The Air Services Agreement between Hong Kong and Taiwan was signed in Hong Kong Friday and came into immediate effect, said a press release issued by the city's government.

According to the press released, the agreement was signed by representatives of the Hong Kong-Taiwan Economic and Cultural Co- operation and Promotion Council (ECCPC) and the Taiwan-Hong Kong Economic and Cultural Co-operation Council (THEC) who had been duly authorized by the relevant authorities of the two sides.

The agreement, being the first signed by the ECCPC and the THEC since their establishment, underlines the significance of air services between Hong Kong and Taiwan, and is a milestone in the two sides' civil aviation development.

According to the document, the two sides agreed to set no limits on the number of airlines to be designated by both sides so that new airlines can enter the market.

Moreover, the two sides agreed the passenger capacity will be increased by 28 flights per week for each side with immediate effect, and another seven flights per week for each side with effect from the 2012 International Air Transport Association (IATA) summer schedule, while the cargo capacity will be increased by 1, 100 tons per week for each side with immediate effect, and another 200 tons per week for each side with effect from the 2012 IATA summer schedule.

Also, special chartered flights are allowed between Hong Kong and points in Taiwan including Taichung, Hualien, Taitung, Magong, Kinmen and Tainan and each side may operate a maximum of 28 flights per week on each route mentioned above.

Welcoming the new agreement, Hong Kong Secretary for Transport and Housing, Eva Cheng, said that the agreement would provide room for the air services between Hong Kong and Taiwan to develop.

She added that the new agreement would not only benefit the development of the aviation, freight and tourism industries of the two places and strengthen Hong Kong's position as an international and regional aviation hub, but also promote further exchange and co-operation between Hong Kong and Taiwan, taking bilateral relations to a new level.

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