Bamboo Airways urged to plan debt payment
The Civil Aviation Authority of Vietnam has asked Bamboo Airways to quickly report its debts, payment plan for aviation service providers and its financial situation.
The order was made after the Ministry of Transport asked the authority to handle the requests related to the carrier’s contract breaches from Airports Corporation of Vietnam (ACV), Vietnam Air Traffic Management Corporation, Saigon Ground Services Company, Hanoi Ground Service JSC and Skypec.
Data from ACV indicated that since May last year, Bamboo Airways has repeatedly made late payments. Its payments were 42 days later than the payment dates agreed upon in their contracts.
The late payments included fees for passenger services that were collected by the airline. Services such as security and baggage screening were provided by ACV.
Specifically, as of March 18, the debt the carrier owed to the corporation totaled VND205 billion, with the overdue debt reaching VND178.7 billion, according to ACV.
Of the overdue debt, fees for services supplied by ACV to passengers accounted for some VND107.3 billion.
The remaining VND71.3 billion was the costs of ground and airport services provided to the carrier by ACV.
ACV has sent 24 notices to the carrier urging it to pay debts promptly, in line with the terms in its signed contracts, but the airline has yet to make any payments, stated the ACV leader. SGT
Bamboo Airways will resume domestic flights from April 16 when the Prime Minister’s social distance order is scheduled to be lifted.
Bamboo Airways, Vietnam’s newest airline, has announced it will reduce the frequency of domestic flights amid the critical time of COVID-19 fight as directed by the Government and Ministry of Transport.