By / MOOK Scenic Spots Editorial Department compiled report
TransAsia Airways suspended operations today, holding an interim board meeting in the morning to decide on dissolving the company and exiting Taiwan's aviation market. Chairman Lin Ming-yung held a press conference at 2 PM to provide an explanation and also sent a letter to TransAsia employees expressing apologies.
Reporters gather outside the Air Force personnel activity center (Photo / MOOK Scenic Spots Zhang Yingying)
All SNG crews are in place (Photo / MOOK Scenic Spots Zhang Yingying)
TransAsia Airways booth at the 2016 Taipei International Travel Fair (Photo / MOOK Scenic Spots Zhang Yingying)
It is understood that TransAsia's 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. Currently, its passenger load factor is less than 50%, leading to daily losses. Today’s board meeting decided, with reluctance, to apply to the Ministry of Transportation and Communications for suspension of flights, followed by further company dissolution. Although TransAsia also stated it would lay off employees in accordance with the Labor Standards Act, employees still felt helpless about the company dissolving before year-end, with a somber atmosphere. Meanwhile, investors holding TransAsia shares (with a net value per share of NT$7.17) currently face a trading halt until delisting. An interim shareholders' meeting will be held on January 17, 2017.
Passengers are mainly concerned with the follow-up handling of tickets they hold. TransAsia Airways said full refunds are available. Currently, it is roughly estimated that there are over 100,000 sold flight tickets pending confirmation and processing. The decision to continue selling tickets before the dissolution resolution has also been questioned by consumers. Those holding TransAsia tickets should pay attention to subsequent handling measures to avoid affecting their own rights.
TransAsia Airways suspends flights for one day on 11/22, Civil Aeronautics Administration confirms
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