Print

Mail

wiki links

CAA voids creditor threat to FAT

The Civil Aeronautics Administra-tion (CAA) will not request that Far Eastern Air Transport Corp (FAT, 遠東航空) immediately disclose its financial statement for the last fiscal year, CAA director general Billy Chang (張國政) said yesterday.

"By law, airline companies are required to give the CAA a copy of their certified financial statement on the previous fiscal year in May," Chang said. "The administration will not ask it [FAT] to turn it in early."

A story published in yesterday's Chinese-language China Times said that some bank creditors had threatened to stop providing loans to FAT should it fail to deliver its financial statement by tomorrow.

The financial problems do not affect the company's operation, Chang said.

Meanwhile, more than 100 FAT employees gathered at the firm's headquarters near Taipei Songshan Airport yesterday to voice their support for the company.

FAT Workers Union chairman Chen Kuo-liang (陳國良) said so far employees had received their paychecks every month and that management had also promised that employees would soon receive their year-end bonus.

Chen asked that the China Aviation Development Foundation (CADF) help FAT resolve the financial crisis, following the precedent set by Taiwan High Speed Rail Corp (THSRC).

In 2005, the foundation provided then financially-troubled THSRC NT$4.5 billion (US$136 million) by releasing China Airlines shares.

Chen said the union was holding the press conference because it wanted to refute the wrong message being sent by the media. He said Far Eastern was a reliable brand with 50 years' experience and that anyone interested in managing the company was welcome.

In response, Minister of Transportation and Communication Tsai Duei (蔡堆) said on Friday it would be inappropriate for CADF to provide funds to FAT.

Earlier this month, FAT was granted an extension by the CAA to pay by tomorrow the airplane departure and landing fees for November and December of last year, a sum that has grown to NT$44.86 million.

Given that the company has yet to turn in the departure and landing fees for last month and this month and will soon be asked to pay the March fee as well, the total amount it owes is expected to top NT$1 billion.

Last week, the airline company filed for corporate restructuring in court, which would make it temporarily exempt from paying its debts.
This story has been viewed 1860 times.