Management of Taoyuan Airport to be Transferred to State-owned Company


   

The Legislative Yuan has passed the International Air Park Development Act (tentative translation) to facilitate the development of Taoyuan International Airport into the first air park in Taiwan. The Act calls for the establishment of a state-owned airport management company which will be developed, operated, and managed under the supervision of the Ministry of Transportation and Communications (MOTC). The Act also reduces the requirement for hiring indigenous people from 5% to 3% for enterprises in the air park’s free trade zone; to protect the job rights of local citizens, however, free trade zone service companies will not be allowed to hire foreign or mainland Chinese workers.

The MOTC notes that the Taoyuan Airport air park will be divided into three zones: a special airport zone, an international air park, and an air city. Its management will be modeled on that of the science parks, with the state-owned airport company carrying out construction, operation, and management. The company’s rights and obligations will be worked out in the future.

At the same time, the MOTC reported that the government will, as quickly as possible, formulate a “Draft Bill for the Establishment of an International Air Park Company,” laying out development and operating models and standards. After the company is established, the lease and licensing fees it pays will go into a civil aviation operating fund; 18% of the profit that it generates minus surplus reserves will be given to local governments, and the remainder of its profit will also be paid into the civil aviation enterprise operating fund.

The International Air Park Development Act was originally known as the Taoyuan International Airport Zone Development Act. Its name was changed to leave flexibility for other airports (such as QingQuangang and Xiaogang) to develop air cities.

News Lexicon

Special airport zone: The airport area that has been designated by the authorities for the provision of aviation transportation services.

International air park: The special airport zone together with a free trade zone within or adjacent to the special airport zone.

Air city: The area around the international air park containing businesses, manufacturing and processing, convention and exhibition facilities, recreational facilities, and housing that derive from airport activities.


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