FAT Seeks to Manage TransAsia Reorganization

Transasia airways
Photo by Michel Teiten www.mablehome.com via Wikimedia Commons

Far eastern air transportLess than a month after shutting down operations, TransAsia Airways’ reorganization is set to be managed by Far Eastern Air Transport (FAT), Yahoo News reported. According to the plan, FAT will take on about 1,000 former TransAsia employees, including about 300 ground staff, 200 flight attendants, and 150 pilots. FAT is expected to take over the bankrupt airlines routes starting next week.

FAT plans to discuss restructuring plans with TransAsia’s creditors next week. If successful, FAT would accept the financial burden of debt owed on aircraft, including NT$3.8 billion for two A330s.

While the Civil Aeronautics Administration (CAA) welcomes the restructuring plan, having China Airlines or EVA in charge of the plan would have been preferred, according to Apple Daily. FAT also plans to acquire some of TransAsia’s aircraft, including seven ATR planes and two A321 planes.

TransAsia announced the cancellation of its services on November 22 due to financial difficulties. The CAA fined the airline NT$3 million for cancelling flights without prior notice. The government agency has sought to help laid off employees find jobs elsewhere and has placed 200 people with other airlines.

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