The Taipei Airlines Association (
"Not only China-bound flights are negatively impacted, domestic travelers are also shying away from flights," Solo Su (
The disease has seriously threatened survival of local air carriers, he said.
PHOTO: AFP
On behalf of six local airlines, the association urged the government to postpone the monthly collection of charges at domestic airports, including landing fees, maintenance fees, land rental and noise fees, until August.
Chinese-language media reported that the Ministry of Transportation and Communications approved the postponement last night, citing Lee Lung-wen (
Lee also was quoted as saying that all airlines will enjoy a reduction in landing fees which will range between 15 percent and 50 percent this year.
The association also urged the government to consider cutting the fees at CKS International Airport, which the association said are around 30-percent higher than most airports in Southeast Asia.
"In addition to a reduction in the number of flights, these measures will greatly help to cut costs," Su said.
The association also asked the government to cut the 5 percent value-added tax on air tickets, as well as taxes on jet fuel, and offer low-interest loans for a period of up to two years.
Su said that the association will soon hold detailed discussions with airlines to finalize any changes.
In response to the petition, the Ministry of Transportation and Communications said that more talks need to be conducted before the government can make the adjustments.
But an aviation official who refused to be identified, said that following fallout from the Sept. 11 attacks in the US, the government cut airport charges, including landing fees, by 25 percent to 30 percent last year and agreed to maintain the same rates this year.
"The relief measures drained government coffers of over NT$200 million last year," he said.
The official also said the call for preferential loans is not needed since cash flow at most local airlines is normal.
"Airlines profited last year and their passenger capacity may have been negatively impacted, but the cargo business is growing," he said.
International airlines that fly Hong Kong endorsed the association's petition.
"EVA looks forward to the government's positive response to the petition," EVA Airways Corp's (
He said that the government should make lowering landing fees a top priority.
China Airlines Co (
Nieh and Han both said that their companies' financial situations are still manageable and that preferential loans were not needed.
To compete for passengers, EVA yesterday decided to include medical insurance along with its airfares until July 31. The deal will provide a maximum coverage of NT$200,000, with a daily compensation of NT$2,000, to passengers if they contract SARS while on the carrier's flights.
An industry watcher said that international and local airlines have been suffering losses since April and are in need of governmental help.
Wang Deng-cherng (
"With current capacity at between 30 percent to 50 percent, they are losing big," Wang said.
The air-cargo business in Asia hasn't risen since the beginning of the US-led invasion of Iraqi.
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