TransAsia Airways’ sudden closure catches trade by surprise

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The unexpected closure of Taiwan’s struggling TransAsia Airways on November 23 were met with mixed reaction across the industry, ranging from shock to dismay.

In the first three quarters of 2016, the 65-year-old company ran up losses of more than NT$2.2 billion (US$69.2 million), with problems mainly attributed to the two plane crashes the carrier suffered in 2014 and 2016.

Said chairman, Vincent Lin: “We tried to look for 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.”

Given the short notice given by TransAsia’s immediate termination, William Lu, general manager of Best Travel, had to cancel the reservations of overseas clients booked on the carrier.

Lu elaborated: “While the refund process is ongoing, they may not travel to Taiwan and choose other destinations instead. We try to downplay the impact and waive the cancellation, which affects our business.”

On the other hand, Swire International Travel Services general manager Norman Meng is less perturbed as TransAsia is not a choice carrier among his clients. He said: “We seldom use TransAsia as it operates mostly to secondary routes. This does not appeal to TMCs, and as a non-alliance member the only mileage that can be accumulated is with the airline itself.

“Only specific domestic destinations such as Penghu and Hualien are affected as TransAsia is the only airline that operates these routes. Other flight routes and time slots will soon be replaced by other Taiwan Airlines such as China Airlines and Eva Air,” he added.

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