LIBERALISATION of air routes between Taiwan, Hong Kong and Macau could increase passenger traffic 40 per cent, Taiwanese aviation authorities believe.

The pacts, with the Taipei Airlines Association, Cathay Pacific and Air Macau, will straddle the change of sovereignty in Hong Kong in 1997 and in Macau in 1999, and will be examined by the relevant Joint Liaison Groups for approval.

Passengers from Taiwan will be able to travel to the mainland via Macau without changing planes. Macau's casinos are expected to lure Taiwanese gamblers.