Aviation authority clips Indochina Airline’s wings

The country’s first private airline, which has only one aircraft to its name, is facing the axe if it can not pay off its debts and prove to the national aviation watchdog that it has the cash to survive.

The Civil Aviation Administration of Vietnam (CAAV) has warned Indochina Airlines that it will revoke its license if the airline fails to report on its plan to settle debts and how it will finance its operations for 2010. The airline has until September 15 to submit the plan.

The warning was issued after the airline failed to pay Vietnam Air Petrol Company (Vinapco), its fuel supplier. Vinapco is the country’s sole air petrol supplier.

Vinapco director Tran Huu Phuc told The Saigon Times Daily the airline still owes his company VND20 billion (US$1.12 million).

Indochina Airlines commercial director, Do Anh Tuan said that the airline would pay off its debt to Vinapco by the end of this year and would submit its report to the CAAV as required.

Indochina Airlines became the country’s first private carrier when it was launched in November 2008.

The airline currently operates domestic flights on the Hanoi – Ho Chi Minh City and Ho Chi Minh City – Danang routes.

Hong Nguyen

vietnews

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