Vietnam Airlines told to focus on core business

TN News

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The Civil Aviation Authority of Vietnam has advised the government not to allow Vietnam Airlines to start an on-demand airline service, saying that it should not stray away from its core business.

Local media on Friday cited the aviation authority as saying the establishment of the new business could lead to national carrier Vietnam Airlines' resources being spread thin.

The carrier, instead, should focus on reorganizing Vasco, one of its subsidiaries.

Vasco offers short-haul flights and services for business passengers. The government has approved a plan to reorganize it as VietAir, a new general-purpose carrier.

Vietnam Airlines in November sought permission from the Ministry of Transport to establish VNJet, an on-demand business airline.

According to the proposal, VNJet would have a registered capital of VND50 billion (US$2.5 million), mainly leasing jets to businesspersons.

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