30-Mar-2010 10:59 AM

Viva Macau attempting to resolve issues related to its AOC suspension

Viva Macau stated it would offer full refunds to passengers affected by the carrier's recent flight cancellations (Aviation Record/Bloomberg, 29-Mar-2010). The carrier confirmed that the cancellations related to a dispute with Macau's sole supplier of aviation fuel. Macau Civil Aviation Authority has subsequently terminated the airline's Air Operator's Certificate, due to the increasing number of affected passengers by the carrier's flight cancellations. Meanwhile, Air Macau has ended a sub-concession contract with Viva Macau at the request of the government, and the government confirmed it would pursue repayment of USD25 million in loans made to the carrier between 2008 and 2009 "through legal means". Viva Macau expressed surprise at the action, with the carrier stating it has taken steps, including prepayment of fuel over the past weekend, to maintain its operations. The carrier added that it is "looking forward to communicating with all parties concerned as soon as possible in order to resolve the issue so that we can continue our mission to “bring the world to Macau”".

Viva Macau: "Our shareholders had also offered credit guarantees to the supplier. Unfortunately, no agreement could be reached and therefore flights were stopped unexpectedly. Viva Macau Airlines staff and representatives have been in action to assist affected passengers. We also actively communicate with all parties involved to come up with a solution. Therefore, Viva Macau was deeply surprised to learn that our AOC was revoked without any prior notice. We are continuing our communication with all parties to seek a solution," Beryl Chen, spokeswoman. Source: Aviation Record, 29-Mar-2010.

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