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Indochina Airlines halt flights because of too few passengers
The private air carrier Indochina Airlines has reported to the Civil Aviation Administration of Vietnam (CAAV) that it will halt flying until the end of November 25 because of too few passengers.
Prior to that, Indochina Airline halted flights till November 1 to have its only aircraft maintained. At first, aircraft maintenance was scheduled to take place from November 1 to November 4, but then lasted until November 8. After that, the air carrier planned to resume flights on November 13. However, in the latest announcement, it said flights will not be resumed until November 26.
Director of Vietnam Air Petrol Company Vinapco Tran Huu Phuc said that Indochina Airlines still owes 18 billion dong to Vinapco for fuel. Therefore, Vinapco no longer allows Indochina Airlines to make deferred payments.. Currently, the airline has to pay some 300 million dong for fuel charges before every flight.
“We still cannot recover a debt of 18 billion dong from Indochina Airlines,” Phuc said.
Indochina Airline is now also owes the Southern Airports Corporation, Northern Airports Corporation, Noi Bai Catering Service Company and others, totaling 30 billion dong.
The air carrier now has only one aircraft which provides two flights a day on Hanoi-HCM City air route.
Since June 2009, CAAV sent four dispatches to the air carrier, instructing it to report about debts and agreements reached with partners on debt settlement. However, the air carrier has reported back on the issue as requested.
Therefore, Indochina Airline is facing the risk of having its license revoked from January 1, 2010. CAAV made the proposal to revoke the license to the Ministry of Transport, confirming that Indochina Airlines is in an unhealthy financial situation.
Minister of Transport Ho Nghia Dung said that it is considering the proposal.
Dung said that the ministry would allow CAAV not to intervene if fuel suppliers stopped providing services if contracts were violated.
In the past, fuel suppliers were not allowed to unilaterally stop providing fuel because management agencies feared this move would badly affect public transport.
Ha Yen
vietnamnet
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