VI
EN
Sources from the Transport Newspaper report that Vietnam Transport and Tourism Marketing Joint Stock Company (Vietravel) has submitted a proposal to the Thua Thien Hue Department of Transport to establish Vietnam Travel Airlines Company (Vietravel Airlines).
Previously, Mr. Nguyen Quoc Ky, General Director of Vietravel, shared his intention to establish Vietravel Airlines to boost tourism in Hue. According to him, Vietravel will launch an airline operating on a charter flight model.
In fact, Vietravel had previously operated many such flights under contract. In 2018 alone, Vietravel operated nearly 300 charter flights to transport passengers under charter agreements with airlines such as Vietnam Airlines, Vietjet, and Jestar Pacific. According to a Vietravel representative, the company's transportation services are already substantial, so Vietravel needs to be more proactive and professional.
According to current regulations, in order to operate flights, Vietravel must first receive the government's approval for the aviation project investment, similar to the case of Bamboo Airways recently.
Vietravel is one of the travel companies with a large market share in the tourism industry.
Subsequently, Vietravel will have to continue carrying out the procedures as stipulated in Government Decree 92, which regulates conditional business sectors in the field of civil aviation. It is known that the Ministry of Transport is also proposing amendments to this decree to remove the condition of "conforming to the aviation transport development plan".
This also means that to obtain an air transport business license, investors only need to meet the conditions regarding the plan to ensure the availability of aircraft for operation, organizational structure, capital, business plan, and product development strategy as stipulated.
In addition, the minimum capital required to establish and maintain an air transport business has been adjusted to ease the burden on investors.
According to the Ministry of Transport's proposal, an airline operating up to 10 aircraft will need a minimum of 300 billion VND; from 11 to 30 aircraft, it will need 600 billion VND; and operating more than 30 aircraft will need 700 billion VND. This minimum capital requirement does not differentiate between airlines operating purely domestic routes or those with international routes.
