The Ministry of Finance said there is no sufficient evidence to confirm Vietstar Airlines Multirole Corporation has met capital requirements to get an air transport license.

The ministry made the point when commenting on the proposed air transport licensing for Vietstar Airlines as requested, the Vietnam News Agency reports.

The ministry said the minimum capital required for the establishment of an airline operating ten aircraft and international transport services is VND700 billion. In addition, to verify whether a company has sufficient chartered capital as regulated, those seeking the license must produce an account balance confirmation issued by a bank.

With capital contribution by assets, there must be a confirmation of competent valuation organizations.

Meanwhile, Vietstar Airlines has shown a capital confirmation by the HCMC Department of Planning and Investment, the ministry said in a recent document sent to the Government Office.

Therefore, the ministry proposed the Ministry of Transport strictly observe the Government’s Decree on air transport business and general air services.

In March, the transport ministry requested the Prime Minister to grant an air transport license to Vietstar Airlines.

Explaining Vietstar Airlines’ chartered capital of VND652.7 billion compared to VND700 billion as required, the transport ministry said the company’s audited financial report showed its equity is VND700 billion.

However, as the company has used equity to make investments and has yet to generate revenue, it still lacks VND47.3 billion. The company has pledged to add capital to meet the requirement, according to the transport ministry.

Under the business plan reported to the Transport Ministry earlier, Vietstar Airlines said it will operate a fleet of three Boeing 737s or Airbus 320s. It has also presented an aircraft lease agreement to the ministry.

Under Decree 30, if an aviation company gets approval from the Government, it has six months to complete necessary procedures and supplement documents to obtain the air transport license in order for the Transport Ministry to consider and grant an official license.