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MPI proposes PM not approve Cánh Diều Air establishment project

Update: August, 31/2020 - 15:12
An airplane of Hải Âu - a subsidiary company, specialised in providing sightseeing services of Thiên Minh Aviation Joint Stock. — Photo courtesy of Thiên Minh Aviation Joint Stock

HÀ NỘI — The Ministry of Planning and Investment has asked Prime Minister Nguyễn Xuân Phúc not to approve plans to open a new airline in Việt Nam.

Cánh Diều (Kite) Air hoped to launch in the second quarter of 2020, but the project was put on hold because of the COVID-19 pandemic.

Now the Ministry has informed the PM that because the domestic aviation industry was facing so many difficulties, now is not the time to start a new airline.

The Civil Aviation Administration of Việt Nam has said the domestic aviation market this year is expected to only receive 42.7 million passengers, a decrease of 46 per cent compared to 2019.

Vietnamese airlines now have 214 aircraft, but they have only operated domestic routes and some international cargo flights with the exploitation rate of less than 50 per cent compared to their capacity, the administration said.

The Ministry of Transport also asked Government to only approve the Cánh Diều (Kite) Air after 2022 when the domestic aviation market recovers.

The ministry also said Cánh Diều (Kite) Air’s plans were drawn up in 2018-19 when the domestic aviation market developed with the growth rate of 13-20 per cent each year.

The project, worth VNĐ5.5 trillion (US$237 million), was invested by Thiên Minh Aviation Joint Stock Company.

The original plan would have seen six ATR72 aircraft operating flights within Việt Nam increasing to 30 planes by 2025. — VNS

 

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