No new airline for four years, says Vietnam government
The Vietnamese government has no plans to establish a third airline in the next three or four years, the Government Office announced Wednesday. The announcement follows a Vietnam Airlines statement earlier this month that it was working on a project to transform its service company, Vietnam Aviation Service Company Ltd. (VASCO), into an independent carrier.
VASCO is already conducting flights to and from Ho Chi Minh City to the tourist islands of Con Dao and the southernmost province of Ca Mau. Earlier, in June, the Vietnamese government allowed ailing Pacific Airlines, Vietnam’s second carrier, to sell a 30% stake to Temasek Holdings Pte., Singapore's state-owned investment company. A Ministry of Finance official said Pacific Airlines was valued at US$167 million and Temasek would invest $50 million to acquire the stake.
To support Pacific Airlines, Vietnam said it would not open its civil aviation market to foreign carriers for at least the next three years.
Vietnam News Agency - October 21, 2005.
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