TransAsia Airways shares plunge

Shares of financially troubled TransAsia Airways fell by the maximum 10 percent at the opening of trading on Wednesday after they surged the previous day on news of interest in the airline from a potential buyer.

TransAsia abruptly announced on Nov. 22 that it was ending its operations, and its stock price had fallen 34 percent since then as of Monday.

But TransAsia shares rose by the maximum daily limit of 10 percent to NT$3.76 on Tuesday when former Civil Aeronautics Administration (CAA) Director General Billy Chang (???) said a business group he represents was willing to take over the carrier provided that all of its air routes remained intact.

That optimism was undermined late Tuesday, however, when TransAsia told the CAA that it would not change its mind to disband the company, affecting trading in the airline's shares when the market opened on Wednesday.

Nearly 2.7 million TransAsia shares changed hands before the stock's price had fallen by 10 percent, but sell orders remained for another 33.6 million shares.

TransAsia shut down its operations when it made its announcement on Nov. 22, but the company cannot formally dissolve until the decision is approved at a shareholders meeting in January, and its stock continues to be traded.

It closed at NT$5.60 a share on Nov. 18 before plunging to NT$5.20 on Nov. 21, when rumors that the airline was going out of business first surfaced.

The stock has continued to fall since then, hitting NT$3.42 at the close on Monday.

TransAsia was the third largest carrier in Taiwan following China Airlines and EVA Airways.

Source: Focus Taiwan News Channel