HANOI – The Ministry of Planning and Investment (MPI) has proposed that the prime minister halt a plan to establish the Kite Air airline project due to difficulties the aviation market is facing as a result of the Covid-19 pandemic.
Minister Nguyen Chi Dung on August 27 wrote to the prime minister about the plan to establish Kite Air and put forward its proposal.
The airline project, whose owner is Thien Minh Aviation JSC, is beneficial to the general plan for the growth of the local aviation market and can meet the high travel demand, the Ministry of Transport stated.
Amid fears over the impact of the coronavirus pandemic, the Ministry of Transport had earlier proposed the prime minister focus on the recovery of the aviation market and removal of obstacles facing operational airlines. The establishment of new air carriers should be considered after the aviation market recovers, it had said.
The prime minister agreed with the Ministry of Transport’s proposal, stating that licenses for airlines would be issued only after 2022 once the aviation market is back on track.
As such, the MPI proposed that the prime minister temporarily stop considering the establishment of Kite Air to ensure the growth of the market and efficiency of the airline after its establishment.
Kite Air is expected to operate six ATR 72 turbo-prop planes in the first stage of operations. The carrier, with a total investment of VND5.5 trillion, will be headquartered at Chu Lai Airport in Nui Thanh District, Quang Nam Province.
A few days ago, the Ministry of Transport also proposed that the Civil Aviation Authority of Vietnam and Vietravel Airlines review and re-evaluate the air transportation, aircraft fleet and business plans of the airline, established by local tour operator Vietravel.
By Lan Nhi