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Taiwan Transport Ministry approves proposal to increase domestic airfares

5-Aug-2013 11:09 AM

Taiwan Ministry of Transportation and Communication approved (01-Aug-2013) a proposal to increase domestic airfares for the first time since 2005 by between 4% and 21%, on the condition that airlines cut fares for off-peak hours, effective 01-Jan-2014 (CNA, 03-Aug-2013). The price increase will only reflect increases in fuel prices with the ministry stating it has communicated with airlines regarding the need to minimise the price increases as much as possible. The ministry also said it will introduce other complementary measures including subsidising residents of outlying islands in purchasing homebound flights as well as reducing aircraft landing fees. Meanwhile, Civil Aeronautics Administration air transport division director Chu Kuan-wen said the CAA will continue to subsidise registered residents of outlying islands in purchasing homebound tickets using the Civil Aviation Operation Fund, which will pay for the differential when ticket prices increase. The government invests around TWD640 million (USD21.3 million) p/a to fund ticket purchases by residents of outlying islands, with around 1.2 million residents receiving such funding in 2012. Far Eastern Air Transport and TransAsia Airways separately expressed (02-Aug-2013) their support for the move, including providing discount fares during off-peak travel season. [more - original PR - Taiwan Ministry of Transportation and Communications] [more - original PR - Far Eastern Air Transport] [more - original PR - TransAsia Airways]