Staff at a Vietravel branch in Ha Noi. Nguyen Quoc Ky, General Director of Vietravel, revealed the plan to establish Vietravel Airlines for the first time at a conference in early April. — Photo vietravel.com

Local tour operator Vietravel is collecting shareholder opinions on its plan to issue non-convertible bonds worth VND700 billion (US$30 million) to provide supplementary capital for the establishment of Vietravel Airlines.

The bonds have a term of two years with a maximum interest rate of 11 per cent per year.

The firm also asked shareholders to cancel the plan to issue 80,000 non-convertible bonds with a face value of VND1 million, approved at the annual general meeting in April. Under this plan, the bonds would have a term of 30 months and were expected to be released in the third quarter of this year.

Nguyen Quoc Ky, General Director of Vietravel, revealed the plan to establish Vietravel Airlines for the first time at a conference in early April.

In mid-February, the company established Viet Nam Travel Aviation Co Ltd with initial charter capital of VND300 billion, based in the central province of Thua Thien Hue. Charter capital was later lifted to VND700 billion.

According to the website of the Thua Thien – Hue People's Committee, on June 11, Vietravel Airlines submitted an investment plan for the project to the provincial authorities.

Vietravel Airlines has a total investment of about VND1 trillion and will provide domestic and international air transport services. It is expected that after beginning official operations early next year, the airline will receive 20 aircraft and carry 5 million passengers annually.

Vice Chairman of Thua Thien Hue People's Committee Nguyen Van Phuong has committed to support Vietravel and instructed related agencies to create favourable administrative conditions to help the company stay on schedule. — VNS