Reports from Ho Chi Minh City indicate that Jetstar Pacific is continuing to battle headwinds in Vietnam.
In August 2010, Vietnamese authorities detained the former CEO of Jetstar Pacific and stopped the airline’s chief operating officer and chief financial officer from leaving the country while an investigation was under way into multi million-dollar fuel hedging losses.
Qantas is a minority shareholder in Jetstar Pacific which last month was called on by the Civil Aviation Authority of Vietnam to pay up a debt of US$8.2 million the airline allegedly owes to Vinapco, the state fuel supplier.
Vinapco sourced approval from government agencies to stop supplying fuel to Jetstar.
Local reports indicate Jetstar has sent Vinapco a proposed lengthy debt payment scheme and asked the fuel company to continue supplies.
“Private airlines can hardly compete with state-owned giant Vietnam Airlines which holds an 80 percent market share,†said Air Mekong chairman Doan Quoc Viet.
Air Mekong is the single private airline operating healthily in current tough market conditions.
