THE Hongkong regional office of Swedish plane manufacturer Saab Aircraft has announced a US$20 million new order from Formosa Airlines of Taiwan. Formosa is to buy two Saab 340Bs to extend its network of high-frequency domestic air services this year. Delivery of the planes is scheduled for April and May. Formosa plans to use them on Taipei-Chaiyi, Taichung-Kaosiuing, Taichung-Hualien and Kaohsiung-Hualien runs. Taiwan is a highly competitive market, with eight domestic and international carriers, including China Airlines and Far Eastern Air Transport. Over the past couple of years, Formosa has undergone a substantial rationalisation and reorganisation. The airline moved out of its expensive Taipei office and relocated to the domestic terminal at Sung Shan Airport and dropped its intensely competitive and loss-making Taipei-Kaohsiung service. Formosa chairman K.H. Kao said: ''Now the future looks much brighter and we are confident that the Year of the Rooster will be a prosperous period for the airline.''