Jetstar Pacific was denounced for neglecting safety regulations while Indochina Airlines got into debts and suffered big losses from its license.

Three years ago there were long queues of investors in order to get licenses for their airlines. As a result from10 applicants only 3 licenses were given. Moreover, there were such talks according to which some investors wanted to pay a huge amount of money to get an approved airline that only subsisted ‘on paper’.

Indochina Airlines was created in such conditions and as a result commercial flights were offered in November 2008. The company became the first private airline that provided flights. But after a year Indochina Airlines run into debts. Because of passengers’ scarcity all the flights were cancelled until November 25. Now it is hard to predict the future of the airline company.

But still the question arises, why Indochina Airlines underwent losses while the internal aviation market went up, despite the economic recession.

As for Jetstar Pacific, its passenger totals went up by 30 percent this year and the seat number increased by 80 percent. But, unfortunately, the company’s revenues are not able to cover expenses as Jetstar Pacific made reductions of ticket prices.

Jetstar Pacific became a serious competitor to the national company known as Vietnam Airlines as it augmented its Hanoi-HCM City service, i.e. it has 11 roundtrip flights per day. But, nevertheless, the company has its own problems. Jetstar Pacific has to refuse using “Jet” and the orange star in order passengers could not confuse it with the Australian air company. Also Qantas purchased shares of Jetstar.

Two foreign engineers were discharged by JP, they denounced the company for cutting corners on aircraft maintenance.

According to some analysts, Vietnam Airlines has already achieved success among its competitors, for that reason the company should anticipate its future without firm competition on internal routes.