Following its application with Vietnam’s Ministry of Transport for an “air transport business license,” the commercial arm of Vietnam’s Air force, Vietstar Air, could soon become the country’s first airline to operate commercial freighters, according to local media sources.
At present, Vietstar Air provides the occasional passenger or cargo charter, alongside a host of aircraft repair and pilot training services. But if the airline’s general director, Pham Trinh Phuong, gets his way, the military will eventually operate a mixed fleet of freighters and passenger aircraft. Phuong plans to build upon the company’s established “corporate identity,” with the addition of new services, which would transform the company into “a cargo carrier airline.”
Sources claim that Vietstar plans to operate a mixed fleet of narrowbody 737s and A320s, in addition to its current fleet of passenger and cargo aircraft. The airline would focus initially on intra-Asian routes from its hub in Ho Chi Minh to destinations in neighboring Southeast Asian countries.
Local media reports that Vietstar only faces one caveat — its current market capitalization is about US$2 million short of meeting the government-mandated minimum threshold of $40 million to qualify for the license. However, given the airline’s close relationship with the government, licensing matters are unlikely to hinder Vietstar.
Vietnam’s Civil Aviation Administration chief, La Xuan Thanh, has already made it clear that the organization plans to back Vietstar. In a statement regarding Vietstar’s application for a license, Xuan Thanh said the CAAV “will create favorable conditions for Vietstar Airlines to participate in domestic and international air transport and direct the airline to become a cargo carrier.”