Cash-strapped Indochina Airlines calls for investment

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Báo Tuổi Trẻ English - 100 month(s) ago 7 readings

Cash-strapped Indochina Airlines calls for investment

Low-cost carrier Indochina Airlines is looking to raise at least VND300 billion (US$16.79 million) to support its operations this year and in 2010.

Indochina Airlines is expected to resume operations next Monday

Photo courtesy of Thoi Bao Kinh Te Sai Gon

The private airline’s commercial director, Do Anh Tuan, told The Saigon Times Daily the carrier is calling for fresh investment from local investors to pump up the ailing airline.

“We’re calling for new investors and give priority to local investors,” the daily quoted Tuan as saying amid the news that Indochina Airlines had not been able to operate its only aircraft, a Boeing B737-800 because of prolonged debt.

Tuan said the aircraft was undergoing routine checks at the Aircraft Maintenance Workshop A75 at Tan Son Nhat Airport since November 1 and it would resume flights next Monday.

The company was also hurt as it did not receive a new Boeing B737-800 on October 22 as promised by its European aircraft leasing partner, according to Tuan.

Indochina Airlines has mapped out two plans to operate five daily trips between Hanoi and Ho Chi Minh City and one trip between HCMC and Danang or four on the first route and two on the latter.

Indochina Airlines, Vietnam’s first private carrier was licensed in May 2008 with initial capital of VND200 billion ($11.19 million) as required by the country’s aviation regulations.

But the carrier had to return one of its two aircrafts in April this year due to financial difficulties. The airline could also lose its license if it fails to pay off its debts.

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