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Monday, June 24, 2024

PM orders restructuring of Kite Air

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HCMC – Prime Minister Nguyen Xuan Phuc has asked the Ministry of Transport to carefully restructure the new airline Kite Air.

The ministry was assigned to ensure that Kite Air complies with regulations for the sustainable development of the aviation sector, especially as the sector is being negatively affected by the coronavirus pandemic, and to report on its progress to Deputy Prime Minister Trinh Dinh Dung.

The Ministry of Planning and Investment on March 2 submitted to the prime minister a proposal to establish the carrier Kite Air, run by Thien Minh Aviation JSC.

The new airline expects to operate six ATR 72 turbo-prop planes or similar aircraft in the first year of operations. The number of airplanes to be used by the firm will be increased to 25 by the sixth year of operations, including 15 Airbus A320s and A321s.

Total investment in the airline project is VND5.5 trillion, with VND1 trillion in equity (18% of the total investment) and VND4.5 trillion in loans. The carrier will be headquartered at Chu Lai Airport in Nui Thanh District, Quang Nam Province.

Even if the proposal is approved, the establishment of a new airline at this time is a risky decision for Thien Minh Aviation JSC as the Vietnamese aviation sector is struggling in the coronavirus pandemic and will need at least three to six months to recover after the pandemic is contained.

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