Air industry in peril
Taiwan’s domestic carriers have been bleeding cash and reeling from the coronavirus pandemic.
While China Airlines, EVA Air and Starlux have received a combined loan guarantee of NT$50 billion from the government, that fund can run out by the end of June.
Both CAL and EVA have each issued NT$10 billion worth of corporate bonds to keep the companies going.
Market analysts say if international travel restrictions remain in place and the government refuses to inject more funds, the airlines will be in peril.
Starlux has also suspended its plan of opening regular flights to Okinawa, Japan and Cebu, the Philippines due to border shutdowns in Taiwan and the two other countries.