Taiwan’s Far Eastern Air Transport (FAT) rescinded last week’s closure notice but is subject to punitive action from the Civil Aeronautics Administration (CAA).

Chairman Chang Kang-wei held a press conference over the weekend, suggesting that the notice was mistakenly issued by airline executives after he was absent for 15 days.

“The company is not in any arrears, including salaries. Also, we have no intention to close the business,” he said.

Chang is optimistic that FAT would resume operations soon as it is due to receive fresh capital.

“Over the next two weeks, investor funds will fall into place, and there is an advance of approximately NT$1 billion ($33.1 million).”

Airline executives held a press conference last week to address FAT’s sudden closure, stating that the carrier had succumbed to financial difficulties and cashflow issues. They said that Chang had been uncontactable and “this all happened very suddenly”.

Meanwhile, the carrier’s operations remain suspended as CAA deliberates punitive action. For ceasing operations without authorisation, FAT could be fined up to NT$3 million and have its license revoked.

Local media reports that the carrier’s fate will be determined by a transport ministry ruling and it can appeal its case before 18 December.

Most of the affected flights are domestic, and under CAA’s directive, Mandarin Airlines and UNI Air are increasing flight operations ahead of the peak Lunar New Year period at the end of January