Tuesday, March 11, 2008

Vietnam’s second private airline awaits permission for takeoff

Vietnam’s aviation authorities said Sunday an application to establish a new private air carrier is pending the transport ministry’s approval.

Deputy Head of the Civil Aviation Administration of Vietnam (CAAV) Lai Xuan Thanh said the new carrier, Air Speed Up, had a registered capital of VND200 billion (US$12.5 million).

If approved, the company would become the second private airline in Vietnam after Vietjet Air, which has just received official permission to begin operation recently.

Air Speed Up plans to launch its first flight this year and will only offer domestic flights in its first five years of operation. The airline will provide low fares by minimizing service costs, said company director Ha Dung.

The other three air carriers in the country – Vietnam Airlines, Pacific Airlines, and Vasco – are all fully or partly state-owned.

Governmental regulations require that an airline company have a total capital of at least VND200 billion ($12.5 million) to operate domestic flights and VND500 billion ($31.25 million) in order to provide international flights.

Source: Tuoi Tre