Jetstar hits fuel turbulence

June 01, 2011 | 17:13

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Jetstar Pacific, the country’s second largest airline, is facing a difficulty as its fuel supply contract with Vietnam Air Petrol Company Limited ended on May 31^st with the airline owning $8.3 million.

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>> Vinapco to cough up

Vietnam Air Petrol Company Limited (Vinapco) yesterday announced that it would continue supplying fuel to Jetstar Pacific if the airline was guaranteed by a bank or its mother company, State Capital Investment Corporation.

Furthermore, Jetstar Pacific has to pay interest for its debt in accordance with the bank’s lending interest rate. The fuel supplier also gives a deadline on June 4^th to Jetstar Pacific to find a guarantee for its $8.3 million of debt.

Tran Huu Phuc, general director of Vinapco, said if Jetstar Pacific failed to meet the deadline, the company would not sign a new contract. However, he admitted that it was hard for Vinapco to stop supplying fuel to the airline.

This is not the first time Jetstar Pacific has failed to pay fuel fees to Vinapco. Three years ago, Vinapco unilaterally stopped supplying fuel to Jetstar Pacific as the airline could not pay debt. But the government forced Vinapco to continue supplying fuel to Jetstar Pacific even though the airline had not paid all the debt.

By Ngoc Linh

vir.com.vn

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