Far Eastern Air Transport Corp (遠東航空) is waiting for a reply from the Ministry of Transportation and Communications (MOTC) regarding its application to terminate air services between Taipei and Tainan.
Far Eastern executives have indicated that the company wants to cease services on the route as soon as possible.
However, MOTC officials have expressed the hope that Far Eastern would continue to operate the route until at least after the Lunar New Year.
It is hoped the airline might be able to take advantage of the surge in demand for transport over the holiday period.
The company filed the application with the Civil Aeronautics Administration under the MOTC late last month after promotional efforts to attract more passengers for the Taipei-Tainan route proved unsuccessful.
On Nov. 12, Far Eastern reduced the price of a one-way ticket on the Taipei-Tainan route to NT$1,060 (US$32.80), lower than the NT$1,255 for a one-way journey between the two cites on the Taiwan High Speed Rail.
Despite this, seat occupancy on aircraft flying the route has remained at about 30 percent, meaning the airline is operating the service at a loss.
A Far Eastern executive said the company will focus on regional routes over the next decade.
In addition to a domestic route between Taipei and Kaohsiung, the Taipei-based airline operates international services to China, South Korea, Indonesia, Malaysia, Palau, the Philippines, Singapore, Thailand, Vietnam and Cambodia.
Taiwan's domestic air services are struggling to compete less than a year after the Taiwan High Speed Rail became operational in January.
Mandarin Airlines canceled its Taipei-Taichung route in May, followed by Uni Air's termination of its service on the Taipei-Chiayi route.
TransAsia Airways is still hanging on to its Taipei-Tainan route by using a propeller-driven airplane with about 70 seats, with the price set at NT$998 for a one-way flight.
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