Taipei - Hong Kong and Macau, which have served as the transit points for China-bound Taiwan passengers for six decades, will lose that role when Taiwan launches regular air links with China in June, a Taiwan newspaper reported Monday.

Taiwan and China are expected to discuss regular flights in March and implement them in June, according to the Economic Daily News.

Under the plan, Taiwan passengers would fly directly to China on Taiwanese or Chinese airlines instead of changing planes in Hong Kong or Macau as they had under Taipei's ban on air links with China.

According to the Transport Ministry, 3.77 million Taiwanese flew to Hong Kong and Macau in 2008. About 2.64 million, or 70 per cent, went on to China.

Acccording to Airport Authority Hong Kong (AA), the Hong Kong International Airport's cargo volume fell 18.7 per cent in November 2008, 28.2 per cent in December 2008 and 28.9 per cent in January 2009 year on year.

The January decline was the biggest drop since the Hong Kong airport opened in July 1998 to replace the outdated Kai Tak Airport.

Taiwan banned direct air, sea and trade links with China since 1949 when the Republic of China government lost the Chinese Civil War and fled to Taiwan to set up its government-in-exile.

As cross-strait tensions began to ease, Taiwan launched holiday charter flights with China in 2003 to allow Taiwan investors - now numbering about half a million - to return home for the Chinese New Year holidays.

The thaw gained speed after Ma Ying-jeou, from the China-friendly Chinese Nationalist Party, became president in May 2008.

Taiwan and China expanded the holiday charter flights to weekend charter flights on July 4 and turned them into daily charter flights on December 15, 2008. Taiwan and China also launched shipping links on December 15, 2008. (dpa)