Hanoi (VNS/VNA) - No new airlines will beallowed to open in Vietnam until 2022 at the earliest, Deputy Prime Minister Trinh Dinh Dung has announced.
The Deputy PM said until the aviation industry has fullyrecovered from the fall-out of the COVID-19 pandemic, no new airlines will beconsidered.
His ruling conforms proposals submitted by the Ministry ofTransport (MoT) in May.
The announcement will come as a blow to a number of newairlines that were hoping to take to the skies soon.
Kite Air of hospitality group Thien Minh and Vietstar Airlinesof Vietstar Airlines Multirole Corporation were racing for permits.
With the ministry’s decision, these airlines must continue towait for permits.
Minister of Transport Nguyen Van The said: "In the most optimisticscenario, only in 2022, the local aviation market could reach the result it didin 2019."
According to the ministry, Vietnam has 214 aircraft, butright now less than half are being used.
To ensure the State management of aviation to developsustainably in the future, the MoT suggested focusing on restoring the domesticair travel and solve the difficulties for the local airlines.
According to the Government Office, Dung assigned the MoT to takeresponsibility in ensuring the sustainable development of the aviationindustry. He also assigned the Ministry of Planning and Investment with thefunction of appraising investment policy of the Kite Air project to report tothe Prime Minister in the future.
Currently, Vietnam has five commercial airlines includingVietnam Airlines, Vietjet, Jetstar Pacific Airlines, Bamboo Airways and VietnamAir Services (VASCO).
Earlier this year, Vietravel Airlines was granted the licenseto become the 6th commercial airline of Vietnam. It is applying for a flightpermit./.