New airlines are expected to be launched in Vietnam following a proposed easing of ownership restrictions to allow new joint venture carriers.
A revised Law on Civil Aviation is under government consideration and it is expected to take effect from the beginning of January, enabling foreign investors to hold stakes of up to 49%, according to state-run media. A single foreign investor may not be allowed to own more than 30%, however.
Several private companies in Vietnam have been trying to convince the government to allow them to establish joint venture airlines with foreign groups, but so far without success. The regulatory changes are now being taken as a sign that new carriers will finally be permitted to launch in future.
Vietnam has two main scheduled airlines, dominant carrier Vietnam Airlines and much smaller Pacific Airlines. Both are owned by the government.
Pacific Airlines has been seeking a foreign investment partner to bring in funds to enable it to be re-launched as a low-cost airline and to expand its small fleet of narrowbody jet aircraft.
Last year Singapore government investment arm Temasek Holdings came close to buying a large minority stake in Pacific but the talks collapsed. Earlier this year state-run media said an undisclosed US company was negotiating to buy a stake.
Source: Airline Business
