Report by : Gan Yung Chyan
/ KUCINTA SETIA
Distributed to All Press & Travel Professionals
In an unexpected move, Far Eastern Air Transport (FAT), which began scheduled flights from Kaohsiung to Macau on 1 December 2016, has proposed to the bank creditors group of TransAsia Airways to absorb TransAsia debts, take over TransAsia's fleet of 7 ATR72-600 and 12 Airbus A321-200 and rename it as Far Eastern United Airlines (远东联合航空公司, FEUA). FAT's Chief Operating Officer Zeng Jin Chi revealed this to the local civil aviation media yesterday and said FAT has discussed with TransAsia management and its bank creditors on these matters.
TransAsia Airways owes its bank creditors 70 billion Taiwan New Dollars and an aircraft leasing firm 38 billion Taiwan New Dollars for 2 long-range Airbus A330 aircraft lease.
Zeng Jin Chi said FAT will be able to shoulder TransAsia's debt burden of 70 billion New Taiwan Dollars as it prepares to fork out 20 billion New Taiwan Dollars in returns to the bank creditors and the balance of 50 billion New Taiwan Dollars will be in financial loans from banking institutions. TransAsia on the other hand has to settle the A330 aircraft lease payment.
FAT next plans to apply to the civil aviation authority of Taiwan to take over TransAsia's flight rights on its domestic and international routes. It hopes to re-employ TransAsia's 1000 ex-employees to work at Far Eastern United Airlines. If the takeover is granted, both airlines will remain independent entities in the same Headquarters of FAT to reduce operation costs and increase productivity.
It is understood that China Airlines has also applied to the civil aviation authority of Taiwan to gain flight rights on TransAsia's routes.
If the takeover arrangement is approved, the whole takeover process may complete by February 2017. FAT hopes to inculcate flight safety culture in the new airline and resume TransAsia's flights on routes from Taipei Songshan to Hualien, Kinmen and Makung by March in the name of Far Eastern United Airlines before going on to resume international flights previously operated by TransAsia to the Philippines, Thailand, Japan, Singapore and China.
FAT, one of Taiwan's private airlines, was established in 1957 and has a turbulent history of flight operations. It operated services from Taipei Songshan and Kaohsiung to 5 regional cities, Siem Reap, South Korea and Palau. On and beyond 13 May 2008, it suspended flights due to over-investment, poor management in its defunct-Cambodian subsidiary Angkor Airways, breach of trust and bankruptcy. It resumed domestic flight services in Taiwan on 18 April 2011, emerged from bankruptcy restructuring on 16 October 2015 and it is operating profitable flights to destinations that include Chengdu, Fukuoka, Hohhot, Hefei, Kinmen, Kumamoto, Kaohsiung, Makung, Osaka, Niigata, Macau, Shijiazhuang, Taichung, Taoyuan, Songshan, Taiyuan, Tianjin, Yichang and Zhengzhou. It also operates charter flights from Makung to Hong Kong.
/ KUCINTA SETIA
Distributed to All Press & Travel Professionals
In an unexpected move, Far Eastern Air Transport (FAT), which began scheduled flights from Kaohsiung to Macau on 1 December 2016, has proposed to the bank creditors group of TransAsia Airways to absorb TransAsia debts, take over TransAsia's fleet of 7 ATR72-600 and 12 Airbus A321-200 and rename it as Far Eastern United Airlines (远东联合航空公司, FEUA). FAT's Chief Operating Officer Zeng Jin Chi revealed this to the local civil aviation media yesterday and said FAT has discussed with TransAsia management and its bank creditors on these matters.
TransAsia Airways owes its bank creditors 70 billion Taiwan New Dollars and an aircraft leasing firm 38 billion Taiwan New Dollars for 2 long-range Airbus A330 aircraft lease.
Zeng Jin Chi said FAT will be able to shoulder TransAsia's debt burden of 70 billion New Taiwan Dollars as it prepares to fork out 20 billion New Taiwan Dollars in returns to the bank creditors and the balance of 50 billion New Taiwan Dollars will be in financial loans from banking institutions. TransAsia on the other hand has to settle the A330 aircraft lease payment.
FAT next plans to apply to the civil aviation authority of Taiwan to take over TransAsia's flight rights on its domestic and international routes. It hopes to re-employ TransAsia's 1000 ex-employees to work at Far Eastern United Airlines. If the takeover is granted, both airlines will remain independent entities in the same Headquarters of FAT to reduce operation costs and increase productivity.
It is understood that China Airlines has also applied to the civil aviation authority of Taiwan to gain flight rights on TransAsia's routes.
If the takeover arrangement is approved, the whole takeover process may complete by February 2017. FAT hopes to inculcate flight safety culture in the new airline and resume TransAsia's flights on routes from Taipei Songshan to Hualien, Kinmen and Makung by March in the name of Far Eastern United Airlines before going on to resume international flights previously operated by TransAsia to the Philippines, Thailand, Japan, Singapore and China.
FAT, one of Taiwan's private airlines, was established in 1957 and has a turbulent history of flight operations. It operated services from Taipei Songshan and Kaohsiung to 5 regional cities, Siem Reap, South Korea and Palau. On and beyond 13 May 2008, it suspended flights due to over-investment, poor management in its defunct-Cambodian subsidiary Angkor Airways, breach of trust and bankruptcy. It resumed domestic flight services in Taiwan on 18 April 2011, emerged from bankruptcy restructuring on 16 October 2015 and it is operating profitable flights to destinations that include Chengdu, Fukuoka, Hohhot, Hefei, Kinmen, Kumamoto, Kaohsiung, Makung, Osaka, Niigata, Macau, Shijiazhuang, Taichung, Taoyuan, Songshan, Taiyuan, Tianjin, Yichang and Zhengzhou. It also operates charter flights from Makung to Hong Kong.
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