Taiwan airline TransAsia to shut down
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