Hong Kong Dragon Airlines (Dragonair) and Taiwanese carrier EVA Airways say they have agreed to endorse each other's tickets on the Hong Kong- Taipei route in an attempt to make their services more competitive. The two companies said yesterday that they had struck an endorsement waiver agreement, which would effectively allow passengers of either airline to switch between the eight daily flights they offer between Hong Kong and Taipei. They said the agreement would offer their customers better service and enable the airlines to better compete with Cathay Pacific Airways and China Airlines, the two dominant carriers on the route. While Dragonair was granted rights to Taipei for the first time last month, it can operate only three services a day until 2004 when it will gain rights to an additional daily service. By comparison, Cathay operates 14 daily services to Taipei, while China Airlines has 11, not including the daily service secured by its wholly owned subsidiary Mandarin Airlines. Cathay and China Airlines have a similar ticket endorsement agreement. Under the Dragonair-EVA agreement, if a passenger is booked on a Dragonair flight bound for Taipei but misses it, the passenger has the choice of boarding the next scheduled flight with the same ticket, even if it is one operated by EVA. But unlike other passenger-sharing deals - such as interlining or code-sharing - the revenue gained under such an agreement is not shared between the airlines. Instead, it goes to the airline that actually carries the passenger. As such, it is not expected to be a significant revenue booster for either airline, although it will help Dragonair and EVA attract more profitable business travellers, who demand extra flexibility in their travelling schedules. No other details of the agreement were available. Meanwhile, Dragonair launched its direct cargo service to Taipei yesterday with the introduction of a daily Boeing 747-300 freighter flight. Dragonair said last week that services to Taiwan should eventually account for 40 per cent of revenues, up from the present quarter.