Vietnam to suspend considering new airlines establishment due to public health crisis
Vietnam’s aviation sector was hit badly by the Covid-19 epidemic. Photo: baodautu.vn
Vietnam’s aviation sector was hit badly by the Covid-19 epidemic that forced the government to ban travel to limit the spreading of the virus. Several domestic air carriers reported losses in the first quarter.
The time for the sector to recover fully has not been determined. Therefore, the ministry temporarily suspends granting licenses to new airlines, Civil Aviation Authority of Vietnam says, citing information from the meeting of the transport sector.
Minister of Transport Nguyen Van The asked the authority to draft a document and seek approval from the prime minister on suspension.
The new face in the Vietnamese aviation market, Vietravel Airlines, is completing the last procedures to get ready for its first flight scheduled for 2021 when the COVID-19 pandemic situation settles down.
Ministry of Transport assigned the authority to instruct Vietravel Airlines to complete the application file for license and evaluate the application in accordance with regulations.
The airline which is set to take the first flight in early 2021 celebrated its official establishment on May 7 by announcing Prime Minister Nguyen Xuan Phuc's approval of its investment policy.
In Vietnam, there are currently 5 airlines that have been granted air transport business licenses which include Vietnam Airlines, Jetstar Pacific, Vasco, Vietjet, and Bamboo Airways.
Besides Vietravel Airlines, there are currently 2 airlines that are “queuing up" to get government permission to join the business, including Thien Minh Aviation Joint Stock Company (Kite Air) and Vietstar Aviation Company Limited ( Vietstar Air).
► Bamboo Airways raises charter capital to nearly $300 million
► Vietjet Air reports 1Q loss at $42mln on coronavirus, beating expectation
► FLC Group reports $81 million after-tax loss in 1Q from $345,500 profit
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