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Indochina Airlines dreams of flying again
The private air carrier Indochina Airlines has petitioned the Civil Aviation Administration (CAAV), for permission to resume commercial flights from the fourth quarter of 2010, reports VNExpress.
The air carrier that local newspapers describe as ‘on the verge of bankruptcy’, has once again expressed its readiness to resume commercial flights. However, it is highly possible that the proposal by the airline will be refused by CAAV.
The air services overseer points out that Indochina Airlines cannot meet two basic requirements to continue flying. Government’s Decree No.76 on air transport stipulates that an airline must have an AOC (Air operator’s certificate) 24 months after it provides first commercial flight, or its operating license will be revoked. Indochina Air began providing commercial flights in May 2008, which means that it must have an AOC by May 30, 2010.
Decree No.76 also clearly stipulates that if, within 12 consecutive months, an airline does not fly or have a business plan, it will have its operating license revoked. Indochina Airlines halted flights in October 2009, one year after it began operations
According to CAAV, it will very difficult for Indochina Airlines to meet either requirement at this moment, because the debt-ridden carrier has made no progress toward revival. Indochina Airlines would have to charter aircraft and hire crew, stewards and technicians, therefore, it is nearly impossible for the airline to get an AOC before May 30, 2010.
In late 2009, CAAV revoked Indochina Airlines’ certificate because it could not meet the requirements on finance, aircraft and workforce. Indochina Airlines’ business partners have sent many documents to state management agencies, denouncing the air carrier for falling into insolvency, while the air carrier’s workers said the airline has failed to pay wages due them.
Several days ago, in an interview given to VietNamNet, Vo Huy Cuong, Head of the Air Transport Division of CAAV, said that there are even more signs showing that Indochina Airlines is moribund.
“It is unclear if Indochina Airlines wishes to continue flying; even if the company decides to go ahead, it will be very difficult to continue operation,” Cuong said.
Indochina Airlines entered the aviation market at the beginning of the economic downturn occurred and demand for air travel sharply decreased. By the middle of 2009, nearly one year after taking off, the more Indochina Air flew, the bigger the losses it suffered. Owner Ha Hung Dung, well known in Vietnam as a musician, decided to cut routes. The airline continued with only one aircraft and on one route, Hanoi- HCM City.
Efforts made by the airline’s board of directors to save the air carrier did not help much. In November 2009, the airline announced a halt to flights.
vietnamnet, VnExpress
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