SGN (listed at the HCM City Stock Exchange as SGN) on August 18 announced it received the judgment enforcement decision at the request of the Phu Quoc City’s Civil Judgment Execution Sub-department applied to Mekong Aviation Joint Stock Company (Air Mekong).

The decision clearly says that Mekong Aviation JSC in An Thoi Ward, Phu Quoc City of Kien Giang province has the responsibility of repaying the amount of money that Mekong Aviation JSC still owes to SGN, worth VND5.5 billion.

From the date the judgment creditor makes a written request for judgment enforcement to the day the execution of the judgment is completed, Mekong Aviation JSC has to pay the interest of the amount of money remaining at the interest rate specified in Articles 357 and 468 of the 2015 Civil Code, unless otherwise provided by law.

The judgment debtor is responsible for voluntarily executing the judgment within 10 days from the day of receiving or being duly notified of this decision.

Regarding the debt, SGN said previously when the company was a branch of the Airports Corporation of Vietnam (ACV), it provided ground service to Mekong Aviation JSC. In 2013, Air Mekong stopped operation and owes VND5.5 billion to SGN.

On January 1, 2015, SGN officially began operating as a joint stock company after equitization and inherited the right to collect the above debt.

As of December 31, 2015, following regulations on provisioning against risks, Mekong Aviation JSC’s debts had been provisioned by 100 percent in the 2015 financial report.

After that, the company has kept watch over the debt and procedures to collect debts. On August 14, 2023, the Phu Quoc City’s Civil Judgment Execution Sub-department released the decision.

Obtaining the license to provide air transport service in October 2008, Mekong Aviation JSC provided the first flight on October 9, 2010 with the fleet of Bombardier CRJ900 aircraft.

However, the use of small-size airplanes (with 90 seats), plus the stiff competition with other airlines in airfares and the economy, caused the carrier to incur a loss of trillions of dong in the first three years.

Mekong Aviation JSC said the suspension of operation in early March 2013 was done to spend time on restructuring the fleet. However, it did not resume operation. On January 6, 2015, the Ministry of Transport released the decision on revoking its license to provide air transport service that had previously been granted to the carrier.

Ha Yen