Vietnam Airlines is reportedly gearing up to transfer some of its planes to its subsidiary Pacific Airlines so that it can start flying again. Pacific Airlines is reportedly looking to lease three aircraft from Vietnam Airlines which is the minimum it needs in order to keep its aircraft operator’s certificate.
For some context, Pacific Airlines has no planes because it gave them back to its lessor in exchange for having VND 3 trillion or US$118 million worth of debt cancelled. This was months ago and the airline hasn’t run a passenger flight since. With this in mind, it’s difficult to see passengers lining up to buy tickets on the budget carrier or any organisation, other than Vietnam Airlines, leasing aircraft to Pacific Airlines moving forward.
Moreover, the airline industry in Vietnam has been struggling broadly and as a result, Vietnam Airlines is not in a financially good place itself. In this context, keeping its budget airline aloft simply to maining an aircraft operator’s certificate may not be the most financially prudent move.