Indochina Air’s fate up to transport ministry: CAAV

The Ministry of Transport will determine Indochina Airlines’ fate in one month, just two years after the private carrier received its license, according to the Civil Aviation Administration of Vietnam (CAAV).

Vo Huy Cuong, director of CAAV’s Transport Air Department, said the Ministry would decide whether to revoke Indochina Airlines’ license after it received comments from relevant agencies and a report from the aviation body.

Cuong revealed the information on Tuesday after Indochina Airlines faxed a document to the CAAV stating its plans to resume flights in the fourth quarter of this year.

Cuong said the airline has failed to meet critical Vietnam civil aviation regulations – including possession of an air operator certificate (AOC), charter capital, flight operating capability and traffic right – even though the deadline is fast approaching. “Currently, Indochina Airlines fails to meet all these conditions,” Cuong said.

Indochina Airlines’ flight schedule and traffic right was revoked this January when it was unable to mobilize VND400 billion (some US$21.1 million) as it promised in a document sent to CAAV. The sum was necessary to restart and maintain domestic services after its suspension since late October 2009. The suspension affected more than 1,400 ticket holders, especially travelers during the Lunar New Year.

The carrier is yet to secure charter capital worth VND200 billion, the minimum level required to operate domestic flights in Vietnam. In addition, it still owes tens of billions of dong to service providers.

Tran Huu Phuc, director of Vietnam Air Petrol Co. (Vinapco), said on Tuesday that the airline owes the company VND20 billion. “We have sent Indochina Airlines our request for debt payment every two weeks but have not received any response. It seems to us that the airline does not have an official contact address,” Phuc said.

SGT

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Posted by VBN on Apr 29 2010. Filed under Aviation. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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