Private air carrier VietJet Aviation Joint Stock Co. (VietJet Air) is seeking approval to commence its services on domestic routes in May 2010 instead of the launch deadline of next month.
VietJet Air became the first private airline to be licensed in Vietnam in December 2007 with charter capital of VND600 billion (US$ 33.61 million).
Vo Huy Cuong, head of the Air Transport Department of the Civil Aviation Administration of Vietnam (CAAV), told The Saigon Times Daily on Monday the airline had submitted its application to the Ministry of Transport.
The lower-than-expected air travel demand was one of the main reasons for the airline’s delay, Cuong said.
The Hanoi-based carrier had earlier been given December as the deadline to launch its maiden flight or have its license revoked according to the country’s aviation regulations. The civil aviation law regulates that two years are the valid period from a license being granted to a startup of new airline.
Cuong said CAAV had reported to the ministry that VietJet Air’s application was reasonable as the market for air travel is facing a difficult time as a result of the global downturn.
VietJet Air chief executive officer, Nguyen Duc Tam, said the carrier was rushing to complete the procedures in preparation for its launch.
Tam said the private carrier was working on plans to lease and maintain aircraft as well as register intellectual property rights for its brand and logo in Vietnam, Japan, Hong Kong, Thailand and other markets the airline plans to fly to.
“We plan to operate two Airbus A320s and then gradually increase our fleet after six months of operation,” the CEO said.
VietJet Air would stay with its initial plan of flying between Hanoi, Ho Chi Minh City and central Danang before expanding its services to Bangkok, Singapore, Malaysia, China, Japan and South Korea, according to Tam.
The carrier has so far announced several delays due to the impacts of soaring fuel costs in mid-2008 and low air travel demand.
The only active private airline in Vietnam is Indochina Airlines but the carrier’s operation has been suspended until November 24 for the maintenance of its sole aircraft.
Mekong Air, the third private airline licensed in Vietnam, is also planning to launch domestic flights next year.
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