VASCO manages ATR72-500 planes flying on the routes between Ha Noi and Dien Bien, Ha Noi and Vinh, HCM City and Rach Gia, and Phu Quoc and Can Tho to VASCO.— Photo daotaobanhang.edu.vn

HA NOI (Biz Hub) — National carrier Vietnam Airlines (VNA) proposes to convert its subsidiary Vietnam Air Services Company (VASCO) into a joint-stock company with an expected registered capital of VND300 billion (US$13.4 million).

According to baodautu.vn, the joint-stock company will be established following a revamp of the old company. Fifty-one per cent of its capital will be from VNA, 48 per cent from Techcom Capital and one per cent from Techcomdeveloper.

The carrier will contribute capital, with its tangible assets being managed and operated by VASCO, including five ATR72-500 planes and three engines. The other two shareholders will contribute 49 per cent of the registered capital, equal to VND147 billion ($6.5 million).

This move is expected to help the company mobilise capital through issuance of shares and expand its business. The management will be more effective and transparent.

VASCO will continue to operate ATR72 aircraft on domestic routes and will carry nearly 466,000 passengers in the first nine months of this year. The figure is expected to increase to more than 650,000 passengers by 2018.

Earlier, VNA transferred its operations between Ha Noi and Dien Bien, Ha Noi and Vinh, HCM City and Rach Gia, and Phu Quoc and Can Tho to VASCO. — VNS