Bankrupt Indochina Airlines set to lose license

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VietStock FI English - 48 month(s) ago 3 readings

Bankrupt Indochina Airlines set to lose license

The Ministry of Transport is considering withdrawing the license issued to the debt-laden Indochina Airlines which has not operated flights for more than a year.

“We are likely to withdraw its license sometime this week or next week because it has become nearly bankrupt,” Deputy Minister of Transport Pham Quy Tieu told German news agency DPA.

A final decision is likely to be announced this month after the Ministry reports about Vietnam’s first private carrier to the government, the Civil Aviation Administration of Vietnam said.

“It cannot repay any debts now,” Tieu said. “Withdrawing the business license means the death knell for Indochina Airlines.”

Ha Dung, a popular music composer who set up the carrier, has disappeared and creditors are unable to locate him.

The firm has debts totaling VND60 billion (US$3 million).

The government issued Indochina its license in 2008 and the airline began flying at the end of that year with leased aircraft, but operated for less than a year.

It owes VND25 billion to Vietnam Air Petrol, a subsidiary of Vietnam Airlines, and VND800 million to Hanoi-based travel agencies, according to newswire Vnexpress.

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