In its proposal, the Ministry of Transport says the global aviation market has suffered heavy losses due to COVID-19 travel restrictions, and Vietnam is no exception. To be optimistic, the ministry forecasts the local aviation market would make up losses and fully recover by 2022.
Local airlines have resumed domestic flights and conducted only a number of authorized international flights to repatriate Vietnamese citizens stranded overseas and bring foreign experts to Vietnam.
For the time being, the ministry wants to focus on recovering the aviation market locally and globally, and helping the airlines weather the COVID-19 crisis. The establishment of new airlines will be considered as soon as the market fully recovers in 2022 at the latest possible time.
The decision comes after hospitality group Thien Minh has registered for Canh Dieu (KiteAir) to take off. However, the Ministry of Transport’s proposal means the new airline’s investment license will be considered after 2022.
Vietnam currently has five airlines namely Vietnam Airlines, Jetstar Pacific, Vietjet Air, Vietnam Air Services Company (VASCO) and Bamboo Airways.
Last April, the Prime Minister approved in principle Vietravel Airlines project after the Civil Aviation Authority of Vietnam had appraised its documents. Vietravel Airlines is registering for a license and it is the sixth airline to operate in Vietnam.
