Airline’s bankruptcy leaves Vietnamese creditors in a quandary

Two months after the discount carrier Viva Macau stopped flying and announced bankruptcy, Vietnamese passengers and booking agents are still looking for return of their airfare and deposit money.

Nguyen Thi Mai Loan, a representative of the Top Solvent Company (HCMC), said that she booked two return tickets for early April flights at Holiday Vietnam, a booking agent for the Macanese airline, and paid is 4.9 million dong. On March 30, Loan read a newspaper report that Viva Macau had stopped operation. Loan hurriedly contacted Holiday Vietnam to demand her money back. She was told she would get her refund in four weeks.

However, four weeks later, Holiday Vietnam told her that TransViet, the general booking agent of Viva Macau in Vietnam, was responsible for paying her refund.

Loan told Tuoi Tre that on May 31, she went to TransViet to provide information about the flights, airfare and contact address and email. Loan was told that the information will be sent by TransViet to Macau.

According to Nguyen Hai, Chairman and General Director of TransViet, the total sum of money the company had in hand from booking agents and passengers who had booked tickets pending travel was $110,000. That sum was transferred to Viva Macau after the airline issued tickets.

TransViet has tried to contact the law firm that is managing Viva Macau’s bankruptcy proceedings without much success, Hai says. “To date, the Macau side has not released any notice about the time and procedures needed to settle the problem,” he adds ruefully.

TransViet has also been in touch with the Macau Consumers Association. The latter has only promised to give guidance so that TransViet can petition the court.

“The company is trying its best to claim back the money for the benefit of the company and its clients,” Hai said.

Viva Macau served seven foreign destinations with regularly scheduled flights, including HCM City, when it fell bankrupt. According to Tuoi Tre, when Viva Macau announced suspension of service, 33 flights between HCMC and Macau were canceled, affecting 4739 passengers.

Vo Huy Cuong, a senior official of the Civil Aviation Authority (CAAV) told Tuoi Tre that in April 2010, CAAV received petitions from the Southern Airports Corporation and TransViet Group asking it to assist the companies to contact Macau authorities.

Cuong said that CAAV has sent a document to its Macanese counterpart, reminding that Viva Macau should fulfill its financial responsibilities to Vietnamese partners and passengers. It has not received any reply yet.

According to Cuong, this is the first time that a foreign airline has suddenly stopped operation in Vietnam and then announced its bankruptcy.

A lawyer consulted by Tuoi Tre, Truong Thi Hoa, said that the general booking agent is not the legal representative of the airline in Vietnam. Enterprises and individuals seeking restitution should declare their claim and provide contact addresses to the lawyer representing the airline, and to the court that’s handling the bankruptcy proceedings.

Tuoi tre

Tags: Airline’s bankruptcy, Vietnam aviation, Vietnam aviation market