The carrier, earlier set to start flying at the end of this year, also needs more time to finish all the paperwork required for its business, Thoi Bao Kinh Te Saigon reported Monday, citing a senior official of the Vietnam Civil Aviation Administration.

Vietjet received a license for operation in late 2007 with a registered capital of VND600 billion (US$33.5 million). Under its original plan, it was to begin flying on domestic routes, covering Hanoi, Ho Chi Minh City and Da Nang, before expanding its service to Asian countries.

The carrier initially planned to launch its service at the end of 2008, but the schedule has been pushed back four times, including the latest postponement, online news website VnExpress reported.

If it fails to begin flying next May, the private airline could have its license revoked, the report said.

Vietjet’s decision to delay its launch has cast more gloom over the local airline industry.

Indochina Airlines, the only operating private airline, last week suspended flights on its lone Hanoi-HCMC route until November 26 as it could not find enough customers to break even.

The carrier, which began operations a year ago, is reported to have run up huge debts. The Ministry of Transport is considering revoking its license, according to VietnamNet.

The other private airline, Mekong Aviation Joint-Stock Co., said it would launch commercial flights next year using a 10 aircraft fleet. But it has not announced any specific business plans yet.

Source: Thanh Nien