Vietnam Travel and Marketing Transport JSC (Vietravel) plans to equitise its Vietnam Travel Airlines Co Ltd (Vietravel Airlines), to boost the subsidiary’s development as the first travel airline in Viet Nam.

In a report to be submitted to Vietravel’s annual general meeting later this month, it announces plans to equitise the airline in its second year of operations, with Vietravel holding the founding share and remaining the majority shareholder.

Amid the impact of the COVID-19 pandemic on the economy, businesses, including Vietravel, are working to evaluate and adjust their directions, plans, and operational scale to adapt to the fluctuating business environment.

The restructuring of the operational model aims to save resources, personnel, and costs for the reinforcement of its business strategy.

Vietravel said that the actual day of the shareholders’ meeting will be decided based on the Government’s regulations on COVID-19 prevention and control.

Vietravel Airlines, the sixth carrier in Viet Nam, debuted on December 26, 2020 after meeting all requirements and completing the necessary procedures for operating commercial flights.

Headquartered at Phu Bai International Airport in the central city of Hue, it aims to carry one million passengers in its first year of operations.

It is Viet Nam’s newest carrier, joining Vietnam Airlines, Vietjet Air, Pacific Airlines, Vasco, and Bamboo Airways. Total investment stands at VND700 billion (US$30.2 million), its license is for 50 years, and it is set to provide both domestic and international air transport services. — VNS