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Vietnam Airlines blasts rival’s suggestion to spin off fuel arm
Vietnam Airlines has panned Jetstar Pacific’ suggestion that the Vietnam Air Petrol Company should be separated from it, calling it an effort to weaken the national flag carrier and drive public opinion against it.
In a press release Sunday, the carrier said Jetstar Pacific’s efforts are not aimed at getting rid of the monopoly that exists in the aviation fuel market.
Earlier, at a public hearing on April 14, the Vietnam Competition Council said Vietnam Airlines’ jet-fuel supply company, known better as Vinapco, has abused its monopoly position and flouted the Law of Competition.
It also fined Vinapco VND3 billion (US$168,300) for cutting off fuel supply to Jetstar Pacific on April 1 last year following an argument over prices.
Vietnam Airlines pointed out at the hearing that merely spinning off Vinapco would not curb the monopoly and that only allowing more companies to supply aviation fuel would.
The Council agreed and told official agencies to license more fuel companies.
Vietnam Airlines also said Jetstar Pacific Airlines’ suggestion takes aim at its self-sufficiency.
Responding to the flag carrier’s criticism, Luong Hoai Nam, Jetstar Pacific’s general director, said, “We still maintain our recommendation about separating Vinapco from Vietnam Airlines.”
In other countries like Thailand and Malaysia, airlines do not own fuel-supply companies, he said, adding the separation would create “healthy competition.”
Pacific Airlines transformed into the low-cost Jetstar Pacific Airlines in May 2008 after tying up with Australia’s Jetstar Airways.
Thai Uyen
thanhnien
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