The Civil Aviation Authority of Vietnam (CAAV) has granted an air operator's certificate (AOC) for another new start-up, Vietstar Airlines.
Vietstar Airlines was incorporated in 2011 by state-owned companies and the Vietnamese air force, with a registered capital of VND400 billion ($17.6 million) and has been providing ground-handling services, aircraft maintenance and pilot training since.
The Ho Chi Minh-based company initially applied for an AOC in 2015 but was asked by the CAAV to raise its capital to VND800 billion. It will operate a mixed fleet of Embraer Legacy 600 and Beechcraft King Air B300 and has set a domestic target of 500,000 passengers and 32,000 tonnes of cargo by the first year.
The move beats conglomerate Vingroup’s plan to start Vinpearl Air, although it is likely to have little impact as Vinpearl Air seeks to operate a larger and more conventional fleet for international service. The airline also has a deeper starting capital of VND1.3 trillion, which is the minimum sum to run an international airline with more than 30 aircraft.