Vietnam’s Pacific Airlines ceases operations amid unpaid leases

Vietnamese low-cost carrier Pacific Airlines has ceased operations, with its Airbus A320 fleet returned to lessors.

According to a report by Vietnam’s VnExpress news outlet, the airline has handed back all of its leased aircraft.

Flight tracking websites indicate that the carrier is no longer operating, and it is impossible to buy tickets through its website.

FlightGlobal understands that the carrier has been in extreme financial difficulty for some time and is well behind on lease payments.

Pacific Airlines is 98% owned by Vietnam Airlines. Australia’s Jetstar formerly held a 30% stake – while it operated as Jetstar Pacific Airlines – but exited the carrier in 2020, setting the stage for its rebranding.

FlightGlobal has contacted Vietnam Airlines for comment.  

Cirium fleets data suggests that the eight A320s previously in the carrier’s fleet were leased from Aviation Capital Group, Castlelake, China Aircraft Leasing, and BBAM.

The carrier’s failure underlines the ruthless nature of Vietnam’s market, which features intense competition on routes between the three biggest cities of Da Nang, Hanoi, and Ho Chi Minh City, as well as price-sensitive customers.

Another Vietnam carrier, Bamboo Airways, has sharply curtailed operations, including the elimination of its international network in late 2023.

Reports suggest that Bamboo has been reduced to operating just six A320-family jets, whereas 12 months ago it operated 30 aircraft, comprising A320s and A320neos, as well as Boeing 787-9s and Embraer 190s.

By Greg Waldron – Flightglobal.com – March 19, 2024