Vietnamese Prime Minister Nguyen Tan Dung has agreed to the establishment of the Vietjet Aviation Joint-Stock Company (Vietjet Air), the country's first private air carrier.
Vietjet Air was established with VND600 billion (around US$37.5 million) in registered capital from Vietnamese shareholders. The low-cost carrier is to operate in airline transport and support activities.
A Vietjet spokesperson said the company will lease three Boeing 737-800 or Airbus A320 jets for domestic and international routes of one to three hours in length.
It plans to initially fly between Ha Noi, Ho Chi Minh City and Da Nang and soon open fights to Hong Kong, Bangkok, Singapore and southern cities in China, Korea and Japan.
The carrier’s maiden flight is planned for next month.
Viet Nam now has three national airlines, Vietnam Airlines, the national flag carrier, Pacific Airlines, 30 percent owned by Qantas Airways Ltd., and Vietnam Air Services Company (VASCO).
Vietnam Airlines and VASCO control than 80 percent of the domestic civil aviation market.
