Far Eastern Air Transport Corp (FAT, 遠東航空) on Tuesday said that it is considering canceling a plan to add 11 Boeing Co 737 MAX planes to its fleet as the US company has not solved the problems with the jets following two crashes since October last year.
FAT originally planned to operate its new international flights after taking delivery of two 737 MAX jets by the end of this year.
As the 737 MAX has been grounded worldwide since March and Boeing has still failed to provide a solution to regulators, FAT is mulling replacing the 737 MAX order with Airbus SE A321 jets, FAT spokeswoman Patty Lu (盧紀融) said by telephone.
“Airbus has introduced its jets to us and we are interested. A321 aircraft would be a good choice for our new international flights,” Lu said.
As FAT has not paid a deposit to Boeing and suspended the purchase of 737 MAX jets after the accidents, there would be no cost for the company if it decides to purchase the new aircraft from Airbus, she said.
The company would need to take some time to make a final decision, she added.
The airline decommissioned one McDonnell Douglas MD-82 aircraft last month and plans to retire three other MD-83 aircraft in November and December, which would reduce the number of its McDonnell Douglas fleet to four, Lu said.
The remaining four are to be retired by early 2022, she added.
To replace the aged airplanes, the company has taken delivery of six ATR 72-600 jets, with another two due to join the fleet in November and December, Lu said.
FAT would decide whether to take delivery of a ninth ATR plane in February next year, depending on the outlook of the domestic and global aviation industry, she said.
“After the decommissioning is completed, the average age of our aircraft will be lower, which means higher fuel efficiency and lower operational costs,” Lu said.
The Civil Aeronautics Administration said that it has a neutral view regarding FAT’s choice of aircraft, Flight Standards Division Director Clark Lin (林俊良) said by telephone yesterday.
“As FAT has never applied to use A321 jets, it would need to submit a new preliminary plan if it decides to cancel the 737 MAX order, but if it decides to stick to the 737 MAX we would have to scrutinize the problems with the jet,” Lin said.
FAT posted revenue of NT$2.116 billion (US$67.78 million) for the first half of this year, up 21.33 percent year-on-year, while cumulative profit was NT$44 million, or earnings per share of NT$0.13, Lu said.
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
RSS