Vietnam licenses first private airline
The Vietnam government has licensed the country’s first fully private airline as it moves to open the sector and keep up with demand in the fast-growing economy.
A spokeswoman for the company, Vietjet, said on Friday it planned to lease three planes to start domestic and international flights late next year. ”But initially the international services would be in the region only,” the spokeswoman said. State-run newspapers said the new airline would use either Boeing 737 or Airbus 320 aircraft.
A company statement said it had a chartered capital of 600bn dong ($37m). The sector is dominated by state-run flag carrier Vietnam Airlines, but it is under pressure to keep up with demand as the economy grows at more than 8 per cent a year and tourism and trade with it. It has 46 aircraft but wants to almost double its fleet to 86 by 2015. Vietnam Airlines, expected to launch and initial public offering in 2008, has annual revenues of about $1bn.
Reuters - November 30, 2007
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