The government will withdraw the business license granted to financially-troubled Indochina Airlines this month, local newswire VnExpress reported Saturday.
The Civil Aviation Administration and the Ministry of Transport have agreed to let the private carrier "die", the newswire said, quoting an unidentified official.
In fact, the airline currently does not have any air transport activities as its flying license was revoked for financial incompetence in September this year.
As for Indochina Airlines' debts, the official said creditors have only one way to pursue them - filing a lawsuit, because the whereabouts of the airline's founder were unknown.
The carrier owes around VND60 billion (US$3.1 million) to service providers, including VND25 billion to the Vietnam Air Petrol Company, known as Vinapco.
In addition, at least 35 air-ticket trading agencies reported that the airline had failed to pay them a total of nearly VND800 million.
Ha Dung, a popular music composer who founded Indochina Airlines, "has disappeared", VnExpress said.
The government granted Indochina Airlines a license in May 2008. The airline opened its service six months later, but operated it for less than a year.