Taiwanese carrier Trans Asia Airways has announced to shut down the company, following by stopping all operations immediately.
A committee meeting was called this morning to discuss the future plan of the company after cancelling all flights on November 22.
In a media conference this afternoon, Vincent Lin, chairman of Trans Asia Airways, said: “We decided to dismiss the whole company. The company is facing financial loss after its flights crashed in Magong in 2014 and Taipei in 2015. It recorded a NT$2 billion loss in end of 2015, and a total of NT$2.7 billion loss by end of October this year, which means we are losing around NT$200 million per month, NT$10 million each day.
“Although flight safety has been improving after the incidents, and the number of domestic passengers increased from 20 per cent to 60 per cent, as well as international travellers, it doesn’t help much.
“When we were discussing the future path of the company, we came up two methods – dismiss or restructure.” Lin said: “We turned down the later one because of two reasons. First, UD dollar is increasing, as so as the oil price. We are already facing the lose every day. This makes our burden heavier, and we don’t think Trans Asia will have the ability to bounce back to profits in the coming six months. We still have certain amount of asset, and we don’t want to wait until bankrupt. Therefore, why don’t we be responsible to pay the dismissing salary to employees and compensation to passengers. Second, “restructure” is too risky. Our flying crews will worry about the situation, which may affect their professional judgement during the flight. Flight safety is always in our first priority.”
Trans Asia has contacted Civil Aeronautics Administration to transfer the affected passengers to fly with other Taiwanese carriers. Or, passengers who booked Trans Asia’s flight can get the refund in 45 days.