Vietnam Airlines and Techcombank to start new airline

February 06, 2016 | 14:05

(0) user say

Vietnam Airlines Corp. plans to set up a new airline from the restructuring of its subsidiary Vietnam Air Services Co. (VASCO), said Pham Ngoc Minh, chief executive officer of the national carrier in an interview with Bloomberg on Tuesday.

Viet Nam is expected to become among the world's top 10 fastest-growing aviation markets in the next two decades, according to the International Air Transport Association. - Photo enternews.vn

Vietnam Airlines is waiting for approval from the Ministry of Transport.

The move comes in the context of Vietnam Airlines is gradually losing its domestic market share to the low-cost VietJet Aviation Joint Stock Co.,.

If the plan is approved, Vietnam Airlines will hold 51 per cent of the venture, while the Viet Nam Technological and Commercial Joint Stock Banks (Techcombank) will have a 49 per cent stake, Minh said.

Techcombank will make an initial investment of VND147 billion (US$6.6 million) in the venture, while Vietnam Airlines will provide aircraft and other assets of Vasco, he added.

According to the International Air Transport Association, Viet Nam is expected to become among the world's top 10 fastest-growing aviation markets in the next two decades.

VNS

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional