Taiwan will allow its airlines to seek permission from China to use its airspace to reduce flying time and cut soaring fuel costs, its premier said, a move hailed as a further sign of easing tensions.
Premier Frank Hsieh also renewed a call for talks with Beijing to start direct charter flights between Taiwan and Mainland China, rivals since a civil war ended in 1949.
"We agree to discuss cargo and passenger charter flights as well as holiday or other special charters so we can make arrangements as soon as possible," Hsieh told a weekly cabinet meeting.
Taipei has previously said it wanted to talk about direct air cargo charters in the first stage.
China welcomed the call for new charter flight talks, the official Xinhua news agency said in a brief report, quoting an unnamed spokesman with the Cabinet-level Taiwan Affairs Office.
"We have noticed the remarks of officials with the Taiwan authorities regarding the cross-Strait passenger and cargo charter flights. We welcome such remarks," the official said.
There was no mention whether Taiwanese airlines would be permitted to use mainland air space, however.
Beijing views self-ruled Taiwan as part of Chinese territory to be brought back to the fold, by force if necessary.
Taiwan has so far banned its carriers from flying over mainland China due to security concerns.
However, Taiwan's China Airlines and EVA Airways were permitted to fly through Chinese airspace during the US-Iraq war in 2003 rather than through the Middle East because of safety considerations.
"Allowing Taiwan aircraft to fly through Chinese airspace without detours will help save flying time and costs and increase the competitiveness of the airline industry," Hsieh said.
Crude oil topped $62 a barrel on supply worries recently, testing record levels set earlier.
EVA Airways said using Chinese airspace could save up to T$200 million (US$6.3 million) in jet fuel costs a year and shorten flying time to Europe by at least one hour.
"We welcome the move," an EVA spokeswoman said.
"The announcement fuels hopes for better relations ahead. We are encouraged by the possibility of how relations between the two sides will evolve in the future," said Collin Shih Cathay Securities Investment Consulting, pointing to direct air links.
Premier Hsieh said that Taiwan was likely to expand direct shipping links between its offshore islands and China next month.
Despite often tense political ties, Taiwan investors are estimated to have poured over $100 billion into China since the late 1980s, lured by lower costs and a common language.
Businesses have clamored for Taipei to allow full-blown air and shipping links to cut transportation costs. Currently, travelers and cargo must go through Hong Kong or a third country.
China and Taiwan exchanged special non-stop charter flights for the first time in over five decades during the Lunar New Year Festival in January and February, a move that many business people hoped would pave the way for permanent direct air links. (Reuters)
