Vietnam’s Pacific Airlines ceases operations amid unpaid leases

Vietnamese low-cost carrier Pacific Airlines has ceased operations, with its Airbus A320 fleet returned to lessors. According to a report by Vietnam’s VnExpress news outlet, the airline has handed back all of its leased aircraft. Flight tracking websites indicate that the carrier is no longer operating, and it is impossible to buy tickets through its website. FlightGlobal understands that the carrier has been in extreme financial difficulty for some time and is well behind on lease payments. Pacific Airlines is 98% owned by Vietnam Airlines. Australia’s Jetstar formerly held a 30% stake – while it operated as Jetstar Pacific Airlines – but exited the carrier in 2020, setting the stage for its rebranding. FlightGlobal has contacted Vietnam Airlines for comment. Cirium fleets data suggests that the eight A320s previously in the carrier’s fleet were leased from Aviation Capital Group, Castlelake, China Aircraft Leasing, and BBAM. The carrier’s failure underlines the ruthless nature of Vietnam’s market, which features intense competition on routes between the three biggest cities of Da Nang, Hanoi, and Ho Chi Minh City, as well as price-sensitive customers.<br/>