Thursday, 03/07/2008 17:39

Mekong firm aims to launch airline

Kien Giang-based Mekong Aviation Joint stock Co has submitted an application to the Civil Aviation Administration of Viet Nam (CAAV) to launch carrier Mekong Air.

Mekong Aviation is the third private aviation firm to request a Vietnamese operating licence. Vietjet Air and Speed Up Air have already been given permission by the Government to operate domestic services.

Mekong Air has a charter capital of VND600 billion (nearly US$36.4 million), some VND300 billion higher than the minimum required by the Law on Aviation to operate services within Vietnam.

Mekong Air said it planned to use Canadian Bombardier aircraft, which can carry 86-90 passengers, to fly from HCM City to Rach Gia, Phu Quoc, Ca Mau and Can Tho twice a day.

If given Government approval, Mekong Air will begin operations in the second quarter of next year.

However, it is uncertain whether the airline's application will succeed. Lai Xuan Thanh, deputy director of CAAV, said the Prime Minister had earlier instructed the Ministry of Transport to delay making decisions on new airline applications.

Vietnam currently has five airlines operating domestic flights - State-owned Viet Nam Airlines, Jetstar Pacific, Vasco and private operators Vietjet Air and Speed Up Air.

Vo Huy Cuong, head of CAAV's Aviation Transport Department, said the Government's decision not to grant new operating licences was to review development strategies of the aviation sector and prevent too many carriers competing.

However, Cuong told Viet Nam News yesterday that CAAV would still pass on Mekong Air's application to the Government for consideration.

He added that in 2007 the Government approved in principle an application by a company based in southern Kien Giang Province to launch a carrier service mainly in the Mekong River Delta.

Transport links in the Mekong region were poor, which was why the Government had endorsed the project, said industrial analysts.

VNN

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