Far Eastern Air Transport (FAT, 遠東航空), one of the local airlines that have been hard hit by a downturn in domestic air travel, said yesterday it regretted that a proposal by a potential investor to give it a much needed shot in the arm had not taken off.
Shih Chien-hua (施建華), planning manager at FAT, made the remarks after learning that the Kinmen County Council had voted earlier in the day — 10-6, with two abstentions — to turn down a proposal by county government-owned Kinmen Kaoliang Liquor Inc (KKL, 金酒公司) to invest in FAT.
Shih however added that a meeting of FAT shareholders’ meeting will take place as scheduled today and that the meeting is expected to pass a proposal to increase the airline’s capital to ease its dire financial situation.
Shih said that two vacant board director seats are also expected to be filled during the meeting. The board will then contact interested parties on the possibility of investment, he said.
He declined to identify the potential investors, saying only that “they are from home and abroad.”
KKL’s new chairwoman, former legislator Joanna Lei (雷倩), contacted FAT last month with a proposal to inject between NT$2.2 billion (US$66.58 million) and NT$2.75 billion into the company in exchange for a 40 percent stake.
Lei said she was hoping that the investment would benefit Kinmen, which lies closer to China than to Taiwan, and help to provide its residents with more convenient transportation options.
Upon learning that the KKL investment proposal had been rejected, both Lei and Kinmen County Commissioner Lee Chu-feng (李炷烽) said they “respect the majority decision by the county council.”
KKL, which is run by the Kinmen government, enjoys an annual turnover of more than NT$11 billion, with its famous sorghum liquor enjoying the largest domestic market share in the white rum business.
FAT, Taiwan’s oldest privately owned airline, celebrated its 50th anniversary last November.
WALKING AWAY: At one point the world’s No. 3 smartphone brand, LG has fallen from a position as a market leader after a series of software and hardware mishaps South Korea’s LG Electronics Inc is to wind down its loss-making mobile division after failing to find a buyer, a move that would make it the first major smartphone brand to completely withdraw from the market. Its decision to pull out will leave its 10 percent share in North America, where it is the No. 3 brand, to be gobbled up by Samsung Electronics Co and Apple Inc with its domestic rival expected to have the edge. “In the United States, LG has targeted mid-priced — if not ultra-low — models and that means Samsung, which has more mid-priced product lines than
SHORTAGE: The city government said it would install water purification machines to provide drinking water to residents and would close all public swimming pools Officials, residents and businesses in Taichung have been gearing up for water cuts that are to take effect tomorrow as Taiwan deals with a water shortage. The water supply to large parts of Taichung as well as parts of Miaoli, Changhua and Hsinchu counties is to be cut on a rotational basis for two days a week, affecting an estimated 1 million customers, the Water Resources Agency said. It is the most stringent water rationing measure introduced in central Taiwan in nearly 50 years, Taiwan Water Corp (台灣自來水) official Lin Yi-hsiung (林義雄) said. The Taichung City Government said in a statement that
SPECULATION: The integrated house and land transaction income tax has been amended as the real-estate market heats up because of high liquidity and low interest rates Lawmakers across party lines yesterday agreed to July 1 as the provisional date on which a draft amendment to the Income Tax Act (所得稅法) is to come into effect, with the aim of curbing real-estate speculation. The consensus was reached following interparty negotiations at the legislature’s Finance Committee to determine when revisions to the “integrated house and land transaction income tax” would take effect. The committee on Monday last week passed a number of revisions to the act, but failed to agree on when they would take effect. Under the proposed revisions, the tax would be set at 45 percent
TAICHUNG PLANT: An official said that generator No. 3 had been retrofitted and it generates 0.46g of particulate pollution per kilowatt-hour, down from 0.6g to 0.7g A spike in demand for electricity made it necessary to restart the third coal-fired generator at the Taichung Power Plant, Taiwan Power Co (Taipower, 台電) said yesterday as a feud with the Taichung City Government lingers. Taichung Mayor Lu Shiow-yen (盧秀燕) has sought to keep the generator from being used. In 2019, he revoked Taipower’s license to operate the generator. However, the state-run utility has taken the city government to court over the license revocation and won the case in February last year, Taipower manager Chang Ting-shu (張廷抒) said. “We would like to remind the Taichung City Government that operation of the third