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.

Vingroup’s investment in the aviation industry could lead to a surplus in supply, while the group needs to focus its resources on the industrial and technology businesses.

The airline is scheduled to start operation in the second quarter this year with a fleet of three airplanes, which could be raised to eight by 2024.

During the meantime, the government’s priority would be to address difficulties and concerns of operating Vietnamese airlines.

The project to establish Kite Air has not met the criteria to be submitted to the government for approval.