The Ministry of Transport has recently submitted a report to the Prime Minister on the establishment of the SkyViet Aviation JSC on the basis of restructuring the Vietnam Air Services Company (VASCO), an affiliate of the national flag carrier Vietnam Airlines.

SkyViet will be formed on the basis of VASCO restructuring.

As reported by the ministry, VASCO was certified by the Civil Aviation Authority of Vietnam for aircraft operation and licensed with the prescribed transport code by the International Air Transport Association.

As an affiliate of Vietnam Airlines, VASCO operates an ATR72 fleet, providing air transport to and from local airports incapable of receiving narrow-body aircrafts (Con Dao, Ca Mau, Dien Bien, and Kien Giang airports).

These are important routes with significant implications to local socio-economic development, in accordance with the operational model of an independent airline.

In October 2007, the Prime Minister allowed Vietnam Airlines to develop a plan to establish an airline on the basis of reorganising VASCO.

By the end of 2015, Vietnam Airlines submitted an application for approval on capital contributions to form a new airline in as a joint stock company on the basis of restructuring VASCO with the minimum charter capital of VND300 billion (US$13.5 million).

Accordingly, the equity ratio from Vietnam Airlines is 51% of charter capital from the existing assets managed and exploited by VASCO, plus a warehouse supplying ATR72-500 aircraft spare parts and ATR72 reserve engines worth VND99.2 billion and VND53.7 billion in cash contributed by the national flag carrier.

In addition to Vietnam Airlines, Techcom Capital and Techcomdeveloper also contribute capital to run the new airlines, with an equity ratio of 48% and 1%, respectively.

Head of the Civil Aviation Authority of Vietnam Lai Xuan Thanh said that the transition from VASCO to SkyViet was just a name switch, with SkyViet’s flight licence and business permit inherited from VASCO.

On March 10, SkyViet Aviation JSC was granted a business registration certificate by the Ho Chi Minh City Department of Planning and Investment, starting operation April 1, 2016.

Nhan Dan