Thursday, 24 November 2016

TransAsia Airways Shuts Down Operations Amid Financial Woes

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It is painful to watch a  65 year old airline go down!

But that is the situation the Chairman of  65 year old TransAsia Airways;Vincent Lin is facing at the moment.
He  has announced plans to  dissolve and wind  down services of the Carrier due to financial difficulties.

Vincent Lin said the company had decided to bow out of the aviation industry because of its deteriorating financial situation.

He made the announcement after the company's board passed a resolution at an extraordinary board meeting on Tuesday to dissolve TransAsia Airways, which was founded in 1951.

Lin described the decision as a "painful" one.

He said all efforts to revamp the company  after the airline was involved in fatal accidents on domestic routes in July 2014 and in February 2015  did not yield positive results as the accidents had tarnished its image and drove its passenger load factor to below 70 percent.

TransAsia floated  a low cost airline called V Air, in December 2014, but that company struggled to stay afloat and its operations came to an end on October 1 due to heavy losses.

Lin said the company lost NT$2.7 billion in the first 10 months of 2016, and was averaging losses of NT$200 million to NT$300 million per month, or about NT$10 million per day.

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