Air Mekong is still being asked to pay a debt of 5.5 billion VND after 10 years of stopping flying.

Saigon Ground Services Corporation (HOSE: SGN) announced on August 18 that it had received a decision to enforce the judgment at the request of the Civil Judgment Enforcement Department of Phu Quoc City against Mekong Airlines Corporation.

Accordingly, Mekong Aviation Joint Stock Company (address: Hamlet 3, Hamlet 7, An Thoi Ward, Phu Quoc City, Kien Giang Province) must be responsible for paying SGN the outstanding debt of more than 5.5 billion VND.

From the date of the judgment enforcement request of the judgment creditor (for amounts payable to the judgment creditor) until the completion of the judgment enforcement, Mekong Airlines JSC shall also bear interest on the amount remaining to be enforced at the interest rate prescribed in Article 357 and Article 468 of the 2015 Civil Code, unless otherwise provided by law.

"The person who must execute the judgment has the responsibility to voluntarily execute the judgment within 10 days from the date of receiving or being properly notified of this decision," the SGN document clearly stated.

Regarding the debt, SGN said that before, when the company was a branch of Vietnam Airports Corporation (ACV), it provided ground services to Mekong Airlines JSC. Since 2013, this company has stopped operating and still owes SGN more than VND5.5 billion.

On January 1, 2015, SGN officially operated under the model of a joint stock company after completing equitization and continued to inherit and recover the above debt.

As of December 31, 2015, in accordance with the provisions on provisioning, the debt of Mekong Airlines JSC was approved by the Board of Directors to be provisioned at 100% on the 2015 financial statements.

After that, the company continued to monitor and carry out debt collection procedures. On August 14, 2023, the Civil Judgment Enforcement Office of Phu Quoc City issued the above decision.

Licensed to operate air transport in October 2008, Mekong Airlines made its first flight on October 9, 2010, using a fleet of Bombardier CRJ900 aircraft.

However, due to the small aircraft capacity (only 90 seats) combined with the economic recession and fierce competition on ticket prices with other competitors, the airline lost thousands of billions of VND in the first 3 years of operation.

This private airline stopped flying in early March 2013, citing fleet restructuring. Due to the lack of activity, on January 6, 2015, the Ministry of Transport decided to revoke the Air Transport Business License granted to this airline.

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