News
TransAsia Airways facing US$156 million in Airbus fines?
December 2nd 2016
Taiwanese local media has reported defunct TransAsia Airways could face up to NT$5 billion ($156 million) in cancellation fees for its latest Airbus order of four A330neos and six A321neos. Read More » The airline ordered the planes in 2010 with deliveries scheduled from 2018. Airbus said it was “in talks with the airline”, but it had no further comment to make for the time being.
Until it closed down last Monday, TransAsia operated six A320s and five A321s. Its four A330-300s have been stored since May after the airline failed to fill them on routes to Japan.
The Taipei District Court froze NT$1.2 billion in TransAsia assets after the carrier said it was closing, including NT$120 million to cover staff salaries.
“It was a painful decision to dissolve the company," TransAsia chairman, Vincent Lin, said last week. "We kept trying to find domestic and international professional bodies, partners, or even a new operational team to help TransAsia. It’s a pity that the hope was not fulfilled.”
Lin and other TransAsia executives were taken in for questioning late last week over suspicions they had engaged in insider trading. They were later released on bail.
Taiwan’s China Airlines (CAL) this week said it would assume TransAsia’s entire network from December 1 to February 15 to reduce passenger inconvenience during the Christmas and Chinese New Year holiday periods. The government said it would extend funding to lessen any negative financial impact this may have on CAL.
