Vietstar Airlines will become the seventh airline in Vietnam if licensed.
The Ministry of Transport (MoT) has proposed the Prime Minister issues a license for Vietstar Airlines to join the country ever-growing aviation market.
Vietstar Airlines will have charter capital of VND800 billion ($35.88 million) and will conduct both passenger and cargo flights, according to Deputy Minister of Transport Nguyen Nhat.
In its first five years the airline plans to use three aircraft, either Boeing 737s or Airbus 320s, with it already having an agreement to lease three Boeing 737s from an aircraft leasing company.
Vietstar has a clear business plan and development strategy, the Ministry of Transport noted, with feasible targets. In its first five years it will target markets in the north and south of Vietnam and also Northeast Asia and Southeast Asia.
As at December 31, 2015 the owner’s capital contribution to the airline was VND652.7 billion ($29.26 million); VND47.3 billion ($2.12 million) less than the required VND700 billion ($31.38 million).
Vietstar, a State-owned enterprise under the Ministry of Defense, was established in April 2010 and is headquartered in Ho Chi Minh City with an operational base at Tan Son Nhat International Airport.
There are now six airlines licensed in Vietnam: Vietnam Airlines, Jetstar Pacific Airlines, Vasco, Indochina Airlines, Air Mekong, and Vietjet Air.