New airline to take flight in Vietnam’s booming aviation market

By , Ky Duyen, Vuong Anh   March 28, 2016 | 07:58 pm GMT+7

Vietstar, a new passenger and cargo airline managed by Ministry of Defense, is awaiting the green light from the government to join the growing ranks of Vietnam’s carriers.

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Vietstar is seeking the government issued air transport business license to enter the passenger and cargo air transport market with a fleet comprised of three Boeing 737s and one Airbus A320.

The airline was founded in 2010 under Ministry of Defense. It has already received a general air business license from the Civil Aviation Authority of Vietnam which allows it to provide civil and military services.

Under the general air busines license, the airline may use small aircrafts to offer air taxi services to individual customers. It may also transport troops and military equipment, as well as conduct flight surveys. 

Vietstar aims to become the first passenger airline in Vietnam to also use dedicated commercial air freighters.

According to the airline's business plan and development strategy for the first five years of operation, it will focus on the domestic North – South corridor, and international destinations in the Northeast and Southeast Asian regions.

The financial report dated December 31, 2015 shows that Vietstar's equity was valued at VND652.7 billion ($29.2 million). According to a 2013 government decree, the minimum capital required to establish and maintain an air transportation business is VND700 billion.

Vietnam has four civil carriers: Jetstar Pacific, Vietjet Air, national carrier Vietnam Airlines and the recently restructured Vietnam Air Services Company (VASCO).