Having to set aside nearly 3,600 billion VND, ACV plans to sue airlines that owe money

ACV aviation services are providing to airlines including take-off and landing services; passenger services; passenger and baggage security screening; cargo security screening; passenger check-in counter rental, etc.

Last year, despite stepping up debt collection, ACV still admitted that debt collection results and debt repayment plans of airlines still did not meet requirements, requiring service providers to apply more drastic measures to move towards implementing sanctions to handle airlines that violate contracts.

By the end of 2023, ACV had to set aside nearly VND3,600 billion in provisions for short-term doubtful receivables from domestic airlines, accounting for 40% of customer receivables. Most of the amounts arose during the pandemic.

Faced with that situation, ACV has established 5 criteria for initiating a lawsuit and stopping the provision of services to violating airlines to seek opinions from competent management agencies: no debt repayment plan for ACV; not properly implementing the committed debt repayment plan; business results are not at a loss but debt is not paid; new debts arise in 2023; and debt balance is larger than other airlines.

ACV is currently managing, investing in and operating a system of 22 airports nationwide, including 9 international airports (Tan Son Nhat, Noi Bai, Da Nang, Vinh, Cat Bi, Phu Bai, Cam Ranh, Phu Quoc, Can Tho) and 13 domestic airports (Buon Ma Thuot, Lien Khuong, Rach Gia, Ca Mau, Con Dao, Phu Cat, Pleiku, Tuy Hoa, Chu Lai, Dong Hoi, Na San, Dien Bien and Tho Xuan).

Source