The rate cuts were the result of customer complaints of unreasonably high rates, legislators’ criticism and pressure from the Civil Aeronautics Administration (CAA) . They were also seen as a far-sighted scheme anticipating increased need for direct cross-strait flights and soaring demands to and from Shanghai in particular as the 2010 World Expo will be kicking off in May.
United Daily News reported that one day after CAA Director-General Lee Long-wen attacked airline carriers for hoarding seats and tickets and told them to "show some conscience. " China Airlines took the initiative in reducing the rates for economy seat tickets.
The deepest price-cut to date was nevertheless considered by many Taiwanese citizens maintaining business operations in China who fly across the strait frequently as "belated justice." "One said ,"Not as sweet as expected, but it serves as a good start anyway," some said.
Focus Taiwan reported EVA Airways and Trans Asia Airways were forced to meet China Airline’s lower rates. The rate cuts will result in financial losses for the Taiwanese carriers in the short run, but are also seen to increase their bargaining chances for increased business.
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