The Tan Son Nhat International Airport is facing serious overcrowding and being upgraded. Photo by nld
It is said that the airport upgrade project will take at least three years to be finished which means that the Vietstar has to wait for that long.
Vietstar Airlines has been given approval in principle by the government to provide passenger and cargo transport services.
Once officially approved, Vietstar Airlines will become the fifth carrier in Vietnam, joining Vietnam Airlines, Jetstar Pacific, Vietjet Air, and the Vietnam Air Services Co.
Speaking with local media late last year, head of the Civil Authority Aviation of Vietnam, Lai Xuan Thanh confirmed that the government had approved in principle the airliner’s documents.
“It’s now waiting for a final approval,” Thanh said.
CEO of Vietstar Airlines, Pham Trinh Phuong, also told the Vietnam Economic Times at that time that it had met all requirements relating to capital to provide passenger and cargo services and has received in-principle approval and is now waiting for final approval.
Phuong said that if things went smoothly the carrier could complete necessities for launching before the end of 2016.
In March last year the Ministry of Transport proposed the government allow Vietstar Airlines provide passenger and cargo transport services. The proposal was rejected, however, by the Ministry of Finance due to financial requirements contained in Decree 30, which Vietstar Airlines had not met.
Decree 30 requires an airline have at least VND700 billion (USD30 million) in capital, while Vietstar Airlines had only VND625.7 billion (USD27.5 million) as at the end of 2015.
Vietstar Airlines was established in 2010 by the Ministry of Defence, with stakeholders including the Aircraft Repairing Company A41, the Vietnam Air Force, Vietstar Airways, and the Tin Thanh Express Company.
The seven-year-old carrier, which currently has a fleet of five passenger aircraft and two cargo aircraft, including Boeing 737s and Airbus 320s, is expected to carry 500,000 passengers and transport 32,000 tons of freight during its first year of operation.
Once taking off, Vietstar Airlines is expected to focus on domestic routes between northern and southern Vietnam as well as routes to northeast and Southeast Asian countries.
