Vietnam News Network

Vietnam News: Local, National, Business, Sport, Entertainment and Technology

Trade XRPUSD, Bitcoin and Cryptocurrencies

BUY & SELL XRPUSD | View XRPUSD News & Updates

Buy Sell XRPUSD, Bitcoin and Cryptocurrencies

Sky falls in on private airlines   2011-06-06 - VIR

Indochina Airlines (VP), Vietjet Aviation Joint Stock Company and Trai Thien Air Cargo have just a month to satisfy the requirements set by the Civil Aviation Administration of Vietnam (CAAV) to maintain air transport trading licences.


In late January 2011, VP which stopped flying for around 18 months, was urged by the Ministry of Transport to finalise procedures for the air operator certificate (AOC), restructure capital sources and pay up all debts it owed to fuel supplier Vietnam Air Petrol Company Limited (Vinapco) prior to June 30, 2011.


According to a Vinapco representative, as of June 1, 2011 Vinapco had yet to receive any payment for the VND20 billion (around $1 million) VP owed after two years now.


Trai Thien, the first licenced air cargo in Vietnam, incurred the same fate and faces having its operational licence withdrawn due to financial distress.


“We could not contact the management of VP and Trai Thien, let alone say whether these airlines have striven to meet CAAV requirements,“ said CAAV’s air transport department head Vo Huy Cuong.


The situation is little better for Jetstar Pacfic Airlines. In mid May 2011, CAAV sent an emergency dispatch to Jetstar asking it to shortly pay up a debt of VND170 billion ($8.2 million) the airline owed to Vinapco. Earlier, the fuel supplier Vinapco sourced approval from competent government agencies to cease supplying fuel to Jetstar.


“Management authorities needed to carefully measure investors’ capacity when it comes to air transport licencing to avoid private airlines being persistent debtors to our fuel suppliers,” said Vinapco’s general director Tran Van Phuc.


Jetstar just sent Vinapco a proposed lengthy debt payment scheme and asked it to sign further air fuel supply contract with Vinapco, according to a Vinapco source.


Industry insiders assume fledgling private airlines could hardly survive in a market with a modest air transport volume of less than 14.1 million passengers and 176,000 tonnes of freight per year like Vietnam even though the country is forecast to become the world’s third fastest international passenger and freight transport market during 2011-2020.


“With no peculiar business tactic, private airlines can hardly compete with state-owned giant Vietnam Airlines which holds an 80 per cent market share,” said Mekong Aviation Joint Stock Company (Air Mekong) chairman Doan Quoc Viet.


Air Mekong is the single private airline operating healthily in current tough market conditions.

Other news

Banks and logistics companies shaking hands to become stronger   2011-06-05

Land prices fall in Ha Noi's outskirts   2011-06-05

A bitter pill for property developers   2011-06-05

Industrial clusters fail to lure investors   2011-06-04

Tax on imported cars, motorbikes proposed   2011-06-04

Logistic expo starts in City   2011-06-04

Stocks slip due to profit-taking   2011-06-04

Shares now cheaper than vegetables   2011-06-03

Vietnam may delay higher power price amid Asia’s worst inflation   2011-06-03

MOF attempts to raise export tariffs on some steel products   2011-06-03

Authorized automobile importers puzzled with new regulations   2011-06-03

Businesses cutting down expenses on media campaigns   2011-06-02

Big guys determined to list shares despite sharp stock price falls   2011-06-02

MOIT’s tentative policy facing strong opposition from steel manufacturers   2011-06-02