Vietnam's transport ministry on Monday officially annulled the licenses of two private carriers, including Indochina Airlines, because they were inactive for a long time.
The Ministry of Transport announced its decision about two days after local media reported that Indochina Airlines' license had been revoked.
The airline, which was the first private carrier to operate flights in Vietnam, acquired the license in May 2008, but halted all its activities on Oct. 31, 2009 due to financial difficulties.
It is also facing a lawsuit in which Asia Commercial Bank asked it to pay the debt of US$1.3 million, according to the ministry.
Meanwhile, Trai Thien Air Cargo, which was the first private carrier to be licensed to transport cargo in Vietnam, has never launched a flight since it was licensed in June 2008.
The carrier, which registered in Vietnam with an investment of VND500 billion (US$23.7 million) has had its license revoked as well, the ministry said.
Trai Thien Air Cargo is being sued by its employees who said they haven't been paid salaries and social insurance in a long time, VnExpress reported.