TEN AIRCRAFT:As the airline tries to claw back a down payment, its shares are plummeting, with orders to sell 81.75 million TransAsia shares still on the books on Friday
Date: Nov 28, 2016
By: Staff writer, with CNA
TransAsia Airways Corp (復興航空) is negotiating with Airbus Group SE over the possibility of recovering
NT$1.2 billion (US$37.57 million) it has made in down payments for 10 new aircraft, the carrier said yesterday.
TransAsia made the statement in response to speculation by some aviation industry insiders that as the company has announced its dissolution, it will lose the down payments for the new aircraft, which they estimated at NT$5 billion.
TransAsia placed orders for six A321neo aircraft in 2010 and four A330-800neo aircraft in 2014. They were scheduled to be delivered starting in 2018. The two models are officially priced at more than US$70 million and US$250 million respectively.
According to the insiders, in an aircraft purchase deal, the manufacturer usually gives a discount to the buyer, but requires a large down payment equal to about one-third of the purchase price, which is usually kept secret. [FULL STORY]