The Ministry of Transportation has grounded Air Mekong's operating license for failing to to submit plans to resume its operation after nearly two years of inactivity.
The first air carrier to flop in Vietnam was Indochina Airlines, which ran up huge losses and was shut down in 2011.
Air Mekong opened in 2010 only to suspend its operations in March 2013, claiming that it needed to restructure its flight team.
Vietnamese law stipulates that aviation businesses should lose their operating licenses following 12 months of inactivity.
The transport ministry, however, extended the airline’s license till the end of last year, after it filed its restructuring plan and relevant reports with the Civil Aviation Authority of Vietnam (CAAV) last March.
As of December 31, the carrier had failed to submit further reports related to its plans to resume operations, at the request of the CAAV, Tuoi Tre (Youth) newspaper reported on Friday.
The agency also made numerous failed attempts to contact Air Mekong’s attorneys.
CAAV’s chief Lai Xuan Thanh was quoted as saying that his agency and the ministry of transportation tried to help Air Mekong get back on its feet, but received no help from the airline itself.
VietJet Air is now the sole private carrier operating in Vietnam.