The Ministry of Economic Affairs (MOEA) said yesterday that the operation of Sino Swearingen Aircraft Corp (SSAC) is normal, denying there had been financial irregularities at the Taiwan-US joint-venture aircraft maker.
The Chinese-language United Daily News reported on Monday that SSAC's average monthly expenditure was US$4 million, but that amount rose to US$7.8 million in the first half of the year.
The ministry said in a statement that after obtaining a "type certificate" from the US Federal Aviation Administration last October, SSAC began production of nine SJ30-2 aircraft, which means it needs more funds.
SJ30-2 is a seven-seat aircraft that SSAC claims is the world's fastest long-haul light business jet. SSAC has received 299 orders, the ministry said, adding that it sent a team to investigate SSAC's finances in February.
SSAC's operations are normal, the ministry said.
It noted that the company is also in talks with Wachovia Corp for a loan of US$100 million to US$150 million, which is expected to be finalized in four months.
The company was formed by Swearingen Aircraft Corp and Sino Aerospace Investment Corp (
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