· Area of Law： Traffic and Transport

· Level of Authority： Group Provisions

· Date issued：11-04-2008

· Effective Date：12-15-2008

· Status： Effective

· Issuing Authority： Association for Relations Across the Taiwan Straits

Cross-strait Air Transport Agreement
(November 4, 2008)
To enhance the development of the cross-strait economic and trade relations and facilitate the contact and communication of the people on both sides of the strait, upon equal negotiations, the Association for Relations across the Taiwan Strait (ARATS) and the Straits Exchange Foundation (SEF) have reached an agreement on direct flights across the strait as follows:
I. Flight Routes
Both parties agreed to open a direct two-way flight route in the northern line across the Taiwan Strait and set up a direct handover procedure between the air traffic control departments on either side across the strait.
Both parties agreed to continue consultations on opening a direct two-way flight route in the southern line across the strait, as well as other more convenient flight routes.
II. Carriers
Both parties agreed that the airline companies funded by and registered on either side of the strait may engage in direct cross-strait air transport of passengers and cargoes upon approval.
III. Direct Flight Points
Both parties agreed to open suitable flight points for direct air transport of passengers and cargoes to each other according to the market demand.
IV. Regular Flights
Both parties agreed to make the ultimate possible efforts to make arrangements on regular flights within six months after the implementation of this Agreement.
V. Cargo Charter Flights
Both parties agreed to open direct charter flights for cross-strait transport of cargoes.
VI. Passenger Charter Flights
Both parties agreed to increase the charter flight points and number of flights on the basis of cross-strait weekend charter flights and adjust them to regularized arrangements.
VII. Private Jet Charter
Both parties agreed to launch the private jet charter service for non-profit purposes according to the actual needs.
VIII. Applicable Provisions
Both parties agreed that issues relevant to charter flights for passenger and cargo transport shall be governed by the SEF-ARATS Minutes of Talks on Cross-strait Charter Flights.
IX. Liaison Bodies
1. Communications on matters agreed-to in this Agreement shall be handled by and between the Cross-Strait Aviation Transport Exchange Council and the Taipei Airlines Association. Both sides may designate other institutions for such purposes upon mutual consent if necessary.
2. Communications regarding other matters relating to this Agreement shall be handled by the ARATS and SEF.
X. Fulfillment of and Modification to this Agreement
1. Both parties shall abide by this Agreement. The Annex to this Agreement has equal legal force as this Agreement.
2. Any modification to this Agreement shall be made upon the consent of both parties and confirmed by both parties in written form.
XI. Dispute Settlement
For any dispute arising from the application of this Agreement, both parties shall settle it through negotiations as soon as possible.
XII. Other Issues
Issues not stipulated in this Agreement shall be negotiated separately by both parties in an appropriate way.
XIII. Effectiveness
This Agreement shall come into force within forty days from the day when it is signed by both parties.
This Agreement was signed on the fourth day of November in quadruplicate with each party holding two.
Annex: Arrangements on Cross-Strait Flight Routes and Passenger and Cargo Charter Flights
Association for Relations across the Taiwan Strait Straits Exchange Foundation
President Chen Yunlin President Chiang Pin-kung
Annex:
Arrangements on Cross-Strait Flight Routes and Passenger and Cargo Charter Flights
Under Articles 1, 3, 5 and 6 of this Agreement, we make the following specific arrangements upon negotiation:
I. Direct Flight Route
Both parties agreed that the air traffic control departments on both sides of the Taiwan Strait shall, in an appropriate way, conduct liaison and make specific arrangements for establishing a direct flight route in the northern line between Taipei and Shanghai flight information regions and the air traffic control handover procedure.
The direct flight route in the northern line shall be: from B576 point BERBA (N27°04′41〞E123°00′00〞) to Dongshan via air traffic control handover point A agreed-on by both Parties (N27°26′20〞E122°25′19〞), for use in both directions.
II. Cargo Charter Flights
1. Carriers: both parties agreed that each party may designate two or three airline companies to operate the cargo charter flight business.
2. Flight points: the mainland agreed to open Shanghai (Pudong) and Guangzhou, while Taiwan agreed to open Taoyuan and Kaohsiung (Sioagang) as cargo charter flight points.
3. Number of flights: both parties agreed that they shall operate 60 round-trip flights per month, with each party operating 30 round-trip flights. Of these, 15 return flights to and from each of Shanghai (Pudong) and Guangzhou shall be made by each party per month. In the peak months of cargo transport of October and November, each party may operate an additional 15 return-trip flights.
4. Commercial arrangements: both parties' designated airline companies shall adopt a commercial cooperation mode of operation, and implement this mode after filing it with the air traffic control departments of both parties for record.
III. Passenger Charter Flights
1. Flight points: the mainland agreed to increase 16 flight points, i.e. Chengdu, Chongqing, Hangzhou, Dalian, Guilin, Shenzhen, Wuhan, Fuzhou, Qingdao, Changsha, Haikou, Kunming, Xi'an, Shenyang, Tianjin and Zhengzhou as passenger charter flight points in addition to the currently existing five weekend charter flight points, i.e. Beijing, Shanghai (Pudong), Guangzhou, Xiamen and Nanjing. Taiwan agreed to open the 8 flight points, i.e. Taoyuan, Kaohsiung (Sioagang), Taichung (Chingchuangkang), Taipei (Songshan), Penghu (Magong), Hualien, Kinmen and Taitung already opened as passenger charter flight points.
2. Number of flights: both parties agreed that they shall operate at most 108 round-trip flights seven days a week with each party operating at most 54 round-trip flights. Of these, at most 20 round-trip flights from Taiwan to Shanghai (Pudong) shall be made. Increase or decrease of flights is possible in the future according to the market demand.
3. Other issues: after the regularized arrangements of passenger charter flights are realized, the previously determined charter flight arrangements for holidays shall not be used any more. Temporary increase of charter flights is allowed during the Spring Festival if so needed.
4. Transport of postal matters: both parties agreed to transport each other's postal matters via passenger charter flights.