The Vietstar is expected to become a passenger and cargo carrier in the future. — Photo brandsvietnam.com

HÀ NỘI (Biz Hub) — The Vietstar One Member Limited Liability Company (Vietstar) will become Việt Nam's fifth airline if it is approved by the prime minister.

The Giao Thong (Transport) newspaper reported that the Civil Aviation Authority of Viet Nam (CAAV) had submitted to the Ministry of Transport appraisal results related to the aviation transport business licence for Vietstar.

According to CAAV's appraisal, Vietstar's documents meet the current legal regulations related to capital, agreements on aircraft leasing and qualifications of management boards. Under the current laws, based on CAAV's appraisal results, the Ministry of Transport will report the same to the prime minister for granting a business licence for the airline.

If it gets the prime minister's nod, Vietstar is expected to make its first flights next year with a fleet of seven aircraft, of which five specialise in passenger transport used the Airbus A320, A321 and Boeing 737; and two specialise in cargo transport used the Boeing 737-300 Freighter. It will be the first airline in the country using specialised aircraft for cargo transport services.

CAAV's deputy director Vo Huy Cuong said in the current scenario, it was necessary to have more Vietnamese firms undertake cargo transport services with the use of specialised aircraft, in accordance with the prime minister's instructions.

Bui Minh Dang, deputy director of CAAV's transport division, said with the expected entry of Vietstar in the country's aviation market, locals would be the first beneficiaries as airlines in the country would have to improve quality and services and offer more reasonable prices to become more competitive.

If Vietstar, which is headquartered in HCM City with a capital of VND300 billion (US$13.39 million), is granted a licence, it will focus on domestic routes between northern and southern Viet Nam and routes from Viet Nam to north Asian countries and ASEAN nations.

In March this year, the owners of Vietstar also submitted a proposal to relevant authorities for licensing of the Vietstar Airlines Multirole Corporation. However, the Ministry of Finance refused the proposal, saying that Vietstar had not yet met the capital requirement to be granted a licence for providing passenger and goods transport services.

CAAV's statistics show that the country currently has four airlines -- Vietnam Airlines, Jetstar Pacific Airlines, Vietnam Air Services Company and VietJet Air. — VNS