Prime Minister Nguyen Xuan Phuc has issued principle approval for the establishment of Vietravel Airlines operated by local tourism firm Vietravel Group.
Around VND700 billion (USD30.43 million) has been invested in the airline with an operation timeline of 50 years. The airline will be headquartered at Phu Bai International Airport in the central province of Thua Thien-Hue.
Vietravel Airlines will be headquartered at Phu Bai International Airport in the central province of Thua Thien-Hue
The airline is scheduled to conduct its first flights early next year.
The Thua Thien-Hue People’s Committee has been assigned to instruct and supervise project implementation.
Meanwhile, the Ministry of Transport is responsible for collecting suggestions from concerned ministries during the project appraisal and licensing process.
Vietravel Airlines has targeted to use 55% of its flight capacity to meet around 35-40% of Vietravel Group’s passenger demand, while the remainder will serve other customers through charter flight service.
Experts, however, warned that being headquartered at Phu Bai International Airport is not suitable for charter flights as passengers of charter flights are often concentrated at big airports such as Noi Bai, Tan Son Nhat, Danang and Cam Ranh.
At present, Vietnam is home to Vietnam Airlines, budget carrier Jetstar Pacific Airlines, Vietjet, Vietnam Air Services (VASCO) and Bamboo Airways. Two others - Kite Air and Vietstar Air are waiting for operational authorisation.