Air Mekong has had its business license revoked by the Ministry of Transport because it failed to resume business after a trading hiatus in 2013.
Air Mekong aircraft
The airline, which began operations in 2010 and opened eight domestic routes, announced a suspension of operations in March 2013 so it could restructure. Its air operator's certificate expired.
Air Mekong submitted two plans in March 2014 to return to business and to extend its operator's certificate. The Ministry of Transport extended Air Mekong's license until the end of 2014 and requested the airline to submit a more detailed plan for the restructuring. But Air Mekong subsequently failed to fulfill the conditions within the given timeframe.
Unable to contact the airliner's legal representative, the Civil Aviation Authority asked the Ministry of Transport to revoke Air Mekong's license.
Previously, two private airliners -- Indochina Airlines and Trai Thien Airlines -- had to shut down after incurring losses. Vietnam has four active commercial airliners -- Vietnam Airlines, Jetstar Pacific, Vasco and VietJet Air.
Under regulations, an airline loses its licence if it halts business for 12 consecutive months or is unable to maintain minimum capital requirements for three years.