Vietnam ups capital requirement for new airlines

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The government is set to increase the capital requirement for new airlines by up to half from June.

A new decree that replaces the existing one issued in 2007 requires a carrier with 11-30 aircraft operating only domestically to have a capital of VND600 billion (US$28.6 million), a 50 percent increase.

For international operations, the requirement is VND700 billion for a fleet of 10 aircraft or less, and VND1 trillion for 11-30 planes.

The existing requirements are VND500 billion and VND800 billion respectively.

The maximum foreign ownership allowed in an airline has been cut to 30 percent from 49 percent.

Since the 2007 decree was issued, five more airlines were established though Indochina Airlines has already closed down and Air Mekong recently suspended operations.  

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