HCMC – The Ministry of Transport has proposed that the Government only approve the establishment of new airlines after 2022 once the aviation market has fully recovered.
No registrations for new airlines have been made this year, but registrations from previous years are still awaiting approval, including Vinpearl Air, Vietravel Airlines and Kite Air. However, the investor in Vinpearl Air has withdrawn the application.
The Government approved the establishment of Vietravel Airlines in March 2020, while the Ministry of Planning and Investment submitted a plan to establish Kite Air to the prime minister for approval, also in March.
However, the Government Office later asked the Ministry of Transport to review plans to establish new airlines as the Vietnamese aviation sector is still struggling under the coronavirus pandemic.
In a report sent to the Government on May 14, the Ministry of Transport estimated that the Vietnamese aviation market will serve only 42.7 million passengers this year, down 46% compared with 2019.
Vietnamese airlines currently own 214 planes but they are operating only domestic passenger flights and a limited number of international cargo flights, meeting less than 50% of their capacity. The ministry forecast that the Vietnamese aviation market will need at least two years to fully recover.
By Lan Nhi