There will be no difference in the required minimum amount of capital for airlines providing international and domestic air transport services.

Opportunities are also open more for foreign investors in the Vietnamese aviation sector as the foreign ownership cap in Vietnamese air transport businesses will be loosened to 34% from the current 30% from early next year.

Experts believed that the government’s decision on increasing foreign holding will be a springboard for foreign investors to penetrate into the Vietnamese burgeoning market.

Kite Air targets to be a budget airline with a focus on domestic routes, aiming to serve passengers in provinces/cities with underdeveloped aviation infrastructure.

Suspension of flights between Vietnam and China leads to potential losses of 400,000 passengers per month and VND10 trillion (US$430 million) in revenue for Vietnamese airlines.