Stop establishing new airlines until 2022
The government has just agreed to stop establishing new airlines until the market recovers, expected in 2022, according to a proposal by the Ministry of Transport.
The Government Office has just announced that Deputy Prime Minister Trinh Dinh Dung "agreed in principle" with the proposal of the Ministry of Transport made in mid-May, after domestic airlines suffered heavy losses due to Covid-19. The Deputy Prime Minister asked the ministry to take responsibility for the recommendations.its role in ensuring the development of the aviation industry.
Previously, explaining this proposal, the Ministry of Transport said that the total Vietnamese aviation market this year is estimated to reach 42.7 million passengers, down 46% compared to 2019 and equal to 50% of the previous forecast. Of which, domestic airlines transported 32.6 million passengers, down more than 40% compared to last year due to the pandemic.
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| Currently, Vietnam has 5 airlines including Vietnam Airlines, Jetstar Pacific, Vietjet Air, VASCO and Bamboo Airways. In the photo: Passengers preparing to go to Phu Quoc at Vinh International Airport. Photo by Thu Huyen |
In the most optimistic scenario, the Ministry believes that it will take two more years for the Vietnamese aviation market index to recover to levels similar to those in 2019. In the immediate future, the agency wants to focus on recovering the domestic and international air transport market and removing difficulties for operating Vietnamese airlines.
Regarding the Kite Air aviation project, Mr. Trinh Dinh Dung assigned the Ministry of Planning and Investment - with the function of being the agency appraising the investment policy - to report to the Prime Minister on the project's investment policy, based on the above recommendation of the Ministry of Transport. Thus, the earliest this airline can get policy approval is 2022.
Currently, Vietnam still has 5 airlines including Vietnam Airlines, Jetstar Pacific, Vietjet Air, VASCO and Bamboo Airways.
Regarding Vietravel Airlines - the unit that the Prime Minister approved in principle to establish in early April, the Civil Aviation Authority has evaluated the valid documents and recommended the Ministry of Transport to carry out the next procedures to grant the license.
