CAA to raise foreign investment cap on air-carrier industry

This article was published by the Taiwan Headlines on August 31, 2006. It reports that the Civil Aeronautics Administration (CAA) under the Ministry of Transportation and Communications (MOTC) recently passed a draft to revise the present Civil Aeronautics Law. The aim is to deregulate Taiwan's air-carrier operations and help domestic air carriers to east the impact from the imminent start-up of the high-speed railway.

The CAA will raise the percentage of foreign investment in domestic air carriers to 49 percent, from the present one-third. The increased foreign investment in Taiwan's domestic airlines is expected to help local carriers access needed financing under the prerequisite of allowing direct-flights across the Taiwan Strait.

Meanwhile, the CAA will also allow the private sector to manage air terminals and deregulate small-sized business charter flights. In terms of business charter flights, airlines will be allowed to fly 19-seat and smaller planes on personalized charter flights.

Finally, the CAA defines private aircrafts as those purchased by private enterprises for personal-use only.

The draft revision will soon be sent to the MOTC for review and then to the Legislative Yuan for final approval.