Hanoi - The third privately owned airline to try to crack the Vietnamese domestic market plans is to begin operations within two months, a government official said Monday.

Deputy Minister of Transport Pham Quy Tieu said Air Mekong would launch its first domestic flights in October.

The country's first private carrier, Indochina Airlines, began flying in late 2008 but closed in 2009 after losses of 2 million dollars. A second private airline formed in 2007, VietJet Air, but has yet to launch its first flight.

Air Mekong will fly leased Bombardier CRJ-900 aircraft on routes between Hanoi and Ho Chi Minh City, as well as the tourist towns of Dalat, Danang, Phu Quoc, Nha Trang and Haiphong, the state-run newspaper Thanh Nien reported Monday.

The airline's headquarters will be located on the beach resort island of Phu Quoc.

State media said Air Mekong is not a budget airline, and prices would be comparable to those of the national flag carrier Vietnam Airlines.

In February, Malaysian budget carrier AirAsia bought a 30-per-cent stake in VietJet Air, but it is not yet clear when the new airline will start flying.

Deutsche Presse Agentur - August 16, 2010

Air Mekong gets jets for October maiden flights

Vietnamese startup carrier Air Mekong received four Canada-made planes chartered by US-based SkyWest Leasing Inc. on Sunday, another step toward the private airline’s launch of domestic services this October.

The four Bombardier CRJ900 jets, with 90 seats each, landed at Tan Son Nhat Airport in Ho Chi Minh City at noon. They are three years old, according to Air Mekong.

The 100% Vietnamese carrier plans to launch operations with domestic flights on October 10. It is set to sell ticket as of mid-September.

The planned services include Hanoi-Phu Quoc, Hanoi-Hochiminh City, Hanoi-Phu Quoc, and flights from Hanoi to Danang, Nha Trang, Dalat and routes from HCMC to Danang, Nha Trang, Dalat, Con Dao Island, Buon Ma Thuot, Hai Phong and Vinh.

The carrier is waiting for approval from the Civil Aviation Administration of Vietnam. Air Mekong has not announced its fares yet.

SkyWest, the parents company of SkyWest Leasing Inc., says it already invested US$7 million in a 30% stake of Air Mekong. SkyWest adds it has personnel on site to provide technical expertise.

Air Mekong says it has recruited more than 40 pilots and is training 50 flight attendants.

The carrier was set up in 2009 as the third private airline in Vietnam after Indochina Airlines and VietJet Air. Indochina has stopped operations due to losses, while VietJet does not fly yet.

Currently operational airlines in Vietnam are national carrier Vietnam Airlines, its subsidiary Vietnam Air Service Co. (VASCO), and Jetstar Pacific.

By Truong Van - Sai Gon Giai Phong - August 16, 2010