in New York and the Pentagon in Washington.
"This has been a tough year following the Sept. 11 terrorist attacks and the slowing economy," said China Airlines Chairman Lee Yun-ning (李雲寧) at the ceremony. "We expect next year to continue to be challenging as Taiwan's entry to the World Trade Organization brings more competition."
Tsung reiterated that the carrier expects to post a profit this year, helped by cost-cutting measures and lower fuel prices.
China Airlines said in October it expects a profit this year of NT$1.37 billion (US$40 million), a reduction from a previous target of NT$3 billion because of a slump in demand after the terrorist attacks in the US.
China Airlines' shares dropped NT$0.20, or 1.5 percent, to NT$13.15. Delta shares fell 3.6 percent to US$29.75 in the US yesterday.
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