Monday, Dec 23, 2002, By Annabel Lue / Taipei Times AIR TRANSPORTATION: Just as the carrier was getting ready to expand its routes and flight frequency, regulations state that such moves are not allowed for a year The economic fallout of Saturday's crash of a TransAsia Airways flight will be restricted route expansion for the next year. "As a result of the accident, TransAsia will not be permitted to increase its flight capacity for the next 12 months," Billy Chang, director of the Civil Aeronautics Administration said Saturday. Airlines are not permitted to increase flights for a period of one year after any air crash, according to government regulations. Airlines can only add new flights once an investigation by the Aviation Safety Council concludes that the company was not responsible for the accident, Chang said. The restriction doesn't apply to charter flights, he said. "TransAsia's charter-flight services between Taipei and Yangyang, South Korea, as well as services over the Lunar New Year holiday won't be affected," Chang said. South Korea recently agreed to allow TransAsia to fly a total of 38 charter flights between Taipei and South Yangyang between Dec. 22 and Feb. 18, according to Chan Hua-sheng, a spokeswoman at TransAsia. The company also plans to offer additional flights between Taipei and Macau during the Lunar New Year holiday, she said. An industry watcher that requested anonymity said that the crash is likely to impact TransAsia's bottom line. "TransAsia is banking on its Taipei to Macau service, and the company had hoped to be able to increase its flight numbers or capacity next year," he said. The company currently offers 52 flights between Taipei and Macau per week, Chan said. The average occupancy rate on that route is more than 80 percent or about 46 percent of the company's annual sales. With business activity across the Taiwan Strait continuing to grow, demand for the flights is constantly on the rise. TransAsia began offering services to Macau in 1995, and has increased its capacity by about 15 percent annually, Chan said. The company will now be forbidden from expanding that route as a result of Saturday's crash, the industry insider said. TransAsia's plans to expand to Vietnam may also be in jeopardy, he added. Additional flights may be be added on the lucrative route early next year, based on a new Taiwan-Vietnam flight service agreement. TransAsia was high on the list to be permitted to fly between Taipei and Hanoi, Vietnam -- a popular destination for foreign laborers and business travelers. China Airlines Co and EVA Airways Corp already offer flights between Taipei and Ho Chi Minh City, Vietnam. Trans Asia is not the first to see its business aspirations thwarted following aviation mishaps. China Airlines was not permitted to increase its flights to Hong Kong after an accident in May excluded it from benefiting from route expansions for one year. Greetings from Vienna, Manfred