Mekong Air restructuring and Vietjet rise

HANOI- Vietnam used to have  four airlines in its skies but one might soon be out of business: Private Vietnamese airline Air Mekong, announced to ground all of its aircraft from March 1st 2013, returning to Skywest Airlines all of its fleet of four Bombardier aircraft CRJ900. The airline’s management confirmed that it will not close down but just suspend its activities until it could restructure its entire operation. According to an online statement posted late last week, the suspension is designed to give the carrier time to become profitable in a ‘difficult’ aviation market. Changes to the airline will include new aircraft and a potential shake-up in personnel, according to the airline’s management to local newspaper Thanh Nien News. Air Mekong was established in 2009 and started its activity in October 2010. However, losses continued to get bigger over the years. Air Mekong is the second airline to suspend its operation after Indochina Airlines, back to December 2010.

Meanwhile, while Air Mekong is unlikely to take off again for a long time- if it even occurs-low cost carrier Vietjet announces to expand its network next month. The carrier opened in early February its first international route between Ho Chi Minh City and Bangkok and plans to add more services. Next is the launch at the end of March of a Hanoi-Bangkok daily flight.

VietJet Air now operates nine domestic routes and is looking at more ASEAN destinations as well as South Korea and Taiwan, according to Pritam Singh, vice-president for business development. Among ASEAN destinations, Viet Jet looks at Kuala Lumpur and Singapore as its next target. The carrier has for now six Airbus A320 but plans to have at least 20 aircraft of the same type by 2015.

Sourced: TravelDailyNews