Vietjet increases charter capital to 1,450 billion VND

Vietjet Aviation Joint Stock Company is adjusting its air transport business license because it has increased its charter capital from VND1,000 billion to VND1,450 billion.

This is Vietjet's second charter capital increase in the past 6 months and the 18th change in its Business Registration Certificate since the company was established in 2007.

The Civil Aviation Authority of Vietnam has just requested the Ministry of Transport to re-issue Vietjet's air transport business license due to changes related to the charter capital scale and shareholder structure of this private airline.

Specifically, Vietjet's new charter capital is VND1,450 billion, an increase of VND1,000 billion compared to the most recent adjustment.

This is Vietjet's second increase in charter capital in the past 6 months and the 18th change in its Business Registration Certificate since the company was established in 2007. Previously, in August 2015, Vietjet increased its charter capital from 800 billion to 1,000 billion, and at the same time changed its headquarters to Nhat An Building, 30D Kim Ma Thuong Street, Ba Dinh District, Hanoi.

It is currently unclear whether the reason for Vietjet's capital increase is to mobilize capital to develop its fleet or to contribute charter capital to two aviation infrastructure projects in the form of socialization that the airline is participating in, namely the Cargo Terminal, Cat Bi Airport - Hai Phong and the Passenger Terminal Project - Cam Ranh International Airport.

Previously, at the end of February 2016, Vietjet's leaders said that the airline could conduct an initial public offering (IPO) in the second quarter of 2016.

This is part of Vietjet Air's plan to develop international flights and become one of Asia's leading low-cost airlines.

However, the exact timing of Vietjet’s IPO has not been finalized as it depends on the developments of both domestic and foreign markets. The airline has not yet made a final decision on the amount of capital it wants to raise, but it may offer up to 30% of its shares – the maximum foreign ownership level set by the government.

Vietjet is the first airline in Vietnam to operate under a new generation, low-cost airline model and provide a variety of services for customers to choose from.

Currently, Vietjet is operating 34 A320 and A321 aircraft, conducting nearly 250 flights per day and has transported over 20 million passengers, with more than 47 routes covering destinations in Vietnam and international routes to Singapore, Korea, Taiwan, China, Thailand and Myanmar.

According to Baodautu