Pacific Airlines Aviation Joint Stock Company (Vietnam)

Jetstar Pacific Airlines (the subject's previous trademark) is considered as Vietnam's first low-cost airline. Pursuing the objective of providing cheap flights every day, Pacific Airlines currently operates the services of carrying passengers and goods to domestic and foreign destinations.In June 2022, when Qantas announced its withdrawal from this entity, Pacific Airlines was restructured, parting with the Jetstar brand and bringing in a new brand identity, and the same ticketing system as Vietnam Airlines.According to a report of Vietnam Airlines JSC, the subject's parent company currently operates three airlines, namely Vietnam Airlines, Pacific Airlines (the subject) and Vasco. As of June 2022, Pacific Airlines' financial situation was very serious with cash flow shortage, large overdue debts threatening to be insolvent and terminated operation.Implementing the approved restructuring policy of Pacific Airlines, Vietnam Airlines said that the corporation will carry out the restructuring and divestment at Pacific Airlines. However, the investor selection process encounters many difficulties in terms of mechanisms and policies according to current regulations for state-owned enterprises and the company is continuing to report to the competent authorities for handling. During this period, Pacific Airlines continued to organize minimal exploitation activities, streamlining the apparatus to take advantage of common resources with Vietnam Airlines Group to reduce costs and increase efficiency. The tax liabilities data also partly shows the financial difficulties this company has faced.The outbreak of the Covid-19 pandemic has severely impacted businesses operating in the airline industry. Even, HoChiMinh Stock Exchange (HoSE) noted the possibility of delisting Vietnam Airlines JSC's HVN shares (the parent company's shares) because this company's accumulated losses exceeded the owner's contributed capital.