Taiwan’s Administrative Enforcement Agency (AEA) has sold a used MD-83 in a third auction, after two previous auctions failed to produce any bids. The auction for the aircraft took place earlier this month on January 6 at Taipei Songshan Airport (TSA). The aircraft, a Far Eastern Air Transport B-28007, was sold for 3.2 million New Taiwan Dollars (TWD).
Details of the Auction
The Taipei Branch of the Administrative Enforcement Agency inside Taiwan‘s Ministry of Justice (MOJ) seized the aircraft to help settle unpaid costs after the Taiwanese airline Far Eastern Air Transport (FAT) ceased all commercial and private activity, then declared bankruptcy in December 2019. The MD-83 passenger aircraft sold at the auction had been in commission for nearly 35 years before it was taken to resolve outstanding charges that the defunct airline had left behind during its closure. The MD-83 previously faced two unsuccessful auctions after it failed to agree on any buyers but its third auction at Taipei Songshan Airport managed to sell the aircraft once and for all.
Financial History of Far Eastern Air Transport
This is not the first time Far Eastern Air Transport, in its roughly 60 year history, has faced the prospect of bankruptcy. In 2008, the Taiwanese airline shut down operations until a restructuring of the company led to them reopening passenger flights after a three year period of suspension. However, the company seemed to have things running smoothly until eight years later in 2019, when a string of other financial difficulties, including the cost to maintain their aircraft, forced them to file for bankruptcy yet again, with all operations coming to a standstill by the tail end of that year.
How do you feel about the outcome of this third auction, do you feel the sale should’ve been closed sooner? Let us know in the comments below.
