Air travel between the mainland and Taiwan has developed gradually, starting with charter flights during the Spring Festival or the Chinese lunar New Year. In January 2003, the mainland and Taiwan reached an agreement on the Spring Festival charter flights, making it easier for Taiwan businesspeople and their families to travel back home during the Spring Festival. Only Taiwan carriers were allowed to operate the flights and the planes only transported passengers from the mainland to Taiwan, with required stops in Macao or Hong Kong. The first Taiwan plane to visit the mainland since 1949 touched down at an airport in Guangzhou in 2003. In 2005, mainland carriers were also allowed to operate the Spring Festival charter flights, and a mainland plane landed in Taiwan for the first time since 1949. Planes from either side were no longer required to stop in Hong Kong or Macao, and Taiwan businesspeople could fly either way. In 2006, the charter plane operation was expanded to include all Taiwan residents with valid travel permits. The following year, 12 airlines on the mainland and in Taiwan operated 96 round-trip flights, transporting 34,303 Taiwan residents, while in 2008, 94 round-trip flights transported 31,442.

The next step came in June 2006, when the mainland and Taiwan agreed to operate charter flights during other traditional Chinese festivals, such as the Tomb-Sweeping Festival, the Dragon Boat Festival and the Mid-Autumn Festival. On September 29, 2006, the first Mid-Autumn Festival charter flight was launched, and 12 carriers operating 48 flights transported nearly 10,000 Taiwan residents. A maiden Tomb-Sweeping Festival charter flight took off on March 30, 2007, followed by the first Dragon Boat Festival charter flight on June 15. The mainland is also open to applications for special charter flights for medical emergencies, humanitarian and project-related cargo delivery purposes.

The latest step was establishing weekend direct charter flights. In June 2008, ARATS and SEF resumed talks and signed an agreement on cross-straits charter flights. Weekend charter service was officially launched on July 4. The flights operate every Friday through Monday and are open to residents on both sides of the Straits. Passengers can board the planes from five cities on the mainland-Beijing, Shanghai, Guangzhou, Xiamen and Nanjing-and eight terminals in Taiwan, including Taipei Taoyuan, Taipei Songshan, Kaohsiung, Taichung, Penghu, Hualien, Kinmen and Taitung.

On September 7, Wang Yi, Minister of the State Council Taiwan Affairs Office, announced further measures to ease cross-straits exchanges. Wang said Chinese mainland residents with valid travel permit to travel between the mainland and Taiwan would be able to travel through the islands of Penghu, Kinmen and Matsu. In addition, each holder of the Mainland Travel Permit for Taiwan Residents (MTP) will acquire a unique lifetime number designed to help Taiwan residents go through relevant procedures on the mainland.

Far-reaching significance

Progress in the "three links," such as weekend charter flights and the expansion of the "three mini links," is expected to have far-reaching impact on cross-straits relations.

First, it will promote the normalization of cross-straits relations. The "three links" will lower the cost of cross-straits exchanges, improve economic efficiency, facilitate cross-straits exchanges and talks, enhance mutual understanding and friendship, reduce the antagonism that some people in Taiwan feel against the mainland and deepen the sense of commonness felt by residents on both sides of the Taiwan Straits.

Second, it will boost economic development both on the mainland and in Taiwan. Direct transport will drive forward cross-straits economic and trade relations, boost industrial production and improve the trade and investment environment and the growth potential of Taiwan. Taiwan's tourism and airline industries will be direct beneficiaries. Tourism is a major industry in Taiwan. Nevertheless, recent years have seen a sluggish market, leaving many tourism companies in the red. Industry analysts estimate that the weekend charter flights and Taiwan's new openness to mainland tourists will generate direct tourism income of at least 60 billion New Taiwan dollars ($1.87 billion) and indirect tourism income of over 150 billion New Taiwan dollars ($4.66 billion). The catering, retail, transportation, communications and finance industries will be spurred. Industry analysts estimate that these new measures will contribute to a profit growth of 1 to 3 percent initially, with even larger profit growth in the long run.

To reinforce the economic impact of these new cross-straits policies, several measures should be considered. First, increase the number of carriers and airports operating weekend charter flights and further simplify the application procedures for mainland residents visiting Taiwan. According to statistics, the average daily number of mainland tourists to Taiwan is no more than 300, which falls significantly short of the target of 3,000.

Second, the flights should be allowed to take shorter and more direct routes. Although weekend charter flights no longer have to stop over in a third place other than the mainland and Taiwan, they still have to detour above Hong Kong, as Taiwan insists that there should be an air early-warning buffer zone. Taking more direct routes will cut flight time and costs. Mao Zhiguo, Taiwan's official in charge of transportation, said that they had come up with new routes, and that if no security threat were found, the routes would be submitted to ARATS and SEF for discussion.

Third, expand direct marine transportation. At present, marine transportation not included in the "three mini links" has to stop at Liouciou Island, which increases costs. Urged by marine transportation operators on both sides of the Taiwan Straits, Taiwan plans to open seven marine ports to direct marine transportation, while Li Fengqi, Deputy Executive Councilor of ARATS, said on September 9 that direct marine transportation was on the agenda and the mainland plans to open at least 15 ports.

The author is with the Institute of Taiwan Studies, Chinese Academy of Social Sciences