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Eric Ng

Air Macau plans to start the first all-cargo service between China and Taipei next month.

The Macau airline's move is expected to significantly increase competition on Cathay Pacific Airways' and Dragonair's services to Taiwan.

Shenzhen Airport Group is in the final stages of negotiations with Air Macau on the launch of an all-freight service between Shenzhen and Taipei via Macau starting from next month, Xinhua reported yesterday.

This will be the first all-cargo Taiwan route for Air Macau, owned by Beijing-controlled China National Aviation Corp Group (CNAC Group).

Early last month, CNAC Group agreed to sell a 51 per cent stake in Air Macau to its Hong Kong-listed subsidiary, China National Aviation. The deal is expected to be completed later this month.

Air Macau was planning to operate two daily flights - one morning and one afternoon - on a leased Boeing 727 passenger aircraft modified for freight use between Shenzhen and Taipei with a brief layover in Macau, the report said.

According to sources, the new service will change flight codes after landing at Macau, a practice followed by Air Macau's Taiwan passenger flights.

However, a change in flight code does not mean a change of aircraft. Cargo and passengers will be allowed to carry on to Taiwan uninterrupted after the mandatory touchdown at the Macau airport.

The service is expected to pose a threat to Cathay Pacific and Dragonair.

Dragonair moves goods and passengers between the mainland and Hong Kong, passing them on to Cathay which operates services between Hong Kong and Taiwan.

However, this double-handling is time-consuming and adds significantly to operating costs.

Dragonair, in which CNAC is a controlling shareholder, also flies a combined passenger and cargo service between the mainland and Kaohsiung in southern Taiwan, again with a layover in Hong Kong to change flight codes.

Taiwanese carriers operating Taiwan-Hong Kong cargo flights also may be affected.

Shenzhen Airport general manager Chen Hong was quoted by Xinhua as saying that the cost of moving goods between Shenzhen and Taiwan through Macau would be substantially lower than through Hong Kong.

However, Mr Chen played down the threat to Hong Kong as a traffic hub, as the market's fast growth would lessen the impact on Chek Lap Kok.

According to Macau airport officials, Air Macau has yet to complete an application with the civil aviation authorities for the service.

It is understood a standard Boeing 727 will not pass noise pollution standards at the airport and will need to be outfitted with a hush kit.

Air Macau, which started business in 1995, operates more than 150 flights each week between Macau and 13 Asian destinations, including nine mainland cities, Taipei, Kaohsiung, Bangkok and Manila.

While it transported 20,753 tonnes of cargo and mail last year, the freight has been delivered only on mixed passenger and cargo flights.



Shenzhen-Taipei cargo services for Air Macau