New carrier KiteAir plans June takeoff
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KiteAir, an airline established by hospitality group Thien Minh, hopes to launch its first flight next June after getting the Prime Minister’s nod.
The delay of three months over the original schedule was required as Thien Minh Group awaited investment approval from Prime Minister Nguyen Xuan Phuc, its Chairman Tran Trong Kien said.
The Ministry of Transport had in September voiced support for the establishment of KiteAir, but required that it be more specific in its plans to make profits, as the airline had envisaged a loss of VND350 billion ($15 million) in the first three years of its operations.
KiteAir is set to be headquartered in the central province of Quang Nam with a charter capital of VND1 trillion ($43 million), entirely invested in by Thien Minh Group.
It plans to operate six short-haul ATR-72 aircraft with a capacity of 78 seats in the first year of operation, and expand the fleet to 30 jets by the fifth year, including 15 narrow-body Airbus A320/321 aircraft.
The transport ministry has also supported the establishment of two other airlines, Vinpearl Air, a unit of private conglomerate Vingroup, and Vietravel Airlines, promoted by leading travel agency Vietravel.
All three airlines have to get approval from the PM, and later the air operator certificate (AOC) from the Civil Aviation Authority of Vietnam before they can launch operations.
Vietnam now has six licensed airlines: Vietnam Airlines, Vietnam Air Services Company (VASCO), Jetstar Pacific, Vietjet, Bamboo Airways, and military-run Vietstar Airlines, the last two making their debut this year.
Last year, Vietnam’s 21 state-run airports served 103.5 million passengers, up 11 percent year-on-year, and the figure is set to rise to 112 million this year, according to the Airports Corporation of Vietnam.
Questions & Answers
Q.Why did KiteAir experience a three-month delay from its original launch schedule?
Why did KiteAir experience a three-month delay from its original launch schedule?
The three-month delay occurred because Thien Minh Group needed to secure investment approval from Prime Minister Nguyen Xuan Phuc for KiteAir. This was a necessary step before the airline could proceed with its launch plans.
Q.What concerns did the Ministry of Transport raise regarding KiteAir's initial business plan?
What concerns did the Ministry of Transport raise regarding KiteAir's initial business plan?
The Ministry of Transport supported KiteAir's establishment but required the airline to be more specific in its profit-making plans. This was in response to KiteAir envisaging a loss of VND350 billion in its first three years.
Q.What type of aircraft will KiteAir operate initially and how will its fleet expand?
What type of aircraft will KiteAir operate initially and how will its fleet expand?
KiteAir plans to operate six short-haul ATR-72 aircraft in its first year. The airline intends to expand its fleet to 30 jets by the fifth year, including 15 narrow-body Airbus A320/321 aircraft.
Q.Which other airlines, apart from KiteAir, has the transport ministry supported for establishment?
Which other airlines, apart from KiteAir, has the transport ministry supported for establishment?
The transport ministry has also supported the establishment of Vinpearl Air, a unit of Vingroup, and Vietravel Airlines, which is promoted by the travel agency Vietravel. All three require further approvals.
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