An airplane of Hai Au - a subsidiary company, specialised in providing sightseeing services of Thien Minh Aviation Joint Stock (Photo courtesy of Thien Minh Aviation Joint Stock)Hanoi (VNA) - The Ministry of Planning and Investment (MPI) has askedPrime Minister Nguyen Xuan Phuc not to approve plans to open a new airline in Vietnam.
Canh Dieu(Kite) Air hoped to launch in the second quarter of 2020, but the project wasput on hold because of the COVID-19 pandemic.
Now the MPIhas informed the PM that because the domestic aviation industry was facing somany difficulties, now is not the time to start a new airline.
The CivilAviation Administration of Vietnam (CAAV) has said the domestic aviation marketthis year is expected to only receive 42.7 million passengers, a decrease of 46percent compared to 2019.
Vietnameseairlines now have 214 aircraft, but they have only operated domestic routes andsome international cargo flights with the exploitation rate of less than 50 percentcompared to their capacity, the administration said.
The Ministryof Transport also asked the Government to only approve the Canh Dieu Air after2022 when the domestic aviation market recovers.
The ministryalso said Canh Dieu Air’s plans were drawn up in 2018-2019 when the domesticaviation market developed with the growth rate of 13-20 percent each year.
The project,worth 5.5 trillion VND (237 million USD), was invested by Thien Minh AviationJoint Stock Company.
The originalplan would have seen six ATR72 aircraft operating flights within Vietnam. Itsfleet is expected to increase to 30 planes, including 15 ATR72 and 15 A320/321or equivalent aircraft, by 2025./.
VNA
