The five-year business partnership between Vietnam’s Bamboo Airways and Saigon Ground Services JSC (SAGS) will come to an end from Monday next week, due to issues possibly linked to overdue debts.

SAGS began providing all ground services to Bamboo at Tan Son Nhat International Airport in Ho Chi Minh City, Da Nang International Airport in central Da Nang City, and Cam Ranh International Airport in south-central Khanh Hoa Province when Bamboo launched its maiden commercial flight in January 2019.

Bamboo Airways’ deputy general director Truong Viet Cuong said in a document recently sent to SAGS that the carrier agreed to terminate its contract with the ground handler at Tan Son Nhat and Da Nang Airports.

Both sides will discuss measures to address their remaining issues before the termination of the contract, which was partly attributed to their issues related to overdue debt payments.

SAGS, a subsidiary of the Airports Corporation of Vietnam, will stop providing its services to Bamboo Airways from 0:00 on January 1, but the carrier’s December 31 flight schedule could linger on into the following day.

The carrier proposed that SAGS provide its services for all Bamboo Airways flights until 4:00 am on January 1 and support the carrier in the shift to a new ground handler, so that passengers would not be affected by the changes.

Fearing that the cessation of SAGS ground services for Bamboo Airways could take a toll on the transportation of air passengers, the Civil Aviation Authority of Vietnam asked both sides to report on their plans about the shift to a new ground handler.

In response, Bamboo Airways said it had found a new service provider, affirming that the shift would leave very little impact on its normal operations.

Findings from Tuoi Tre (Youth) newspaper showed that Pacific Airlines, a member company under Vietnam Airlines Group, would be the next one to offer the ground services to Bamboo Airways.

It is one of the very few Vietnamese carriers that operate a ground handling business.

A Pacific Airlines leader confirmed to Tuoi Tre that it had agreed to provide ground services to Bamboo Airways.

Pacific Airlines is undergoing a major transformation, in which it refreshed its ground services to optimize operations and secure employment for its workforce amid a gloomy economic outlook.

Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!