Taiwan's Eva Airways to start direct China flights

TAIPEI, Nov 14 (Reuters) - Eva Airways (2618.TW), Taiwan's second-biggest airline, said on Friday it would start daily direct flights to China next month amid Taiwan's warming ties with the mainland.

The move, part of an expanded flight agreement across the Taiwan Straits, would allow Eva Airways to fly to the Chinese cities of Shanghai, Hangzhou and Shenzhen, James Jeng, the company's president, told reporters at a briefing.

"We will maximise the benefits of these flights, and will be broadening our co-operation with Chinese airlines," he said.

The increased number of flights come after top officials from China and Taiwan signed deals earlier this month on daily direct flights, new cargo routes and food safety during Beijing's highest-level visit to its political rival in 60 years. [ID:nPEK274175]

Eva signed an agreement with China Eastern Airlines (600115.SS) (0670.HK) (CEA.N) in June to work more closely on ticketing and baggage handling issues.

All flights between Taiwan and China previously had to go through a third city, usually Hong Kong, as they did not have regular direct links since the end of the civil war in 1949, but relations have warmed since China-friendly President Ma Ying-jeou took office in May.

China considers self-ruled Taiwan to be part of its territory and has threatened to bring the island under its rule, by force if necessary.

Jeng also said Eva Airways would try to swing to profit in the fourth quarter amid falling oil prices and a bottoming-out of the global economy.

The airline, along with other rivals worldwide, has been badly hit by high oil prices, reporting a T$1.87 billion ($57 million) loss last year and a T$10.47 billion loss in the first three quarters of 2008.

At midday trading, shares of Eva Airway rose 2.3 percent, beating the broader market's 1 percent gain. (US$1=T$33) (Reporting by Lin Miao-jung; Writing by Kelvin Soh; Editing by Jonathan Hopfner)