Indochina Airlines might mobilize additional VND400 billion to maintain its operation

Indochina Airlines’ shareholders have been convinced to pump an additional VND 400 billion into the Airline to maintain its operation.
Legal representative of Indochina Airlines, Ha Hung Dung, said that the company had submitted financial reports and capital plans to the Aviation Department of Viet Nam. It is a must for the airlines to resume its operation on either 15th or 25thDecember before the deadline of its license on January 1st, 2010.
The report says that Indochina Airlines rents two Boeing 737-800, containing 165 seats, for the upcoming business on two routes, Hanoi – Ho Chi Minh City and Ho Chi Minh City – Da Nang and promised to clear its debts before 2010.
The investment of additional VND 400 billion doubles the required minimum chartered capital set for an airline which operates less than 10 aircrafts within domestic routes, such as Indochina Airlines.
The Aviation Department, however, still maintains its reservation to withdraw Indochina Airlines’ license by December 15th if they do not meet all required flying standards as well as financial requirements by the deadline of January 1st, 2010 as previously, Indochina Airlines had many times failed to keep its promises.
Vice Minister of Transport, Pham Quy Tieu, said that the Ministry had agreed with the Aviation Department’s decision.
Last month, the airlines had to cancel dozens of flights due to the lack of operation costs and the last aircraft was returned to renter in late November to reduce costs further.
Ha Hung Dung, however, confirms his determination to maintain the airline and is convinced that business is always tough at the beginning.
Experts say that Indochina Airlines might fail Ha Hung Dung’s expectation but it was not too bad in the first five-months of operation since 80% of flights were in use while the normal figure is 30% only.