Thien Minh Group’s Kite Air could go into operation in the first quarter of 2020.
The domestically-invested airline has a charter capital of VND1trn (USD43.92m) with its main headquarters at Chu Lai Airport, Quang Nam Province.
The VND5.5trn (USD236.72m) investment includes VND4.5trn in fixed capital. In VND4.5trn, equity’s owner would make up 28% and the remaining are loans from local or foreign credit institutions.
Thien Minh Group CEO Nguyen Manh Tuan said Kite Air would go into operation commercially in the first quarter of 2020 with six ATR 72 planes or aircraft with equivalent capacity. In 2025, they will expand the fleet to 30 planes with 15 ATR 72 and 15 A320/321 planes or equivalent.
ATR 72-600 is their main aircraft because it has 78 seats, 14% more seats than other ATR planes in Vietnam. Moreover, it also consumes less fuel and the turnaround time is only 20 minutes. ATR 72-600 only needs four crew members, two pilots and two flight attendants to operate one to three flights a day.
“Our main markets are Dien Bien, Ca Mau, Kien Giang and Con Dao and Mekong Delta,” Quan said.
Vo Huy Cuong, Deputy Director of the Civil Aviation Authority of Vietnam, said new airlines would help diversify the market, boost competitiveness and give passengers more options. However, he also asked Thien Minh Group to clarify in detail capital turnover, specific plans to offset losses and when they would start seeing profits.
The Ministry of Transport has asked the Civil Aviation Authority of Vietnam to closely monitor Thien Minh Group’s fleet until 2025 to ensure that the number of aircraft will be suitable with Vietnam’s infrastructure and market.