[ad_1]
Canh Kite Aviation proposed to operate ATR72 aircraft in the first stage of operation – Photo: TUAN PHUNG
The reason for stopping the investment policy decision for the project is that the domestic aviation industry faces so many difficulties that licensing new airlines will not be effective.
Before that, in June 2020, the Ministry of Transport (MOT) also proposed to the Government to license only the policy of establishing a new airline after 2022, when the aviation market recovered.
Vice Prime Minister Trinh Dinh Dung also agreed with the proposal of the Ministry of Transport and assigned the Ministry of Planning and Investment to function as the investment policy evaluation body for the Canh Dieu air transport project, according to The recommendations of The Ministry of Transport informs the Prime Minister to make a decision.
The Transport Ministry said that the investment policy approval application to establish the Canh Kite airline was built in the years 2018-2019 when the domestic and international aviation market developed well with a growth of 13.2 -20 years.
But according to a recent assessment by the Vietnam Civil Aviation Administration, the COVID-19 epidemic has caused the domestic and foreign aviation market to severely shrink. This department forecasts that the total size of the Vietnam aviation market in 2020 will only reach 42.7 million passengers, a decrease of 46% compared to 2019.
Vietnamese airlines currently have 214 aircraft, but they only operate domestic routes and some international cargo flights with an operating rate of less than 50% compared to capacity.
Therefore, to ensure the sustainable development of the aviation industry in the current situation, the Ministry of Transport considers that in the immediate future, it is necessary to focus on restoring the national and international air transport market, eliminating the difficulties for the airlines are operating.
The establishment of a new airline will only be considered after the airline market recovers, proposed by MOT.
Canh Dieu (Kite Air) air transport project proposed by Thien Minh Aviation Joint Stock Company for investment, the total investment capital of the project is about 5.5 billion VND, in which the registered capital is 1 billion VND, loan trading 4.5 billion VND of trading.
Canh Kite Airlines is expected to take off in the second quarter of 2020 with 6 ATR72 short-range propeller jets or equivalent, but failed due to the COVID-19 outbreak, which severely affected the aviation industry.
According to the plan, in the first year of commercial operation, Canh Dieu Airlines will operate 6 ATR72 short-range propeller aircraft or equivalent, the airline’s fleet will gradually increase over the years; By 2025, the airline’s fleet will grow to 30 aircraft, including 15 ATR72 aircraft and 15 A320 / 321 aircraft or equivalent.
