Tai­wan air­line Tran­sAsia to shut down

The Sun (Malaysia) - - SUNBIZ -

TAIPEI: Tai­wan’s Tran­sAsia Air­ways Corp said yes­ter­day it would wind down op­er­a­tions and sus­pend all sched­uled flights, fail­ing to re­cover from two plane crashes in al­most three years.

Strug­gling to over­come safety con­cerns raised by Tai­wan’s reg­u­la­tor, the is­land’s third-largest car­rier has also been hit by in­tense re­gional and do­mes­tic com­pe­ti­tion and has re­ported losses for the pre­vi­ous six quar­ters. It shut down its low-cost of­fer­ing, V Air, last month.

Tran­sAsia’s col­lapse is, how­ever, a rar­ity in the in­dus­try in re­cent years as the sec­tor ben­e­fits from low in­ter­est rates and fall­ing fuel costs.

“This is a very painful choice for the com­pany,” CEO Daniel Liu told a news brief­ing, adding the com­pany was not able to ham­mer out an over­haul plan.

“Our com­mu­ni­ca­tions with in­vestors have not been suc­cess­ful,” he said.

Six to seven op­tions had been dis­cussed, he added, in­clud­ing rais­ing more cap­i­tal. Talks with po­ten­tial buy­ers had also not panned out.

Tran­sAsia op­er­ates 27 routes with a fleet of 16 air­craft in ser­vice and em­ploys some 1,800 peo­ple. The plan to shut down the firm will need to be ap­proved by share­hold­ers. – Reuters

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