The Viet Nam’s Civil Aviation Administration has granted a licence to Vietstar Airlines which will be operating tourist and private flights along domestic and international routes.

Vietstar Airlines is a VND400 billion (US$19.51 million) joint venture between the Aircraft Repairing Company A41, the Viet Nam Air Force, Vietstar Airways and the Tin Thanh Express Company.

Nguyen Thanh Binh, Ground Operation Manager of Vietstar Airlines, told the Viet Nam News that the airline would open hangers for aircraft maintenance and overhauls during November, kicking of flights in December.

“Flight services for entertainment, emergency, film making, photography, geological survey and rescue operations are not available with other airlines in Viet Nam,” Binh said.

“With more than 80 million people and a more stable economy, we believe that Vietstar will succeed in providing services to the growing needs of the market”.

Vietstar Airlines will become the country’s seventh domestic airline following Vietnam Airlines, Jetstar Pacific, Vasco, Vietjet, Air Mekong and Indochina Airlines.

Though the country has opened its sky to both national and private airlines, private carriers still face difficulties in competing with the national carriers.

Excluding national fag carrier Vietnam Airlines, Air Mekong is the only private airline operating healthily amidst current tough market conditions. Indochina Airlines, already defaulted on its debut and Jetstar Pacific have debts with the Viet Nam Air Petrol Co (Vinapco).

Industry insiders have said that fledgling private airlines would struggle to survive in a market with a modest air transport volume of less than 14.1 million passengers and 176,000 tonnes of freight per year, even though the local sector is forecast to become the world’s third fastest international passenger and freight transport market during 2011-20.

Source: VNS