信義區英文口語讀書會

Q1. What's your opinion about the clsoe down of the TransAsia? What did it do to the aviation industry?

Q2.

Sixty-five years after its founding, TransAsia Airways announced Tuesday that its board had decided to dissolve the company and to cease all flights.

TransAsia Airways Chairman Vincent Lin yesterday apologized to company staff in an emotional statement at a press conference.

"The dissolution of the company is a painful decision," Lin said.

"We have tried to find domestic and international agencies, partners, and even new operation teams to help reverse the outcome, but regrettably, none of the solutions worked."

The company suffered two of the country's most deadly crashes in 2014 and 2015 and has not made a profit since, according to the chairman.

Since this January, the company has lost NT$200 million to NT$300 million every month.

"In other words, for every day the company operates, it loses NT$10 million," he said.

Yet despite its financial losses reaching NT$2.7 billion this October, the company was not looking at a deficit and had sufficient capital to "take care of its customers and staff," the chairman said.

The abrupt announcement came a day after the airline called a halt to all flights for Tuesday without notifying the Civil Aeronautics Administration (CAA) in advance.

Severance, Refunds Promised

Asked why the company had chosen this time to make the announcement, Lin said TransAsia was dissolving while it still had the capital to reimburse passenger fares, pay off staff and safeguard its partners' interests.

"Before the company closes down after 65 years in business, we will try our best to fulfill our final responsibility," he said.

The decision to dissolve the company must be confirmed by shareholders at a meeting slated for next January.

Details of the liquidation, including which airlines should take over TransAsia's planes and flight routes, will be discussed following the shareholders' meeting, according to the company.

The company will provide employees with severance packages that abide by the Labor Standards Act, Lin said.

Asked why TransAsia had denied rumors of a flight suspension Monday morning after its online ticketing system broke down, Lin said he didn't want the decision to "affect the pilot and crew's mood and to put passenger safety at risk."

There currently are still approximately 10,000 passengers affected by the Tuesday suspension and who need help returning to Taiwan, Lin said.

Prosecutors Investigating Criminal Offenses

TransAsia stock dealings surged irregularly before the company announced its suspension of all services on Monday, according to prosecutors.

Last Tuesday, prosecutors summoned TransAsia's legal department chief Fong Xiu-zhong as part of a probe into allegations ofinsider trading.

Earlier, prosecutors summoned three top TransAsia executives for questioning: TransAsia's chairman, its general manager Liu Dongming and its chief financial officer Yang Hsuan-yi.

Consumers' Foundation warned that TransAsia may face criminal charges for abruptly suspending service after promoting special offers at the International Travel Fair earlier this month.

"It would be reasonable for the airline to halt operations had it been running a serious deficit. However, (TransAsia) promoted several special deal packages to customers at the International Travel Fair in Taipei earlier this month, and even developed new flight routes in November," the Consumers' Foundation said in a statement.

The consumer rights group said the company may have committed fraud and urged prosecutors to step up investigations.