CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / News
Vietnam aviation authority supports Vingroup's airline project
Ngoc Thuy 11:22, 2019/08/22
With a total investment of VND4.7 trillion (US$202.3 million), the airline plans to add six planes on average per year to expand its fleet to a total of 36 by 2025.
The Civil Aviation Authority of Vietnam (CAAV) has reported to the Ministry of Transport (MoT) its approval for the establishment of Vinpearl Air with a fleet of 30 aircraft by 2025, according to the agency’s Director Dinh Viet Thang. 
 
Illustrative photo.
Illustrative photo.
According to the CAAV, the project has proven its feasibility and met all conditions in terms of financial capability and infrastructure for the MoT to submit to Prime Minister Nguyen Xuan Phuc for consideration and approval. 

In a proposal submitted to Hanoi’s Department of Planning and Investment, Vinpearl Air said it plans to start commercial operation by July next year with six narrow-body aircraft. 

With a total investment of VND4.7 trillion (US$202.3 million), the airline plans to add six planes on average per year to expand its fleet to a total of 36 by 2025. 

However, the CAAV noted a fleet of 36 aircraft by 2025 could exceed the market demand and requested Vinpearl Air to scale down its fleet to 30 by 2025. 

Vinpearl Air said it would operate narrow-body aircraft such as Airbus A320, A321 or Boeing 737 and wide-body jets Airbus A330, A350 or Boeing 787. By 2025, the airline targets to have a flight network of 62 domestic and 93 international routes. 

Vingroup previously renamed its subsidiary VinAsia Development Service and Trading to Vinpearl Air with charter capital of VND1.3 trillion (US$56 million).

As per Vietnamese legislation, an airline needs to have registered capital of at least US$56 million to operate up to 30 airplanes on domestic and international routes.

VinAsia Tourism Development JSC, another arm of Vingroup, holds a 45% stake at Vinpearl Air, while businessmen Hoang Quoc Thuy and a senior executive at Vingroup Pham Khac Phuong hold 30% and 25% stakes at the company, respectively.

Vietnam currently has five operational airlines, including Vietnam Airlines, budget operator Jetstar Pacific Airlines (partly owned by Vietnam Airlines), budget carrier Vietjet Aviation, Vietnam Air Services (VASCO) and Bamboo Airways, which flew for first time in January this year. 

In early July, Vingroup and Canada-based flight training provider CAE signed an agreement to cooperate in training pilots and aircraft engineers, with an aim of providing 400 pilots and aircraft engineers every year meeting standards set up by the Civil Aviation Administration of Vietnam (CAAV), US Federal Aviation Administration (FAA), and the European Union Aviation Safety Agency (EASA). 
Comments
Other news
16:36, 2024/04/29
Over US$4.6 billion poured into Vietnamese startups in past decade
Technological innovation has become an important factor driving Vietnam's sustainable economic development amid the uncertain global economic issues.
19:59, 2024/04/23
Nvidia, FPT invest US$200 million in AI factory
Nvidia will help local businesses in accelerate digital transformation and make Vietnam an AI powerhouse.
12:23, 2024/04/08
US-based Rosen Partner to invest in world-class entertainment complex projects in Vietnam
The project is expected to crystallize and showcase Vietnam's unique cultural values to the world.
15:07, 2024/03/13
Foreign capital set to dominate Vietnam’s M&A landscape
The positive trend of foreign capital in the M&A market this year follows the momentum of 2023, where the top five largest deals involved foreign investors.
19:51, 2024/03/04
Samsung to invest US$1 billion annually in Vietnam
Samsung's R&D center currently employs 2,400 engineers, with Vietnamese engineers playing a crucial role in researching AI features for the new Galaxy S24 phone series.
15:05, 2024/02/29
Thai bank acquires Vietnamese finance company
Thailand's fourth-largest bank has agreed to acquire all the equity of Home Credit Vietnam for US$865 million.