Tuesday, 01/06/2010 15:56

Struggling airline likely to be grounded for good

The national aviation authority plans to recommend to the Ministry of Transport to cancel Indochina Airlines’ license since the private airline has failed to comply with aviation rules.

Vo Huy Cuong, Head of the Civil Aviation Administration of Vietnam (CAAV)’s Air Transport Department, said the carrier did not obtain an Air Operator’s Certificate before the deadline passed.

The certificate, granted by the CAAV, permits a carrier to use its aircraft for commercial purposes.

To get it, the airline should have adequate personnel, infrastructure, and finance to support its operations.

Under Vietnamese law, an airline should obtain the AOC within 24 months of licensing, which ended last month for ICA.

Minister of Transport Ho Nghia Dung told Nguoi Lao Dong (Laborer) newspaper the ministry has yet to receive a report on the issue from the CAAV.

All private airlines are facing a challenging time due to the global economic downturn but they are still obliged to abide by aviation regulations, he said.

“We can give the airline more time ... But if [it] is still not able to meet the criteria to fly again, we will have to consider suspending its operation.”

Indochina Airlines began operations in 2008 but had to return one of its two aircraft to the European leasing partner in April last year due to financial difficulties.

It accumulated debts of VND30 billion (US$1.68 million) and suspended operations last October.

In November the airline returned its remaining aircraft and the national aviation authority formally suspended its flight schedules.

In January the CAAV revoked the carrier’s traffic rights after it repeatedly failed to fulfill its commitment to fly again and was unable to prove its financial capability.

vietnews

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