Eva Air to open Taipei-Mumbai passenger, US-China cargo routes

Deutsche Presse Agentur
Published: Monday August 28, 2006

Taipei- In order to cut losses caused by soaring fuel prices, Taiwan's Eva Airways has drawn up restructuring plans including the opening of a Taipei-Mumbai passenger route and a US- China cargo route, EVA Air president Chen Hsin-teh said Monday. EVA Air, Taiwan's second-largest airline, maintained steady growth in the first half of 2006, but profits were minimal due to surging fuel prices, forcing EVA Air to restructure its operations, Broadcasting Corp of China (BCC) quoted Chen as saying.

EVA plans to open a three-times-a-week regular Taipei-Mumbai flight in October, making it Taiwan's second air link with India after the island's largest airline China Airlines launched its Taipei-New Delhi flight in 2002, BCC quoted him as saying.

EVA also plans to suspend its regular passenger flight to Hawaii in September and use the aircraft to enforce its South-East Asian routes.

On the cargo front, Chen said EVA would start operating cargo flights between Shanghai and the US as a partner of Shanghai Airlines (SAL).

EVA took a 25-per-cent stake in SAL's cargo unit to expand the airline's international freight business.

"In the past, Shanghai air cargo had to be routed through Taipei, but in future, all the air cargo from Shanghai to the US west coast will be given to SAL and the shipment will be flown directly from Shanghai to the US west coast," Chen told BCC.

EVA also plans to collect Shanghai-bound cargo from Anchorage airport in Alaska and fly it directly to Shanghai, providing cheaper service to lure more cargo to South-East Asia, Chen said

Taiwan's airlines are struggling as the island is increasingly isolated and marginalized due to its five-decade ban on direct air link with China, the world's largest production base and consumer market.

But their lot is expected to improve at the year-end when Taipei allows Chinese tourist groups to visit the island.

Taiwan and China recently set up unofficial organizations to handle cross-Strait tourism. If the talks go smoothly, the first Chinese tour group may arrive in November or December.

As a goodwill gesture, Taiwan plans to allow China to attend Taiwan's annual international tourism fair, to be held in Taipei in November, the Tourism Bureau said on Monday.

© 2006 DPA - Deutsche Presse-Agenteur