VietNamNet Bridge - The Civil Aviation Administration of Vietnam (CAAV) has asked the Transport Ministry not to approve a plan by Vietnam Airlines to establish an aviation joint stock company serving businesspeople.

November last year, CAAV received the VNJet plan proposed by Vietnam Airlines and its partners: Hanoi Import-Export Joint Stock Company , and the finance investment joint stock company An Binh.

The new airline is expected to offer flights to businesspeople, and have a chartered capital of VND50 billion (US$2.56 million) with 20 percent of which contributed by Vietnam Airlines.

Vietnam Airlines has been required to concentrate resources on the plan for VietAir based on restructuring of Vietnam Air Service Co. under the Vietnam Airlines Corp.

Vietnam’s Civil Aviation Law requires companies to submit their applications for new air carrier set-ups to CAAV and this agency will forward lawful dossiers to the Ministry of Transport, and the ministry will license a new airline upon approval from the Prime Minister.

CAAV said it took a maximum of 65 days for an application to be screened and approved.

The ministry has licensed five private airlines, VietJet Air, Indochina Airlines, Air Mekong, Trai Thien Air Cargo and Blue Sky Air. But only Air Mekong has recently conducted flights.

Source: Tuoi Tre