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Indochina Airlines still given time to prove financial capability
The Civil Aviation Administration of Vietnam (CAAV) said on Wednesday the cash-strapped Indochina Airlines still has more than one month to take off again and prove its financial capability for continuing services otherwise its traffic right will be withdrawn.
Vo Huy Cuong, director of CAAV’s Air Transport Department, said the first operational private airline in Vietnam would lose its traffic right if it was unable to resume domestic service before January 1, or more than one year since the carrier launched its maiden flight.
Cuong told the Daily on the phone on Wednesday that Indochina Airlines said it planned to resume the HCMC-Hanoi flights on December 15 after several delays because of crippling debts and financial troubles.
Indochina Airlines had to return its only airplane Boeing B737-800 to the firm Travel Service from the Czech Republic on Tuesday as it had been unable to take off since October 30. Although Indochina Airlines had returned the aircraft to save costs, the contract with the European leasing aircraft company remained valid and the carrier would lease the aircraft when it had completed restructuring, Cuong said.
Indochina Airlines did not answer the Daily’s several calls on Wednesday to comment on the latest development at the carrier.
Do Anh Tuan, commercial director of the air carrier, had told the Daily one week earlier that the carrier had to pay US$24,000 a day in fees related to the aircraft although the aircraft had sat idly at Tan Son Nhat Airport. He said that Indochina Airlines would soon launch a new version of the website www.indochinaairlines.vn to receive online airticket bookings, but this website was inaccessible on Wednesday because of maintenance reasons.
CAAV is now waiting for Indochina Airlines’ official written report on financial capability and its plan for take-off again before taking appropriate actions towards the carrier.
“Everything is still in the hands of Indochina Airlines,” Cuong said. “The airline is still allowed to continue flights if it proves capability and submit such reports before January 1, 2010 otherwise we will propose the transport minister to get its traffic right back.”
Asked about the opportunity for new airlines to join Vietnam’s aviation market, Cuong said the overall market was growing as the double-digit domestic growth could offset the decline in the number of international passengers.
Cuong demonstrated that Jetstar Pacific Airlines posted average growth of 30% in passenger number while the national flag air carrier Vietnam Airlines was preparing new aircraft for more domestic and international flights.
Cuong said VietJet Aviation Joint Stock Co. (Vietjet Air) was taking active steps to make its maiden service possible in May 2010. This is five months behind the deadline for the valid period of two years for a license granted to a new airline as per aviation regulations.
VietNamNet/SGT
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