The firm has sent Thua Thien-Hue Province’s Department of Transport its proposal on establishing Vietravel Airlines. 

Vietravel has announced plans to establish an airline

At a recent meeting in Hue City, Nguyen Quoc Ky, Vietravel general director, said that his company’s carrier was aimed at fully exploiting provincial tourism and the local airway sector.

Vietnam’s population has reached nearly 100 million and the number of international visitors to Vietnam is annually on the rise, while there are only four local carriers Vietnam Airlines, Jetstar Pacific, VietjetAir and Bamboo Airlines.

Besides this, only 45% of 2.2 million foreign visitors to Hue last year stayed in the province for sightseeing; so, there is still room for growth in both the local airway and tourism sectors for Vietravel, Ky noted.

The Ministry of Transport has recommended looser regulations for new airline establishment. Under the ministry’s proposal, the minimum capital is VND300 billion (USD13 million) for an airline which operates 10 airplanes.

Meanwhile, the capital will be VND600 billion for 11-30 airplanes and VND700 billion for more than 30 airplanes.