Hanoi (VNA) – The granting of an aviation transportation business licence to newly-established Vietstar Airlines will be considered after Tan Son Nhat International Airport in Ho Chi Minh City is expanded, Prime Minister Nguyen Xuan Phuc said in an instruction given to the Ministry of Transport.

This means the airline will have to wait at least three years before providing passenger and cargo services, as the upgrade of the Tan Son Nhat International Airport, including the construction of an additional terminal and aprons, is underway.

Vietstar Airlines, which was established in June 2016 with capital of 300 billion VND (13.24 million USD), is headquartered in Tan Binh district of Ho Chi Minh City.

It has met all requirements for a licence in terms of capital, airplanes and owner’s qualifications.

The carrier currently has a fleet of five passenger aircraft and two cargo aircraft, targeting the domestic, Northeast and Southeast Asian markets. It is expected to carry 500,000 passengers and transport 32,000 tonnes of freight during its first year of operation.

Once granted a business license, Vietstar Airlines will become the fifth carrier in Vietnam, joining Vietnam Airlines, Jetstar Pacific, Vietjet Air, and the Vietnam Air Services Company.

In a document asking the Government’s approval of Vietstar’s licence, the Ministry of Transport affirmed that adding a new carrier to the domestic aviation market is keeping with the policy of socialization of transport and aviation services, helping create a competitive environment for enterprises.

It will also gives passengers more choice with reasonable prices, thus boosting the development of localities and reducing pressure on roads, it said.-VNA