Vinpearl Air has total investment of VND4.7 trillion. — Photo cafef.vn

The Ministry of Planning and Investment (MPI) has submitted to the Prime Minister plans for the establishment of Vinpearl Air, with investment capital of VND4.7 trillion (US$202.6 million).

The airline plans to take off next year and develop a fleet of 30 aircraft within four years.

Vinpearl Air has total investment of VND4.7 trillion, of which equity capital is VND1.3 trillion.

Vinpearl Air stated that it plans to begin operations in July next year if approved. It will be based at Noi Bai International Airport.

The airline will have six narrow-body aircrafts with 150-220 seats in the first year.

The airline does not plan to exploit international routes in the first year. It will operate 32 international flights in the second year (2021).

It expects to operate 62 domestic routes and 93 international routes by 2025.

To prepare for the establishment of the airline, Vinpearl Air signed a memorandum of understanding with the Airport Corporation of Viet Nam (ACV), in which ACV committed to provide services to Vinpearl Air at 18 airports.

Earlier, the Ministry of Transport said that Vinpearl Air was eligible to propose the plans to the Prime Minister for consideration and approval of the investment policy.

In case the Prime Minister approves, the Ministry of Transport will direct the Civil Aviation Authority of Viet Nam to appraise the air transport business conditions then report the results to the Prime Minister. — VNS