Vietnam 's Civil Aviation Administration has granted a license to Vietstar Airlines which will be operating tourist and private flights along domestic and international routes.

Vietstar Airlines is a 400 billion VND (19.51 million USD) joint venture between the Aircraft Repairing Company A41, the Vietnam Air Force, Vietstar Airways and the Tin Thanh Express Company.

Nguyen Thanh Binh, a representative from Vietstar Airlines, told the Vietnam News that the airline would launch garages for aircraft maintenance and overhaul during November, kicking of flight services in December.

"Fights services for entertainment, emergency, film making, photography, geological survey and rescue operations are not available with other airlines in Vietnam ," Binh said.

"With more than 80 million people and a more stable economy, we believe that Vietstar will succeed in providing services to the growing needs of the market".

Vietstar Airlines will become the country's seventh domestic airline following Vietnam Airlines, Jetstar Pacific, Vasco, Viet jet, Air Mekong and Indochina Airlines.

Though the country has opened its sky to both national and private airlines, private carriers still face difficulties in competing with the national carriers.

Excluding national flag carrier Vietnam Airlines, Air Mekong is the only private airline operating healthily amidst current tough market conditions. Indochina Airlines, already defaulted on its debut and Jestar Pacific have debts with the Vietnam Air Petrol Co (Vinapco)./.