HCMC - The Ministry of Transport has proposed the Prime Minister approve establishment of Ngoi Sao Viet Aviation Joint Stock Co. several months after the company applied for a license to join the domestic aviation market.
PM approval sought for new airline establishment
By Binh Nguyen - The Saigon Times Daily
HCMC - The Ministry of Transport has proposed the Prime Minister approve establishment of Ngoi Sao Viet Aviation Joint Stock Co. several months after the company applied for a license to join the domestic aviation market.
The Civil Aviation Administration of Vietnam (CAAV) confirmed that the new airline involving a company under the umbrella of the Ministry of Defense planned in its dossier submitted to the aviation authority to provide air taxi service.
Vo Huy Cuong, director of CAAV’s Air Transport Department, did not unveil the chartered capital of the new airline, but told the Daily on the phone that a company was required to have at least VND50 billion (over US$2.5 million) if it wanted to provide such a service on domestic routes.
Cuong said Ngoi Sao Viet’s on-demand flights were different from the domestic services operated by the country’s local carriers, including national flagship carrier Vietnam Airlines, low-cost airline Jetstar Pacific and Air Mekong.
Blue Sky Aviation Joint Stock Co. was licensed last year and expected to commence its on-demand air taxi service using helicopters later this year. This was the fourth private aviation company licensed in Vietnam since VietJet Air received a license from the ministry in December 2007.
As regulated, CAAV forwards a legitimate application for a new airline set-up to the ministry for consideration and the minister will then issue a license to the airline given the Prime Minister’s approval.
Also in the report sent to the Prime Minister last month, the ministry suggested extending licenses for VietJet Air and Indochina Airlines as these private carriers have failed to meet regulations linked to having an air operator certificate (AOC) two years after they were licensed.
The ministry wants VietJet Air to be given one more chance to launch commercial flights before June 30 this year, otherwise the carrier will have its license revoked because it has delayed take-offs for more than three years.
CAAV said VietJet Air was completing procedures for the AOC. But the major challenges of this carrier are about its brand and how to deal with increasing operational costs due to the world’s rising price of crude oil in these recent month.
A barrel of jet fuel was quoted at nearly US$113 as of January 21 on the website of the International Air Transport Association (IATA), up 33.1% compared to a year ago.
The license of Indochina Airlines should have been invalid as it has suspended services for more than 12 straight months. However, the ministry asks the Prime Minister to allow the carrier this year to mobilize funds to pay debts and ensure sufficient chartered capital of at least VND200 billion (around US$10.2 million) as well as to restructure its operations to restart services.
Previously, CAAV spoke out its support for Indochina Airlines’ restructuring plan after this agency received the related dossier late last year.