Relations between the two sides have improved dramatically this year, following the election in March of Ma Ying-jeou as Taiwan's president. Top officials from both sides met in Beijing in June for the first direct dialogue between the two parties in 10 years.

Those talks led to the launching of the regular direct flights between China and the island, as well as other measures to boost tourism. Direct flights have already been running for the past few months, but only at weekends, and their ramping up to daily services has been seen as a confirmation that relations remain on the right track.

In another significant step, Chinese President Hu Jintao met with Lien Chan, former Taiwan premier and honorary chairman of the island's ruling Kuomintang party, on the sidelines of an APEC summit in Peru last month.

It was the highest-level official meeting to take place overseas between the rivals since their split in 1949. Taiwan's transportation ministry estimates local airlines and passengers will save around three billion Taiwan dollars (90 million US) a year, and shipping companies around half that, with the direct links.

Shanghai Airlines chairman Zhou Chi was also upbeat at the send-off for his carrier's first flight on Monday.

"I think this is a market with huge growth potential given there are millions of Taiwanese here," Zhou told reporters.