Vietnam Airlines shakes hands with Techcombank to form new carrier from restructured VASCO.
Vietnam Airlines has set up a low-cost airline based on the restructuring of its subsidiary Vietnam Air Services Co (VASCO) in a joint venture with the Vietnam Technological and Commercial Joint Stock Bank (Techcombank).
The national flag carrier said it will hold 51 per cent of the venture, contributing ATR72-500 aircraft, spare engines, and other assets, while Techcombank will contribute 49 per cent in cash. The assets will be valued by the Ministry of Finance’s Valuation and Finance Consultancy JSC(VVFC).
A representative from Techcombank will be appointed as VASCO’s Chairman while the CEO will be from Vietnam Airlines. VASCO will continue to operate ATR72 aircraft on domestic routes not accessible by jet aircraft, such as Con Dao Island, Ca Mau, Rach Gia, and Dien Bien.
The move expresses Vietnam Airlines’ efforts to regain domestic market share from the low-cost Vietjet Air. Vietnam Airlines currently holds a 70 per cent stake in another low-cost carrier, Jetstar Pacific Airlines.
When established in 1987 VASCO only operated small aircraft such as AN2, AN30 and King Air B200, conducting aerial photography, geological surveys, domestic cargo transport, flight training, emergency medical services, and search and rescue missions.