Taipei-based Far Eastern Air Transport (FEAT) is considering introduction of a strategic investor in order to alleviate its debt burden, according to the carrier's Chinese mainland chief, Shi Jianhua.

"We are trying to raise money in order to pay off our debt," Shi said. He added that FEAT is negotiating with a variety of unnamed companies, including airlines, regarding an investment. It has debt of US$10.7 million and a bank loan of US$160 million.

The carrier held a shareholders conference this week to discuss a reorganization plan. "The court will have the final say on it," Shi said. Taiwanese law stipulates that the company must withdraw from the stock market within 60 days once the court rules that it requires reorganization. The airline operates 757s and MD-80s.

FEAT is not the only Taiwanese carrier facing difficult financial times. Taiwan's "Ministry of Transportation and Communications" said the island's airlines have been hit hard by the bullet train, especially since Taipei-Taichung service started early last year. According to statistics released last week, passenger boardings fell 26.8% to 12.7 million in 2007, the lowest figure since 1992.

Mandarin Airlines quit the Taipei-Taichung route last May and Uni Air cancelled its Taipei-Chiayi service in August. Next month Uni plans to withdraw from Taipei-Kaohsiung and FEAT is expected to cancel its Taipei-Tainan and Kaohsiung-Hualien flights. Mandarin plans to suspend service from Taichung to Taitung.