Successful Restructuring for Far Eastern Air; 20 More 737s in 5 Years to Open New Routes to Japan, Korea, and Across the Strait

▲ Far Eastern Air. (Photo / Provided by Far Eastern Air)

Reported by Chen Jui-chung / Taipei

After nearly seven years of restructuring, Far Eastern Air officially received the “Confirmation of Successful Restructuring” from the Taipei District Court in Taiwan on October 19. Following the official shareholders’ meeting in November, the airline will complete its restructuring process.

Far Eastern Air Chairman Chang Kang-wei today (October 26) along with restructuring supervisor Tsai Hui-ling, General Manager Huang Sung-cheng, and Chief Operating Officer Tseng Chin-chi, held a press conference to share the details of the restructuring process. The airline stated that currently it operates 21 cross-strait destinations and 29 routes, but due to insufficient capacity, the execution rate is only 44%. With the introduction of four new 737-800 aircraft next year, its transport capacity to and from the cross-strait region, as well as Northeast Asia and Southeast Asia, will be enhanced.The first 737-800 is expected to be delivered in May, with initial routes including Lanzhou and Shijiazhuang. Future options include Japan, Korea, Guam, and Palau, along with increased flights from Taipei, Taichung, and Kaohsiung to outlying islands.

▲ Far Eastern Air Chairman Chang Kang-wei (second from right).

Chang Kang-wei, who took over Far Eastern Air as a sole investor, said that after nearly seven years of restructuring, success has finally been achieved. Next year, the airline will begin renewing its fleet. In addition to the four 737-800s, it will continue seeking new aircraft and plans to add four planes per year, aiming to increase the fleet by 20 new aircraft within five years. Since receiving the court’s restructuring order in 2009, resuming flights in 2011, and now completing the restructuring, General Manager Huang Sung-cheng noted that although the process involved many false accusations, the successful restructuring has helped clear the airline’s name.

Far Eastern Air stated that after the successful restructuring, past regulatory-mandated trust performance bonds and guarantees will be gradually reclaimed. Regarding related payment principles—including fuel and ground services—the airline will also coordinate with business partners to restore commercial terms comparable to those of other airlines, such as monthly billing, which will bring in hundreds of millions in additional cash flow.

Chang also pointed out that in the past, Far Eastern Air consistently gave salary raises to high-performing employees, with compensation above industry standards. Following the successful restructuring,this year’s earnings per share (EPS) could exceed 2.5 NTD, and an initial public offering (IPO) is planned for next year.