An airplane of Hai Au - a subsidiary company, specialised in providing sightseeing services of Thien Minh Aviation Joint Stock. — Photo courtesy of Thien Minh Aviation Joint Stock

Canh Dieu (Kite) Air hoped to launch in the second quarter of 2020, but the project was put on hold because of the COVID-19 pandemic.

Now the Ministry has informed the PM that because the domestic aviation industry was facing so many difficulties, now is not the time to start a new airline.

The Civil Aviation Administration of Vietnam has said the domestic aviation market this year is expected to only receive 42.7 million passengers, a decrease of 46 per cent compared to 2019.

Vietnamese airlines now have 214 aircraft, but they have only operated domestic routes and some international cargo flights with the exploitation rate of less than 50 per cent compared to their capacity, the administration said.

The Ministry of Transport also asked Government to only approve the Canh Dieu (Kite) Air after 2022 when the domestic aviation market recovers.

The ministry also said Canh Dieu (Kite) Air’s plans were drawn up in 2018-19 when the domestic aviation market developed with the growth rate of 13-20 per cent each year.

The project, worth VND5.5 trillion (US$237 million), was invested by Thien Minh Aviation Joint Stock Company.

The original plan would have seen six ATR72 aircraft operating flights within Vietnam increasing to 30 planes by 2025.  VNS

Aviation firm proposes setting up Kite Air

Thien Minh Aviation JSC has proposed establishing a new airline, called Kite Air, with charter capital of VND1 trillion.  

Tight squeeze as new airlines set to take off in Vietnam

With more airlines planning to take flight in 2020, the room for profit-making is expected to narrow in the burgeoning aviation market, triggering doubts over the possibility of achieving success among newcomers.