Aviation

The airline is scheduled to start operation in the second quarter this year with a fleet of three airplanes, which could be raised to eight by 2024.

Northeast Asian markets such as China, Japan, Taiwan and South Korea make up a significant source of revenue for Vietnamese airlines.

Suspension of flights between Vietnam and China leads to potential losses of 400,000 passengers per month and VND10 trillion (US$430 million) in revenue for Vietnamese airlines.

Kite Air targets to be a budget airline with a focus on domestic routes, aiming to serve passengers in provinces/cities with underdeveloped aviation infrastructure.

Experts believed that the government’s decision on increasing foreign holding will be a springboard for foreign investors to penetrate into the Vietnamese burgeoning market.

Opportunities are also open more for foreign investors in the Vietnamese aviation sector as the foreign ownership cap in Vietnamese air transport businesses will be loosened to 34% from the current 30% from early next year.

There will be no difference in the required minimum amount of capital for airlines providing international and domestic air transport services.