Far Eastern Air Transport (FAT,
The CAA estimates that the company still owes domestic airports approximately NT$40 million (US$1.21 million) in departure and landing fees.
The default came to light after the Chinese-language China Times reported that a FAT company check to CPC Corp, Taiwan (CPC, 台灣中油) for NT$150 million bounced on Tuesday.
The check was to pay for aviation fuel.
CAA director general Billy Chang (張國政) said yesterday that the administration had begun to look into the company's financial situation.
Specifically, the administration will focus on some of the company's recent transactions, including the sale of its cargo station at Xiamen Airport in Fujian Province, China, and its joint operation with Angkor Airways of Cambodia.
"We want to know why the firm has not received monies that are owed to it," Chang said, adding that the amount was estimated to be more than NT$1.3 billion.
Chang said the company accumulated a loss of NT$3.3 billion last year, which was more than half of its capital.
He said the administration could consider applying to the court for a compulsory execution order if the company failed to pay its fees by Monday. The administration may also suspend the company's right to operate certain air routes.
He said the CAA had proposed several strategies to cope with the repercussions of the airline's financial crisis. However, he refused to give any details on the grounds that the administration was still investigating the case.
Meanwhile, the International Air Transport Association's Clearing House issued a formal notification to its members that it had suspended FAT's membership for running up debts that total US$848,000.
The measure means that FAT's flight tickets will no longer be recognized by other domestic and international airlines and passengers holding FAT tickets will not be able to transfer to other airlines.
Aside from domestic routes, FAT also operates direct flights to Borneo and Jeju, South Korea. It has also worked with China Eastern Airlines and China Airlines to offer connecting flights from Jeju to Beijing, Shanghai and Shenyang in China.
Problems could arise should FAT passengers need to take connecting flights to China from Jeju.
FAT also had its status changed to a stock requiring cash delivery by the GRETAI Over The Counter Securities Market yesterday as a result of the bounced check and related financial problems.
FAT public relations manager Hanson Chang (張有朋) said yesterday there were no financial problems to worry about.
He told the Taipei Times in a brief telephone interview that income due to be received later this month would help to pay the debts.
"The NT$200 million to NT$300 million income from our non-core operations coming in later this month will bridge the gap," Chang said.
With regards to the bounced check, FAT had struck a deal with CPC whereby it had agreed to pay NT$30 million in cash first, and issue three checks redeemable next Wednesday, on Feb. 29 and on March 5.
FAT reported a net loss of NT$3.91 per share as of Sept. 30 last year. Fourth quarter results have yet to be disclosed.
FAT shares fell to the daily limit for the second day in a row, closing at NT$6.96 yesterday.
Domestic airline companies suffered heavy losses last year, mostly because of the high cost of fuel and a significant decrease in the number of customers following the launch of the high-speed rail service.
Business leaders, including Fan Chih-chiang (范志強), chairman of Taipei Airlines Association (台北市運輸商業公會), have called for deregulation and the implementation of direct charter flights from Taiwan to China to help domestic airline companies survive.
Yangmingshan National Park authorities yesterday urged visitors to respect public spaces and obey the law after a couple was caught on a camera livestream having sex at the park’s Qingtiangang (擎天崗) earlier in the day. The Shilin Police Precinct in Taipei said it has identified a suspect and his vehicle registration number, and would summon him for questioning. The case would be handled in accordance with public indecency charges, it added. The couple entered the park at about 11pm on Thursday and began fooling around by 1am yesterday, the police said, adding that the two were unaware of the park’s all-day live
Fast food chain McDonald's is to raise prices by up to NT$5 on some products at its restaurants across Taiwan, starting on Wednesday next week, the company announced today. The prices of all extra value meals and sharing boxes are to increase by NT$5, while breakfast combos and creamy corn soup would go up by NT$3, the company said in a statement. The price of the main items of those meals, if ordered individually, would remain the same. Meanwhile, the price of a medium-sized lemon iced tea and hot cappuccino would rise by NT$3, extra dipping sauces for chicken nuggets would go up
Yangmingshan National Park’s Qingtiangang (擎天崗) nature area has gone viral after a park livestream camera observed a couple in the throes of intimate congress, which was broadcast live on YouTube, drawing large late-night crowds and sparking a backlash over noise, bright lights and disruption to wildlife habitat. The area’s livestream footage appeared to show a couple engaging in sexual activity on a picnic table in the park on Friday last week, with the uncensored footage streamed publicly online. The footage quickly spread across social media, prompting a tide of visitors to travel to the site to “check in” and recreate the
Minister of Digital Affairs Lin Yi-ching (林宜敬) yesterday cited regulatory issues and national security concerns as an expert said that Taiwan is among the few Asian regions without Starlink. Lin made the remarks on Facebook after funP Innovation Group chief executive officer Nathan Chiu (邱繼弘) on Friday said Taiwan and four other countries in Asia — China, North Korea, Afghanistan and Syria — have no access to Starlink. Starlink has become available in 166 countries worldwide, including Ukraine, Malaysia, the Philippines and Vietnam, in the six years since it became commercial, he said. While China and North Korea block Starlink, Syria is not
RSS