A Taiwanese authority has told the media that because of the September 11th attack that hits airline industry so hard, plus Taiwanese airliners are having difficult time for domestic service, they are expecting the first airline merger in the coming months.
Meanwhile, it also points out that there will be 3 possible merger/codeshare plans. All Taiwanese domestic flight will get green light for code-sharing, in order to lower the airline's expense.
In the recent CAA's census, 6 fixed-wing airline (China Airlines, EVA Airways, Far Eastern Air Transport, Transasia Airways, UNI Airways, Mandarin Airlines) from Taiwan's domestic operation has reached the point where it "needs assistance from CAA".
Because there are only 6 airlines, and due to the share control, industry analysist points out that the speed of merger for China Airlines and Mandarin as well as EVA and UNI will be "faster than expected", due to China Airlines and EVA both have more than 80% of shares in their individual subsidiary.