A charter company of China Airlines (CAL,
The project, based on the build-operate-transfer (BOT) model, would allow the airline to operate for 50 years at the site, including the three years needed for construction, CAL said in a statement.
The center would become CAL's headquarters and house its staff training center. The site will also house a four-star transit hotel with 360 rooms.
CAl said it would hire an international hotel chain to manage the hotel.
The company said construction is expected to cost NT$4.35 billion (US$132.2 million).
The CAA has been searching for a proper candidate for its transit hotel at the Taoyuan airport since its contract with the previous operator expired two years ago.
CAL, Sheraton Hotels and a duty-free shop operator formed a team to bid for the project in March and ended up being the sole candidate. Six months later, however, Sheraton and the duty-free shop operator pulled out of the joint project.
CAL will have to pay the CAA an annual rent of at least NT$25 million, although inflation could trigger a rent increase.
The CAA will also collect a royalty percentage based on amount of revenue.
The airline will demolish the existing hotel and nearby facilities and construct three buildings on the 4.7-hectare land.
CAL said in a statement that the project review process was in the final stages, with three construction companies still in the running. It refused to disclose their names.
The airline said construction could begin as early as the end of the year, and is scheduled to be finished in 2009, when CAL will celebrate its 50th anniversary.
The CAA has hired a consulting firm to evaluate the viability of the BOT project.
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