Vietjet Thailand has reaffirmed that the asset freeze imposed on Vietjet Group's operations by a UK court should not affect the airline's operations in Thailand, as it is established as a separate entity and air operator.
The Civil Aviation Authority of Thailand (CAAT) reported it has not detected any liquidity issues at the local unit of the Vietnamese low-cost carrier.
Vietjet was ordered by the UK High Court to freeze its global assets after repeatedly failing to repay more than $250 million in debt to FW Aviation Holdings, an aircraft lessor.
The dispute arose after the airline was unable to pay leasing fees for four Airbus aircraft leased from FW Aviation Holdings, although it continued to operate them during the pandemic.
The court order reportedly covers the airline’s existing fleet, new aircraft orders, maintenance reserves, lease deposits and ticket sales from agents.
The issue raised concerns among Vietjet Thailand passengers about possible impacts, particularly flight cancellations, while the airline’s chief executive in Thailand could not be reached for comment.
A source from the airline briefly reaffirmed to the Bangkok Post that the court decision involving Vietjet Air would have no operational impact on Vietjet Thailand, as the two are separate entities with different air operator certificates (AOCs).
According to Vietjet, the airline holds a roughly 9% stake in Vietjet Thailand, a Thai-registered company operating under Thai Vietjet Air Joint Stock Co Ltd, with 52% of its investment held by Thai nationals.
“In principle, Thailand’s capacity will not be affected by these issues, so the airline continues to operate flights as normal,” said the source.
ACM Manat Chavanaprayoon, director of the CAAT, said the agency has a duty to regularly monitor the liquidity of airlines in Thailand to prevent any impact on passengers.
The CAAT has not detected any issues with Vietjet Thailand’s operations and has no plans to ask the airline to explain the situation, he noted. To operate flights legally in Thailand, an airline must hold an AOC and be a Thai-registered company.