CAAV to inspect financial capability of Indochina Air

The Civil Aviation Administration of Vietnam (CAAV) plans to look into the financial capability of Indochina Airlines next week and will withdraw its traffic right if this first operational private airline in Vietnam fails requirements.

Vo Huy Cuong, director of CAAV’s Air Transport Department, told the Daily on the phone on Wednesday that the Ministry of Transport had okayed the withdrawal of the traffic right from January 1, 2010 as proposed by the aviation authority in case this carrier failed to prove financial sources for continuing its operations of flights.

CAAV submitted the proposal to the minister last month after the airline suspended two daily flights between HCMC and Hanoi, returned its only Boeing B737-800 to the aircraft leasing firm in Europe and was unable to show a sound plan to settle accumulated debts of over VND30 billion.

Indochina Airlines has sent a report to CAAV on how to mobilize funds for flights from December 15 and beyond. The airline said in the report that it would be able to find US$22 million to sustain its services, Cuong confirmed to the Daily.

The airline has petitioned CAAV to grant it a new flight schedule for eight flights from HCMC to Hanoi and Danang, and vice versa, as this aviation authority canceled its flight schedule in late November after its only aircraft left Vietnam.

Cuong said in addition to financial capability, Indochina Airlines was required to submit a feasible plan about the efficient use of its aircraft fleet. Ha Hung Dung, chief executive officer of Indochina Airlines, declined an interview suggested by the Daily about the chance for the airline to take off again on December 15 as it announced before and how the carrier was able to meet the requirements of CAAV.

Experts doubt the possibility for Indochina Airlines to take off again next Tuesday given the fact that its website at www.indochinaairlines.vn for ticket reservation remained inactive as of on Wednesday evening and it had not received the two Boeing B737-800 airplanes as planned.

Online publications quoted CEO Dung as saying that Indochina Airlines would strive to take off again at any cost because around VND370 billion (over US$20 million) had been spent since its maiden flight in November last year. Moreover, the carrier does not want to see more than 300 employees lose their jobs.

VietNamNet/SGT

Tags: Indochina Airlines, Vietnam aviation