[2] After a succession of financial crises in early 2008, the airline publicly announced its bankruptcy and stopped all flights with effect from 13 May 2008.

Although a local court granted FAT's restructuring application on 23 February 2008, in the next three months it still failed to obtain the necessary funds and the company's bankruptcy protection expired on 22 May.

FAT had stopped paying employee salaries but the staff were still on duty as of May 2008 because they wanted to try to save the company but some were saying they could not hold on much longer.

[5] On 27 November 2010, a McDonnell Douglas MD-83 of FAT began flight test at Taipei Songshan Airport at 10am, marking the airline's return to the skies.

[15] Later that month, company chairman Chang Kang-wei stated that a group of people led by Tsai Meng-che offered to invest in Far Eastern Air Transport if the government lifted flight restrictions.

[16] Following the announcement, a number of FAT employees petitioned the government, asking relevant authorities to lift restrictions on the airline.