The Civil Aeronautics Administration (CAA) yesterday said that it would schedule another meeting at the end of this month to discuss whether some of the restrictions imposed on business entities wishing to form airlines are to be lifted.
Calls for an amendment to the regulations arose after former EVA Airways chairman Chang Kuo-wei (張國煒) announced plans to establish a new airline after he was removed from his post at EVA last year due to a family feud following the death of his father, Evergreen Group founder Chang Yung-fa (張榮發).
Although Chang has registered his new airline with the Ministry of Economic Affairs, he has yet to file an application to be a carrier with the CAA.
The problem is that the Regulations of Civil Air Transport Enterprises (民用航空運輸業管理規則) state that enterprises who are interested in forming an airline must have at least five years experience managing international transport or international trade businesses, and annual operational revenue must exceed NT$6 billion (US$196 million).
Although Chang has both the business experience and the ability to raise funds for a new airline, the regulations have made it difficult for him to find partners, as they must also have experience in international transport and trade.
The CAA convened a meeting in May to discuss the possibility of allowing individuals to establish airlines, following a resolution passed by the Legislative Yuan earlier this year, but the proposal was strongly opposed by existing carriers and some aviation experts. They accused the CAA of only changing the rules to benefit Chang.
The CAA dismissed the accusation, saying that it would not change the regulations for a specific individual. It further argued that a majority of the articles in the Regulations of Civil Air Transport Enterprise were conceived 20 years ago.
The most recent amendment occurred in 2013, when the agency lowered the required capital for an airline company from NT$10 billion to NT$6 billion so that low-cost carriers could enter the local market.
Other articles in the regulations need to be re-examined and changed as necessary, the CAA said.
The CAA said that other nations such as the US do not require businesses or individuals interested in starting an airline to have been in the international transport or trade business.
However, running an airline company requires more than just prior work experience, the CAA said, adding that it also requires financial backing and professional knowledge of the civil aviation industry.
Even if the restriction is lifted, there would be other requirements that have to be fulfilled before any business entity could become a carrier, the CAA said.
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