The Civil Aeronautics Administration (CAA) yesterday suspended all international flights by Far Eastern Air Transport Corp (FAT, 遠東航空) for six months.
The CAA made the decision after determining that FAT’s finances had not shown any improvement.
Earlier this month, the CAA withdrew FAT’s right to operate domestic flights and asked the company to improve its finances by Sunday.
The council said in a statement that FAT could still apply to resume international flights or even cross-strait charter flights if it succeeded in solving its financial problems within six months.
If the airline fails to resume flights within the period, the CAA could recommend that the Ministry of Transportation and Communications permanently withdraw FAT’s right to offer international flights.
Unpaid salaries
Johnny Chen (陳國良), head of the airline’s workers’ union, said the union negotiated with the Council of Labor Affairs yesterday afternoon over FAT employees’ salaries, but that no decision was made as the council was concerned it would set a precedent, he said by telephone.
The union has staged several protests recently over the airline’s failure to pay overdue salaries and called on the government to intervene. FAT still owes its employees nearly two months in pay.
Chen denied that the union plans to take over the company, but said it would propose a restructuring plan to the authorities. He didn’t elaborate.
In related news, six Chinese airlines have been given the right to operate regular direct flights to Taiwan for the first time since 1949, Chinese authorities said yesterday, just days after the two countries agreed to allow the service.
Under the initial arrangement, China’s top three airlines — China Southern, Air China and China Eastern — will each operate four return flights a week, China’s Civil Aviation Administration said.
Three smaller carriers — Hainan Airlines, Xiamen Airlines and Shanghai Airlines — will each operate two weekly return flights, the Chinese agency said in a statement.
The number of domestic carriers could gradually increase depending on demand, the regulator said.
Detour
Under the agreements signed by the two sides on Friday, direct flights will begin on July 4 and involve 36 services between China and Taiwan each week. They will operate from Friday to Monday. Carriers from each side will operate 18 flights.
Although the flights are called “direct,” they still have to make a detour through Hong Kong airspace.
ADDITIONAL REPORTING BY JERRY LIN
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