Private airline VietJet Air said it would operate as a low-cost carrier with its first commercial flight next month.
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The airliner will offer services between Ho Chi Minh City and Hanoi, Ho Chi Minh City and Danang, and Hanoi and Danang in its initial stage of operation.
It will become the second budget carrier in Vietnam, besides Jetstar Pacific.
VietJet Air will also be the second private airline to offer domestic services besides Air Mekong, and the fifth to offer civil flights in Vietnam together with Vietnam Airlines, Jetstar Pacific, Air Mekong and Vietnam Air Service Co.
Earlier the carrier was expected to join hands with Malaysian-based low-cost airline in a joint venture to set up the budget carrier VietJet AirAsia, but the two parties failed to reach an agreement two months ago.
Vo Huy Cuong, head of the aviation department of the Civil Aviation Authority of Vietnam (CAAV), said VietJet Air had leased three Airbus A320 aircrafts from a foreign airline and the first of them was expected to arrive in Vietnam this month.
He was quoted by the Saigon Times Online as saying that the airline was licensed to bring the aircrafts to Vietnam before getting the air operator\'s certificate from CAAV.