Vietnam Airlines rejects demand to spin off jet-fuel arm

State-owned Vietnam Airlines has objected to Jetstar Pacific Airlines’ appeal to the Government to separate it from its jet-fuel supply arm Vinapco.

In a press release on April 26 the flag carrier claimed the budget airline is not trying to dismantle Vinapco’s monopoly as it claims but taking aim at its self-sufficiency to weaken it.

Vinapco’s monopoly could be broken by allowing other firms to enter the fuel-supply market, Vietnam Airlines pointed out.

Vinapco was fined VND3 billion (US$168,000) in April this year for unilaterally breaking a fuel supply contract with Jetstar Pacific Airlines (formerly Pacific Airlines), forcing the low-cost carrier to cancel all flights on April 14 last year.

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Vietnam Airlines arm’s jet-fuel monopoly could end

By M.Hanh – Translated by Dong Hoai

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