LOOKING FOR ANSWERS TransAsia shuts down
Posted on 11/25/2016 | About 西衛里, Taiwan
Taiwan’s oldest surviving airline suspended its shares and flights on Monday and was dissolved on Tuesday of this week. The airline had two fatal crashes within months of each other in 2014/2015 and had been losing money since then.
The shutdown leaves 1,700 people out of work of which 200 appealed to the Ministry of Labour to look into compensation, job relocations and the future of the trust fund cash.Taiwan’s Minister of Justice Vice Minister Chen Ming-tang said that the government supports a freeze on TransAsia’s trust fund valued at US $37.57 million.
He has earmarked half to be used for compensation to employees and the other half going to refunds for customers and travel agencies.In July 2014, a TransAsia plane hit a building while landing in the Penghu Islands, killing 48 people. In February 2015 a TransAsia plane crashed into the Keelung River in Taiwan killing 35 people. The pilot who survived the incident acknowledged shutting off the wrong engine. It is reported that he failed a simulator test the year before but subsequently passed a make-up exam.The Executive Yuan is the executive branch of the central government of the Republic of China.
Executive Yuan spokesman Hsu Kuo-yung said that effective next week China Airlines will take over all the international and domestic routes operated by TransAsia except for a route connecting Kinmen County and Penghu County (smaller planes are required for this route).The move is expected to be a temporary one as enforced by the Civil Aviation Act which states that commercial airlines are obliged to increase the number of flights or operate different routes at the government’s request in an emergency.
TransAsia chairman Vincent Lin will be prevented from leaving the country and prosecutors will determine if Lin’s personal assets will be frozen.A government official has also stated that the Financial Supervisory Commission (FSC) has launched an investigation into possible insider trading in the company’s shares.