The Vietnamese aviation market has been recording double-digit growth in the last four years, but the growth rate is slowing.

Vingroup announced today, January 14, to call off its project to set up Vinpearl Air even though the Ministry of Planning and Investment had just sent this project to the prime minister for approval, the local media reported.

The Ministry of Planning and Investment (MPI) has submitted to the Prime Minister plans for the establishment of Vinpearl Air, with investment capital of 4.7 trillion VND (202.6 million USD).

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.

Vietnam’s Ministry of Transport supports the establishment of Kite Air as room remains large for airlines utilizing small airports, in turn meeting Vietnam’s huge transport demands.

Vietnam Airlines said that it is fully complying with current regulations on listing airfares which include information about air ticket prices, taxes, fees and charges.

In a proposal to the Ministry of Transport (MOT) to establish an air carrier, Vinpearl Air owned by billionaire Pham Nhat Vuong said it wants to choose Noi Bai as the base airport.

Vingroup’s Vinpearl Air selected Noi Bai International Airport in Hanoi as its base, however, no prime flight slots are available for the carrier’s flights.

Phan Xuan Duc, former deputy general director of the national flag carrier Vietnam Airlines, has been named chief executive officer of Vinpearl Air, which was recently established by Vingroup.

Vinpearl Air of the private conglomerate Vingroup will begin domestic and international flights from July 2020 with a fleet of six aircraft, according to Director General of the Civil Aviation Authority of Vietnam (CAAV) Dinh Viet Thang.

Major local conglomerate Vingroup’s own air carrier, called Vinpearl Air, is expediting procedures for its inaugural flight in July 2020.

Vo Huy Cuong, deputy head of the Civil Aviation Authority of Vietnam (CAAV) on July 10 confirmed that CAAV has not received an application for a license from Vinpearl Air JSC.

Vingroup, the multi-field conglomerate, has taken the first step to join the aviation market, setting up Vinpearl Air JSC, VinAviation School, and VPA Training Center.

Major local conglomerate Vingroup has established its own air carrier called Vinpearl Air with charter capital of VND1.3 trillion.