Former Jetstar Pacific director released, pending trial

TN News

Email Print

The former director of Jetstar Pacific has been released after being kept in custody for nearly nine months for mismanagement leading to losses at the partiall state-owned carrier.

 

Local newswire VnExpress reports that Luong Hoai Nam has been prohibited from leaving his residence and will have to stand trial. It said police have completed their investigations.

 

Nam was arrested on January 7 after state auditors found managers at the firm had been overpaid despite the fact the airline had been suffering losses since its establishment in 1991.

Jetstar Pacific posted cumulative losses of VND1.1 trillion ($59.6 million) at the end of last year, according to the auditors.

The managers were also held responsible for the loss of more than US$30 million related to fuel hedging activities between July 2008 and May 2009.

However, Nam, who submitted his resignation in September 2009 and was relieved of his post on November 10 the same year, is the only person who has been arrested in the case, the news source said.

 

After working at national carrier Vietnam Airlines for 11 years, Nam joined the low-cost carrier in 2004.

 

First called Pacific Airlines, it was renamed Jetstar Pacific in May 2008 under a branding agreement with Jetstar Airways - a subsidiary of Australia-based Qantas Airlines.

More Society News