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Taiwans China Airlines says no decision yet on Taipei-HK flight frequency

Analysis

Taipei (XFN-ASIA) - China Airlines (2610.TW) said it has yet to decide whether to reduce the frequency of its Taipei-Hong Kong service. The South China Morning Post, citing the general manager of the Taiwan carrier's Hong Kong branch, reported today that China Air plans to eliminate about 20 pct of its scheduled Hong Kong-Taiwan passenger flights from July 4, when regular weekend charter flights between Taiwan and mainland China are expected to begin.

"It is too early to say what we will do on the Hong Kong flights if limits governing cross-strait air links are eased," said a China Airlines official in response to the report. "We have to take into account government deregulation details and the market situation before making any decision."

Taiwan's leading airline and its wholly owned Mandarin Airlines now fly a combined 121 flights between Taiwan and Hong Kong a week, the official added. Taiwan's new president, Ma Ying-jeou, who is to take office tomorrow, has pledged to launch weekend cross-strait charter flights on July 4 and start daily charter services by end of this year. China Airlines ended today's trade 0.40 twd or 2.45 pct higher at 16.75.

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