Property developer FLC Group announced on Wednesday the establishment of Viet Bamboo Airlines, with charter capital of VND700 billion (US$31.2 million). — Photo viettimes.vn

Property developer FLC Group announced on Wednesday the establishment of Viet Bamboo Airlines, with charter capital of VND700 billion (US$31.2 million).

According to its management board’s resolution, FLC will set up a subsidiary named Viet Bamboo Airlines Company Limited to join the aviation sector.

FLC said its deputy general director Dang Tat Thang will represent its capital in the subsidiary, of which it holds 100 per cent.

With the charter capital, the company is eligible to participate into both local and foreign aviation markets. The current regulations stipulate the minimum charter capital are VND300 billion and VND700 billion to join the local and foreign aviation markets, respectively. The charter capital ensures the purchase of 10 aircrafts.

FLC’s representative said the company’s establishment is the initial step, as the sector requires many procedures, conditions and infrastructure developments.

The group’s resolution also said the company also registered to operate in the real estate, housing construction and other services sectors.

Deputy head of the Civil Aviation Authority of Viet Nam, Vo Huy Cuong said they have not received an application from FLC.

However, he said the country’s aviation market has been eventful recently. Viet Nam has four airlines--Vietnam Airlines, Jetstar Pacific, Vietjet Air and VASCO--under its restructure process through a joint venture between Vietnam Airlines and Techcombank.

Vietstar Airlines, with charter capital of VND800 billion, has not been given licences for its operation as it is waiting for Tan Son Nhat’s expansion despite it announced flight plan since the beginning of last year. — VNS