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Ministry confirms bid for FAT

The Ministry of Transportation and Communications (MOTC) confirmed yesterday that a Singapore-based firm is interested in taking over Far Eastern Airport Transport (FAT, 遠東航空), without disclosing the name of the firm.

Minister Mao Chi-kuo (毛治國) said yesterday that he has been seeking new management that might be appropriate for FAT ever since he became the minister, and that a number of overseas investors have shown an interest.

“Whether this kind of opportunity could work depends on the attitude of FAT’s major shareholders,” Mao said.

“They need to make up their minds,” he said.

When asked if the new development means the ministry may soon be able to reinstate FAT’s rights for domestic flights, Mao said both the potential investor and FAT must present substantial evidence they have the ability to operate flights.

“Their terms of agreement must be really detailed and specific. For example, the investor must first deposit the money into a bank account, and the salary of FAT employees must be paid,” he said.

“In short, they have to show us something solid,” he said.

Mao said that the Civil Aeronautics Administration (CAA) is making a last-ditch effort, and the ministry is willing to give FAT a second chance.

Mao made the remarks at the inauguration ceremony yesterday morning for the new chairman and president of Taiwan Post Co (台灣郵政).

A story published in yesterday’s Chinese-language China Times said the Singaporean company has made a verbal presentation to FAT’s major shareholders and the CAA.

The story also said that the company said it agreed to temporarily take over FAT’s operation, while a US-based financial consulting firm has in principle agreed to offer US$100 million as an operation fund.

The story said that the two might have reached an agreement yesterday.

CAA and FAT spokespersons were unavailable for comment.
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