Tuesday, May 13, 2008

Angkor Airways executive sued for fraud

Tuesday, May 13, 2008
The China Post news staff

TAIPEI, Taiwan -- Nine local travel agencies yesterday filed an accusation of fraud against Alex Lou, executive director of the Taiwan branch office of the Cambodia-based Angkor Airways, after suffering total losses of over NT$100 million caused by the airline's abrupt suspension of flights between Taipei and the Southeast Asian country.

Yao Ta-kuang, chairman of the Travel Agent Association of the ROC, Taiwan said the firms, all based in Taipei, took legal action against Angkor Airways after consulting with the Cabinet-level Consumer Protection Commission (CPC) yesterday morning.

Yao said CPC officials advised them that the most effective way for the travel service firms to get back money they have paid for advance bookings on flights offered by the PhnomPenh-based airline between Taipei and Siem Reap -- home to the world famous Cambodian historic site of Angkor Wat complex.

In total, the travel agencies have sustained losses valued at over NT$100 million (US$3.2 million) due to the suspension of the flights, Yao said.

Lou was detained by prosecutors in Taipei on May 1 in connection with an alleged embezzlement scandal involving Taipei-based Far Eastern Air Transportation Corp., which leases planes to Angkor Airways.

Lou has been solely in charge of sourcing funding for operations, and his detention has plunged the company into financial woes, according to Angkor officials.

As a result, the carrier closed the branch last Friday and temporarily suspended all its Taipei-Siem Reap flights, stranding many Taiwanese tourists in Cambodia.

Angkor Airways operated between 20 and 23 chartered flights between Taipei and Siem Reap per month.

Also yesterday, CPC officials said a group of Taiwanese tourists stranded in Cambodia by the abrupt shutdown of Angkor Airways are scheduled to return to Taiwan today.

The officials said the nine travel service firms involved have arranged a China Airlines (CAL) plane to fly the 118 Angkor Airways ticket holders from Phnom Penh, capital of Cambodia, to Taiwan Taoyuan International Airport.

More than 100 other Angkor Airways ticket holders were flown back to Taiwan on several flights Saturday. They were among 449 Taiwanese tourists left without a return flight when the Phnom Penh headquartered carrier suddenly decided Friday to temporarily suspend all its flights between Taipei and Siem Reap.

The travel agencies have also promised to fully reimburse all expenses to the ticket holders, the CPC officials said.

The decision was reached in a coordination meeting held by the commission earlier in the day and attended by officials from the Civil Aeronautics Administration, the Tourism Bureau, the Travel Quality Assurance Assn., as well as travel agency alliance representatives.

The nine travel agencies include: Lion Travel Service Co., Ltd., Flyee Travel Service Co., Ltd., Favor Holiday, South East Travel Service Co., Ltd., PK Travel, Tai-Der International Travel Co., Ltd., China Times Travel Service and Come Best Travel & Tour Ltd.

The firms have also decided to soon file another suit against Angkor Airway to demand compensations from the airlines.

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