The Civil Aviation Authority has just announced the conclusion of a meeting on ACV's recommendations to airlines on debt and debt repayment.
ACV plans to sue airlines for late debt payments
According to Deputy Director of the Civil Aviation Authority Do Hong Cam, the aviation industry's activities have shown signs of improvement recently, but difficulties remain challenges to the recovery of the entire industry.
Appreciating the efforts of businesses in the industry, the Civil Aviation Authority also requested businesses to continue to make more efforts, actively coordinate and support each other for the goal of maintaining and developing operations.
Regarding debts between ACV and Vietnamese airlines, the Civil Aviation Authority assessed that this is an issue subject to the provisions of contracts and current commercial and civil laws.
In the context of the difficult financial situation, the Department acknowledged the efforts of Vietnamese airlines in arranging to pay off debts and finding financial sources to pay ACV in the past time, thereby reducing the accumulated debt of Vietnamese airlines with ACV.
To resolve disagreements and handle outstanding debt payment obligations, the leaders of the Civil Aviation Authority requested ACV and Vietnamese airlines to continue to proactively and actively negotiate and reach agreements to agree on a settlement plan on the basis of sharing risks and benefits, ensuring harmony of rights and obligations of related parties.
In particular, encourage parties to implement debt forgiveness plans, extend old debt repayment schedules and not create new overdue debts. At the same time, prioritize payment of ACV's State collection amounts, ensuring compliance with legal regulations.
ACV was also asked to consider implementing recommendations related to the operations of airlines in the spirit of goodwill, cooperation between businesses, companionship, sharing of benefits as well as risks, with the same vision and goal of overcoming difficulties to survive and develop.
The leaders of the Civil Aviation Authority also assigned relevant functional departments to continue to be proactive, handle according to their authority, research, propose policy mechanisms, report to the Ministry of Transport and the Government for consideration and promulgation of appropriate policies to remove difficulties and obstacles to support and facilitate the operations of businesses in the aviation industry.
By the end of 2023, ACV had to set aside nearly VND3,600 billion in provisions for short-term bad debts from domestic airlines, accounting for 40% of customer receivables. Most of the debt arose during the Covid-19 period.
ACV believes that the debt collection results and debt repayment plans of airlines have not yet met requirements. This requires service providers to apply more drastic measures to move towards implementing sanctions to handle airlines that violate contracts.
This enterprise also established 5 criteria for suing and stopping service provision for violating airlines to seek opinions from competent management agencies.
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