The Vietnam Civil Aviation Authority Monday granted the Aircraft Operator Certificate (AOC) to Vietstar Airlines, making it the sixth airline in Vietnam. The AOC is a certificate approved by a regulatory authority, allowing a carrier to operate aircraft for commercial purposes within a specified scope of activities.
Vietstar Airlines is allowed to operate two types of aircrafts including Embraer Legacy 600, and Beechcraft King Air B300. Vietstar Airlines was founded in 2011 with a registered capital of VND400 billion (US$17.6 million). It has been providing ground handling, aircraft maintenance and pilot training services since. In 2015, it sought permission to flying passengers and cargo, but was asked to raise its registered capital before it could get a license. It has since raised its charter capital to VND800 billion (US$34.33 million) and in September 2016, the Ministry of Transport’s aviation department said Vietstar Airlines was qualified to get the license for offering passenger and cargo transport services.Vietstar has targeted to serve 500,000 passengers and carry 32,000 tons of cargo in the first year of operation.
At present, national flag carrier Vietnam Airlines, two budget carriers, Vietjet Air and Jetstar Pacific, the Vietnam Air Services Company (VASCO) and new start-up Bamboo Airways, have been competing in a market that served some 50 million passengers last year, up 10.1% from 2017.