Third private airline seeking operation license

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Third private airline seeking operation license

Wednesday, 08 October 2008 11:32

The Civil Aviation Administration of Vietnam (CAAV) has finished checking the application for the establishment of Mekong Aviation, which has the planned chartered capital of VND200bil, meeting the requirements set by the Aviation Law.

If the application is approved by the Ministry of Transport, Mekong Aviation will be the third private airline in Vietnam. The other two are Vietjet Airlines and Speed Up.

Mekong Aviation is scheduled to become operational in 2010 and will consider Noi Bai Airport as its base airport. The airline plans to have a fleet of 10 aircrafts to carry passengers on domestic routes, including Hanoi – Phu Quoc, Hanoi – Nha Trang, and Hanoi – Can Tho. The aircrafts could be Bombardier, Embraer or ATR 72 which have less than 100 seats.

Prior to this, the second private airline in Vietnam, Speed Up, in Musician Ha Dung’s name, was licensed in May 2008. The air carrier is expected to make its first flight in 2009 and provide domestic flights from Hanoi, Ho Chi Minh City and Da Nang. The airline will also consider providing international flights when conditions prove to be favorable.

The first private airline, Vietjet Air, was licensed in December 2007. The first commercial flight, from Hanoi to Ho Chi Minh City, was initially scheduled to be taken at the end of 2008. However, the airline has announced a delay to the flight plan for four months due to financial problems caused by the increase in fuel prices.

According to CAAV, many institutional and individual investors have expressed their willingness to jump into the aviation sector. T&C Investment Joint Stock Company on September 13, 2007 sent a letter to CAAV, discussing their plan to set up a private airline. However, CAAV has not received the detailed plan on the private airline establishment from the company. In May 2007, Saigon Airlines Company also sent documents, expressing their wish to establish a private airline.

Under the Decree No 76 dated May 9, 2008, an airline needs to have at least VND500bil to provide international flights, and VND200bil to provide domestic flights. Airlines also have to meet many other strict requirements, including ones relating to flight safety and aviation security.

Vietnam now has five airlines which have been operational or received licenses, including Vietnam Airlines, Jetstar Pacific Airlines, VASCO, Vietjet Air and Speed Up.

(Source: VNE)

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