Through chartered services, airlines across the Strait were testing the demand and collecting information for future regular scheduled flights, said Lo. "The mainland market is huge, but so far Taiwan airlines do not have a full picture. If Taiwan opens its tourism market fully to mainland tourists, they will have more confidence."

He expected a good business future for weekend charter flights due to lower costs and shorter times and said they would affect passenger flow through Hong Kong.

About 80 percent of passengers between Taiwan and the mainland transfer in Hong Kong, but the number might reduce by half due to the weekend services, he said.

However, Hong Kong would still have the advantage of operating flights linking many more mainland cities than terminals for weekend chartered service, he said.

Negotiations on chartered freight flights will be held within three months after the weekend services start, according to the document.

The two sides agreed that airlines will swap representative offices. Taiwan promised to allow mainland airline companies to set up offices in the island within six months. Mainland companies are allowed to send staff to prepare for the founding of offices.

Taiwan-based China Airlines has set up six offices in the mainland, according to its official website.

Efforts would be made to simplify entry-exit and custom procedures for passengers and cargo, the document said, and the two sides will continue charter flights for festivals.

The two sides started chartered flight service for the Spring Festival, a major event for Chinese family reunions, in 2003 and since 2006, the service has been expanded to three other major Chinese festivals: the Qingming, or Tomb Sweeping, Festival; Dragon Boat Festival; and Mid-Autumn Festival.

The mainland-based Cross-Strait Aviation Transport Exchange Council and TAA were entrusted to discuss and implement details of the agreement, which will take effect from June 20.

(Xinhua News Agency June 13, 2008)