The board of TransAsia Airways resolved to dissolve the company, with Chairman Lin Ming-wei coming forward to explain.

By the MOOK Scenic Spots Family Editorial Department, compiled and reported

TransAsia Airways suspended operations today. In the morning, an interim board meeting was held to decide on dissolving the company and exiting Taiwan’s aviation market. Chairman Lin Ming-wei held a press conference at 2 p.m. to provide an explanation. He also sent a letter to all TransAsia employees expressing apologies.

It is understood that TransAsia Airways’ losses continued to widen in the first three quarters, losing half of its equity in two years, burning NT$10 million per day in operations. With current passenger load factor below 50%, the airline has been operating at a loss every day. Today, the board made the painful decision to apply to the Ministry of Transportation and Communications to suspend flights, followed by the further step of dissolving the company. Although TransAsia also stated that it will lay off employees in accordance with the Labor Standards Act, staff still felt helpless about the company’s impending dissolution before year-end, and the atmosphere remained gloomy. Shareholders holding TransAsia stock (with net asset value per share of NT$7.17) currently face a trading halt until delisting. An interim shareholders' meeting is scheduled for January 17, 2017.

Passengers are mainly concerned about the follow-up handling of tickets they hold. TransAsia Airways stated that full refunds can be provided. It is roughly estimated that there are over 100,000 sold tickets pending confirmation and processing. The decision to continue selling tickets prior to the dissolution resolution has also drawn questions from consumers. Holders of TransAsia Airways tickets should pay attention to the follow-up arrangements to avoid affecting their own rights and interests.