Taiwan to lower threshold for start-ups, adjusts airport landing fees from Jul-2013

Taiwan Ministry of Transportation and Communications amended its Civil Air Transport Management Regulation on 26-Jun-2013, which will see the amount of operational capital required to establish an airline lowered from TWD10,000 million (USD333 million) to TWD6000 million (USD200 million), effective Jul-2013 at the earliest. As reported by CNA and China Post, the ministry said passenger and cargo airlines with annual profit of more than TWD6000 million (USD200 million) can apply to establish an LCC in Taiwan, adding no Taiwanese airlines have submitted applications so far. China Airlines previously stated it will not be affected by the amendment and that it has established a project group to evaluate the possibility of establishing an LCC while EVA Air maintains it has no plans establish an LCC but it will expand the price ranges of fares between peak and non-peak travel seasons. The ministry also announced that to balance the utilisation of the nation's airports and reduce congestion at Taipei Taoyuan and Taipei Songshan airports, landing fees at Taichung and Kaohsiung airports will be reduced by 10% from Jul-2013 while landing fees at Taipei Songshan will increase by 30%. Airlines that add 30 flights to Taichung or Kaohsiung will also receive a 50% discount in landing fees at the respective airports, increasing to 70% discount if 30 to 70 flights are added and free of charge if more than 70 flights are added. A 50% discount in landing fees will also be introduced at the nation's other airports including Hualien, Taitung, Kinmen, Makung, Chiayi and Tainan. Any additional flights added at the smaller airports will see landing fees exempt.