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Thursday 9 November 2023

Airline's bank accounts frozen for non-payment of taxes


Remember Bamboo Airways, which launched in Australia with a flourish and departed a couple of weeks ago with a whimper?

Well, it appears the Vietnam-based airline has some serious financial issues to address.

Bamboo Airways has had its funds frozen due to non-payment of taxes, Travel Mole reports.

The news portal says Vietnam tax authorities have blocked access to the airline’s accounts at three Vietnamese banks.

Bamboo has tax arears of VND102 billion (over $AU6 million).

The bank accounts are frozen for 90 days, local Vietnamese media reported.

“Bamboo Airways plans to complete the tax payment in November,” the airline said in a statement.

“The recent payment delays were because we had been focusing on prioritising our customers.”

The Tax Department of Binh Dinh province said: "When [Bamboo] completes its obligations, [we] will ask the banks to remove the lockdown.” 

The airline has reportedly seen several pilots resign due to late salary payments.

A couple of weeks ago it suspended all international flights and is currently in the throes of a business restructuring and hopeful of raising more capital.

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