Although it seems like one of the worst times to start an aviation business, Vietravel Airlines is moving ahead to become Vietnam’s sixth passenger airline.
Vietnamese Prime Minister Nguyen Xuan Phuc has recently agreed to license a local company for air transport, making it the 6th airline of the country, Vietnam News Agency reported on Thursday.
Backed by the leading tour company
The prime minister assigned the country’s Ministry of Transport to clarify the financial capacity of the Vietnam Travel Aviation Company Limited (Vietravel Airlines) to ensure the minimum capital required for the operation of the airline, said the news agency.
Vietravel, the owner of Vietravel Airlines is a pioneer in the discovery and expansion of the tourist market. It has equally developed the inbound, domestic and outbound tours.
Vietravel Airlines will operate its first flight in December, during its first year of operation, the carrier will use three aircraft, before rising to eight by its fifth year, the news agency reported.
The business model of Vietravel Airlines
The airline, which will conduct both domestic and international flights, has set a goal of catering to 1 million passengers in its first year, thus creating nearly 600 jobs.
Vietravel Airlines is set to become the country’s 6th airline following national flag carrier Vietnam Airlines, Vietjet Air, Jetstar, VASCO and Bamboo Airways, according to the report.
The Covid-19 outbreak has hit all of them hard, forcing them to cancel all international flights and most domestic ones in the second and third quarters.