VietNamNet Bridge – The Ministry of Transport’s recent report on the restructuring, privatization of its enterprises shows that Jetstar Pacific’s financial situation is very difficult, with accumulated losses of nearly VND2.5 trillion ($120 million).

 

 

This content is presented in the financial report of the Vietnam Airlines Corporation. Accordingly, after receiving the status quo of the right to represent the state capital in Jetstar Pacific from early 2012, Vietnam Airlines found that this low-cost airline is in very difficult conditions.

"Jetstar Pacific’s financial situation is very difficult, with accumulated losses over VND2.476 trillion, negative equity, large overdue debts, in addition to tax arrears and tax penalty of VND302 billion ($15 million) related to contractor tax, personal income tax of its foreign employees," the report says.

Vietnam Airlines said it had sent a written report to the Prime Minister. Deputy Prime Minister Vu Van Ninh has assigned the Ministry of Finance to handle the case. The Office of the Government is consulting relevant ministries to report to the Prime Minister to direct this problem.

The precursor of Jetstar Pacific is Pacific Airlines, founded by Saigontourist and Vietnam Airlines joined as an owner, holding up to 86 percent of the capital in 2004. Then the capital of Vietnam Airlines in Pacific Airlines was handed over for the State Capital Investment Corporation (SCIC). The turning point of the Pacific Airlines happened in 2007 when the Australian airline Qantas owned 27 percent of the shares in the company and changed its name to Jetstar Pacific. The remaining shares of Jetstar Pacific were held by SCIC and Saigontourist.

In February 2012, Vietnam Airlines took over Jetstar Pacific. In 2012, the company also performed the renovation of the entire fleet. Jetstar Pacific now has six A320 aircrafts. This low-cost airline explores many domestic routes. It has recently opened the routes to Vinh and Buon Me Thuot.

Son Tung