Taiwan’s Far Eastern shuts down

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Established in 1957, the Taipei-based FAT declared bankruptcy in May 2008 but resumed operations three years later and completed bankruptcy restructuring in October 2015. (PHOTO: Shutterstock)
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Taiwan carrier Far Eastern Air Transport (FAT) announced on 11 December it was shutting down and had ceased all operations. Taiwan’s Civil Aeronautics Administration (CAA) announced it had asked two other domestic carriers to lay on additional flights to help stranded passengers. “Due to financial losses and difficulties in securing funds for operations, we would stop all aviation services starting Dec. 13,” FAT wrote in a statement. “Severance pay for our employees would be calculated until Dec. 13, except those who are to stay at the company to handle the aftermath,” it said. “The human resources department would send employment certificates and documents to cancel employees’ National Health Insurance and labor insurance so they can apply for unemployment compensation.”

FAT vice presidents Huang Yu-chi and Lu Chi-rong apologised to the public for any inconvenience and said FAT had a “funding gap” of US$986,647. “Since 2011, people have seen how hard FAT chairman Chang Kang-wei has worked to fund the airline’s operations,” Huang said at a news conference. “Despite the losses, Chang still hoped to move the company forward and it is a pity that it has to shut down because of funding problems.”

Established in 1957, the Taipei-based FAT declared bankruptcy in May 2008 but resumed operations three years later and completed bankruptcy restructuring in October 2015. Beginning in 2004, FAT invested in the Cambodian airline, Angkor Airways. Angkor Airways subsequently shut down flight operations on 9 May 2009.

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