Airlines must appoint outside public welfare directors: CAA

Taipei, Taiwanese airlines with paid-in capital of NT$2 billion (US$64.6 million) or above must appoint at least one independent director responsible for public welfare "when they elect a new board of directors," the Civil Aeronautics Administration (CAA) said Friday.

The law, which took effect on Nov. 21, affects major airlines in Taiwan, including China Airlines (CAL), EVA Airways, Mandarin Airlines, UNI Airways, Tigerair Taiwan and Far Eastern Air Transport, according to the CAA.

The CAA said it hopes the new regulation will put the carriers in a better position to fulfill their corporate social responsibility in such areas as flight safety and customer service quality.

The introduction of social welfare independent directors was first broached two years ago after TransAsia Airways made the surprise announcement that it would cease operations because of its deteriorating financial situation.

The airline's abrupt closure impacted about 100,000 passengers at the time.

Airlines that fail to meet the new requirement will be fined up to NT$3 million and could even have their operational permits revoked, CAA said.

Source: Focus Taiwan News Channel