The Prime Minister gave in-principle approval to the Vietravel Airlines project on April 3.
The project has a total investment of VND700 billion (US$30.1 million) and a lifespan of 50 years.
To be headquartered at Phu Bai International Airport in the central province of Thua Thien-Hue, the new carrier is set to provide domestic and international air transport services to boost Vietnam’s air transport capacity as well as tourism growth and socio-economic development.
Its fleet will gradually increase from three aircraft in the first year of operation to eight by its fifth year.
According to the Civil Aviation Authority of Vietnam, an air transport licence is a prerequisite in Vietravel Airlines making subsequent moves such as obtaining an air operator’s certificate and taking steps relevant to aviation safety and security.
Vietravel Airlines is the latest air carrier from Vietnam, joining Vietnam Airlines, Vietjet Air, Bamboo Airways, Pacific Airlines, Vasco, and Hai Au Aviation.