Transportation Committee: FAT not expected to halt operations: Hochen Tan -

Transportation Committee: FAT not expected to halt operations: Hochen Tan

Credit: taipeitimes.com

  • Dec 06 2017 17:15About: 10 days ago
  • 7 views

Far Eastern Air Transport (FAT) is not facing any threat that would cause it to suspend flights, Minister of Transportation and Communications Hochen Tan (賀陳旦) said yesterday, adding that the airline has over the past four months met flight safety standards laid out by the Civil Aeronautics Administration (CAA).

The airline’s operations and financial soundness once again became the focus of a meeting of the legislature’s Transportation Committee, following a report by the Chinese-language magazine Mirror Media that it might suspend flights due to a worsening financial situation.

Democratic Progressive Party Legislator Lee Kun-tse (李昆澤) said that the average age of the airline’s fleet is 22 years, with the oldest aircraft having been in use for 26 years.

Loans that the airline had secured from banks to finance its operations could be problematic, as loans are supposedly given to carriers that provide reliable transportation, he said.

The airline only set up a trust account at the request of lawmakers, Lee said, adding that funds in the account should not be less than the carrier’s revenue from ticket sales.

He asked Hochen whether the airline would suspend flights as its financial situation worsens, saying that as it offers flights to the nation’s outlying islands, the Ministry of Transportation and Communications should have backup plans in case the airline suspends operations.

Hochen said that the airline is not facing any threat that would cause it to suspend operations.

While the carrier’s operations were somewhat unstable in the first half of this year, they have gradually gotten back on track after it sought assistance from a foreign firm in August, he said.

The airline added one new aircraft to its fleet last month, Hochen said, adding that it has over the past four months met the CAA’s flight safety standards.

“The airline has to first ensure that passengers’ interests will not be compromised and workers’ rights should be protected as well should something happen to its operations,” he said.

The carrier has sufficient funds in the trust account, Hochen said, adding that it would soon be asked to submit a timeline on the addition of new aircraft to its fleet.

Far Eastern said in a statement that it does not have any operational or financial troubles.

“Some people have used the media to spread false information since a court approved Far Eastern’s financial restructuring plan in October 2015,” the company said. “Our legal department has collected evidence and filed a lawsuit against Mirror Media over the unsubstantiated report.”

Far Eastern on Sept. 14 submitted a flight safety and financial improvement plan to the ministry and CAA, it said, adding that it established the trust account to protect consumers.

Operations have been profitable since they resumed in 2015, the airline said.

The CAA said in a statement that Far Eastern’s flight hours have been limited to 1,350 per month due the need for sufficient time to maintain aging aircraft, adding that it would continue to closely monitor the airline’s operations.

“As a precautionary measure to manage the potential financial risks that Far Eastern might face, we have asked the airline to address issues arising from its use of bank loans, which the company promised to resolve by the end of this year,” the CAA said.



Follow Us on Twitter

Far Eastern Transport (FAT) facing threat that would cause suspend flights Minister Transportation Communications Hochen (賀陳旦) said yesterday adding airline over past four months flight safety standards laid Civil Aeronautics Administration (CAA). The airline’s operations financial soundness once again became focus meeting legislature’s Committee following report Chinese-language magazine Mirror Media might worsening situation. Democratic Progressive Party Legislator Kun-tse (李昆澤) average fleet years with oldest aircraft having been years. Loans secured from banks finance could problematic loans supposedly given carriers provide reliable transportation said. The only trust account request lawmakers said funds should less than carrier’s revenue ticket sales. He asked whether situation worsens saying offers nation’s outlying islands Ministry have backup plans case suspends operations. Hochen operations. While were somewhat unstable first half this year they gradually gotten back track after sought assistance foreign firm August said. The added last month said CAA’s standards. “The ensure passengers’ interests will compromised workers’ rights protected well something happen operations” carrier sufficient account said soon submit timeline addition fleet. Far statement does operational troubles. “Some people used media spread false information since court approved Eastern’s restructuring plan October 2015” company said. “Our legal department collected evidence filed lawsuit against unsubstantiated report.” Far Sept. submitted improvement ministry CAA said established protect consumers. Operations profitable resumed 2015 hours limited 1350 need time maintain aging aircraft continue closely monitor operations. “As precautionary measure manage potential risks face address issues arising bank loans which promised resolve year” said.

Related stories with Transportation Committee: FAT not expected to halt operations: Hochen Tan

Fire prompts Ko to tackle issue of illegal structures -World News
Fire prompts Ko to tackle issue of illegal structures 10 days ago
In the wake of a deadly fire on Tuesday night, Taipei Mayor Ko Wen-je (柯文哲) yesterday said he is prepared to tackle an issue that defeated some of his predecessors, including former president Chen Shui-bian (陳水扁
Trade mission in Nigeria to keep all of its staff: MOFA -World News
Trade mission in Nigeria to keep all of its staff: MOFA 10 days ago
The nation’s trade mission in Nigeria is to keep the same number of staff after it relocates from the capital, Abuja, to Lagos, a Ministry of Foreign Affairs (MOFA) official said on Tuesday. Department of West Asia and African Affairs Deputy Direc
Complete WWE NXT TV Taping Results for Tonight *Spoilers* -World News
Complete WWE NXT TV Taping Results for Tonight *Spoilers* 10 days ago
Complete WWE NXT TV Taping Results for Tonight *Spoilers*, including the first round matches to determine and new #1 contender!
Transitional Justice Act: Schools named after Chiang Kai-shek to be renamed: education minister -World News
Transitional Justice Act: Schools named after Chiang Kai-shek to be renamed: education minister 10 days ago
Minister of Education Pan Wen-chung (潘文忠) yesterday said that he would meet with the administrators of schools named after former president Chiang Kai-shek (蔣介石) to discuss the Act on Promoting Transitional Just
Nearly 200 Royal Caribbean passengers sickened by stomach bug -World News
Nearly 200 Royal Caribbean passengers sickened by stomach bug 10 days ago
Incidents of gastrointestinal illnesses aboard cruise ships have gone down in recent years.
Lexus teases its flagship for Detroit auto show -World News
Lexus teases its flagship for Detroit auto show 10 days ago
Lexus is readying a crossover concept that it's calling a new "flagship," perhaps mimicking a move with its car lineup where it created the new LC flagship coupe priced above ...
Watch: Car Bros lampoon the LA Auto Show -World News
Watch: Car Bros lampoon the LA Auto Show 10 days ago
The Los Angeles Auto Show’s media days are closed, and the doors to the public are wide open. However, during the media preview, the guys behind the funniest car-centric channel on YouTube took ...
The Miz On Not Being Ready For First John Cena Feud, Baron Corbin, His Confidence Level Now, More -World News
The Miz On Not Being Ready For First John Cena Feud, Baron Corbin, His Confidence Level Now, More 10 days ago
The Miz On Not Being Ready For First John Cena Feud, Baron Corbin, His Confidence Level Now, More
How airlines are squeezing more seats onto their planes -World News
How airlines are squeezing more seats onto their planes 10 days ago
WHEN Gary Leff, a prominent travel blogger, took his first flight on one of the new “no legroom” planes operated by American Airlines, he found that the experience was not nearly as bad as he feared. American had drawn howls of protest from customers
Lucky operator on tractor -World News
Lucky operator on tractor 10 days ago
Lucky operator on tractor
Excavator operator wrong -World News
Excavator operator wrong 10 days ago
Excavator operator wrong