Pacific Airlines must return all aircraft

Pacific Airlines had to return all aircraft due to failure to reach an agreement with the lessor, along with internal financial difficulties.

VnExpress sources said that Pacific Airlines - a subsidiary of Vietnam Airlines, has no more planes after having to pay all the leaseholders. During this time, some of the airline's flights have had to change their plans or temporarily stop operating.

Since the second half of last year, the airline has been asked by its partners to return aircraft due to failure to comply with lease payment agreements.

Late on March 18, a representative of Pacific Airlines confirmed that the airline "is restructuring its fleet and route network to increase operational efficiency."

According to this restructuring roadmap, the low-cost airline will lease aircraft from Vietnam Airlines to optimize resources. Most likely, the airline will receive 3 aircraft from Vietnam Airlines. This is also the minimum condition for an airline to maintain its business license in the industry.

In addition, Pacific Airlines will receive support and coordination from the national airline in sharing some infrastructure and resources to serve passengers (such as check-in counters and ground service facilities).

Pacific Airlines' return of all aircraft could make the domestic aviation market more difficult in the coming time, especially during the peak summer season when the supply of seats is not enough to meet passenger demand.

Domestic airlines are also in dire need of aircraft. Vietnam Airlines and Vietjet have had to stop operating more than 30 A321s - the main aircraft in the domestic market - for engine maintenance and repair. Meanwhile, Bamboo Airways has reduced its fleet by more than 20 aircraft compared to last year after restructuring. Last year, Vietnamese airlines had more than 230 aircraft, but now there are only about 170.

During the recent Tet peak period, the lack of airplanes, which reduced supply, was also one of the reasons why air tickets were scarce and expensive.

According to the leader of a domestic airline, it is not easy to rent more aircraft in the context of high demand in the world, pushing up prices. In addition, aircraft owners could previously defer or postpone rental payments for airlines facing financial difficulties due to the pandemic. But now they will immediately reclaim the aircraft if the airline is late in paying.

A representative of Pacific Airlines said the airline will soon restore its flight schedule. Customers who have purchased tickets will be notified of the new flight schedule, or transferred to Vietnam Airlines flights.

Pacific Airlines, founded in 1991, is the first joint-stock airline in Vietnam. This low-cost airline has been struggling for many years. In 2018-2019, the airline made a profit of tens of billions of VND, but then returned to losses due to the impact of the Covid-19 pandemic. In 2022, the airline lost nearly 2,100 billion VND, a decrease of more than 210 billion VND compared to the previous year.

After receiving all shares from Qantas shareholders in 2022, Vietnam Airlines owns over 98.8% of Pacific Airlines. Since then, the national airline has been looking for new investors for this low-cost airline and has also attracted interest from several parties. However, divestment from Pacific Airlines has not been possible due to some regulations and the unfavorable aviation market in the past few years.

Mr. Tu

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