Vietnam’s Pacific Airlines returns all leased aircraft
Tuesday, March 19, 2024, 16:17 GMT+7
Vietnamese carrier Pacific Airlines on Monday confirmed that it no longer has aircraft after it returned all of its leased planes due to its financial difficulties.
It is in negotiations to lease three aircraft from national flag carrier Vietnam Airlines to meet the minimum requirement for an airline to keep its license.
Dozens of check-in desks of the airline at Tan Son Nhat International Airport in Ho Chi Minh City have been closed temporarily.
However, the air carrier has still arranged staff to support passengers.
A Pacific Airlines representative said that the airline’s flights would be rescheduled or canceled.
Passengers who have made bookings will have their reservations transferred to Vietnam Airlines flights instead.
The return of Pacific Airlines’ leased aircraft was attributed to the air carrier’s large overdue debts.
The airline's leadership conducted negotiations with aircraft owners to extend the deadlines for debt payments.
They have mutually agreed to suspend the operation of aircraft under the Pacific Airlines brand in Vietnam starting from this Friday.
Nevertheless, Pacific Airlines is still maintaining its operation and denied rumors of bankruptcy.
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| Pacific Airlines arranged staff to support passengers although it operated no flight on March 18, 2024. Photo: Cong Trung / Tuoi Tre |
It is restructuring its fleet and air route network to increase operational efficiency. It is also seeking potential investors, Pacific Airlines announced on Monday.
The carrier is still offering ground services to Bamboo Airways, another Vietnamese air carrier.
Pacific Airlines was established in 1991 as Vietnam’s first low-cost air carrier.
In 2007, Australian airline Qantas acquired a 30-percent stake in Pacific Airlines and renamed it Jetstar Pacific Airlines.
Vietnam's State Capital Investment Corporation transferred 68 percent of its holding at Jetstar Pacific Airlines to Vietnam Airlines in 2012 and its name was returned to Pacific Airlines.
As Qantas gave all of its 30-percent stake in the budget carrier as a gift to Vietnam Airlines in October 2020, the latter holds a nearly 99 percent stake in the airline.
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