Jetstar Pacific in debt of VND180 billion

June 09, 2011 | 10:11

(0) user say

Tran Van Phuc, director of Vietnam Air Petrol Company (Vinapco) claimed that Jetstar Pacific (JPA) owes his company more than VND180 billion ($8.6 million) in backlog payments.

Low-fare carrier Jet star Pacific owes US$8.6 million in overdue payments

>> Vinapco to cough up

>> Indochina Airlines still hit by turbulence

The amount is excluding interest on the debt and now Vinapco has asked JPA to pay everyday for engine fuel for its aircrafts from June 1.

Vinapco has agreed to let the airline pay the debt in installments from now until the end of August, with the condition that JPA submit a bank guarantee letter acknowledging the debt. However, the airline has not yet submitted the same.

Phuc added that his company is suffering from another bad debt from Indochina Airlines to the tune of VND27 billion ($1.3 million).

As a result, Vinapco is reeling under bad debts of over VND200 billion, accounting to 50 per cent of the charter capital of the company.

Phuc said that both the airline company debts threaten his company’s ability to supply fuel to other domestic and international airlines at civil airports in Vietnam.

SGGP

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional