Vietnam to Have Additional Airline

Vietnam to have additional airline

HANOI, May 27 (Xinhua) — The Vietnamese government has allowed the establishment of a new private airline, according to local newspaper Saigon Liberation on Tuesday.

The government has asked the Ministry of Transport to license the Air Speed-Up Corporation owned by Vietnamese musician Ha Dung.

With the license, the Air Speed-Up with chartered capital of 200 billion Vietnamese dong (VND) (12.5 million U.S. dollars) will become the country’s second private airline after Vietjet Air.

The Air Speed-Up plans to conduct domestic flights mainly in the north-south route in the first five years.

Now, Vietnam has three operational domestic carriers, including Vietnam Airlines which holds a domestic market share of over 80 percent, joint-stock Jetstar Pacific Airlines, and Vietnam Air Services Company, an affiliate of Vietnam Airlines.

Vietnam’s aviation market is expected to grow 12-14 percent annually in the 2006-2010 period, 9-11 percent in the 2010-2015 period, and 10-12 percent in the 2015-2020 period, according to the Civil Aviation Administration of Vietnam.

(c) 2008 Xinhua News Agency – CEIS. Provided by ProQuest Information and Learning. All rights Reserved.