MPI proposes PM not approve Cánh Diều Air establishment project

HÀ NỘI — The Ministry of Planning and Investment has asked Prime Minister Nguyễn Xuân Phúc not to approve plans to open a new airline in Việt Nam.

Cánh Diều (Kite) Air hoped to launch in the second quarter of  二0 二0, but the project was put on hold because of the COVID- 一 九 pandemic.

Now the Ministry has informed the PM that because the domestic aviation industry was facing so many difficulties, now is not the time to start a new airline.

The Civil Aviation Administration of Việt Nam has said the domestic aviation market this year is expected to only receive  四 二. 七 million passengers, a decrease of  四 六 per cent compared to  二0 一 九.

Vietnamese airlines now have  二 一 四 aircraft, but they have only operated domestic routes and some international cargo flights with the exploitation rate of less than  五0 per cent compared to their capacity, the administration said.

The Ministry of Transport also asked Government to only approve the Cánh Diều (Kite) Air after  二0 二 二 when the domestic aviation market recovers.

The ministry also said Cánh Diều (Kite) Air’s plans were drawn up in  二0 一 八- 一 九 when the domestic aviation market developed with the growth rate of  一 三- 二0 per cent each year.

The project, worth VNĐ 五. 五 trillion (US$ 二 三 七 million), was invested by Thiên Minh Aviation Joint Stock Company.

The original plan would have seen six ATR 七 二 aircraft operating flights within Việt Nam increasing to  三0 planes by  二0 二 五. — VNS