In addition to nearly doubling its charter capital, Vietravel Airlines also changed its operating model from a limited liability company to a joint stock company. 
Vietravel Airlines will change its operating model to a joint stock company.
No foreign shareholders The Civil Aviation Authority of Vietnam has just completed the appraisal results of the application for re-issuance of the Air Transport Business License for Vietravel Airlines, after receiving the application through the electronic administrative procedure processing system. In Official Dispatch No. 5775/CHK-VTHK recently sent to the Ministry of Transport (MOT), the state management agency for aviation said that the proposed changes of Vietravel Airlines in the Air Transport Business License No. 02/2020/GPKDVCHK, issued on October 29, 2020, are appropriate, meeting the provisions of Decree No. 92/2016/ND-CP dated July 1, 2016 on conditional business lines in the field of civil aviation (Decree No. 92) and Decree No. 89/2019/ND-CP dated November 15, 2019 on amending and supplementing a number of articles of Decree No. 92 and Decree No. 30/2013/ND-CP dated April 8, 2013 on air transport business and general aviation activities (Decree No. 89). “Based on the 2006 Law on Civil Aviation, the Law amending and supplementing a number of articles of the 2014 Law on Civil Aviation, Decree No. 92, Decree No. 89 and the application dossier of Vietravel Airlines, it is recommended that the Ministry of Transport consider re-issuing the Air Transport Business License to Vietravel Airlines, taking note of the changes proposed by this tourism airline,” Official Dispatch No. 5775 stated.
| - Vietravel Group Joint Stock Company has major shareholders including: 3 individuals of Vietnamese nationality (Mr. Nguyen Quoc Ky holds 38.14%, Mr. Tran Doan The Duy holds 14.19%, Mr. Vo Quang Lien Kha holds 14.18%) and 1 organization which is a Vietnamese enterprise (Saigon International Travel and Tourism Services Company Limited holds 15.17%). - Vietnam Tourism and Transport Marketing Joint Stock Company (Vietravel) has major shareholders including: 1 individual (Mr. Nguyen Quoc Ky holds 10.96%) and 3 organizations which are Vietnamese enterprises (Vietravel Group Joint Stock Company holds 14.29%, Hung Thinh Group Joint Stock Company holds 20.52%, VinaCapital Fund Management Joint Stock Company holds 9.77%). |
It is known that the contents of License No. 02 that Vietravel Airlines proposed to change include: the name and type of enterprise; charter capital and shareholders; adding 1 more legal representative; head office, branch and representative office locations. Specifically, Vietravel Airlines increased its charter capital from VND700 billion to VND1,300 billion to ensure capital to meet production and business needs. The Civil Aviation Authority of Vietnam said that this content has been recorded in the Business Registration Certificate of Vietravel Airlines. In addition, the conversion of the type of enterprise from a limited liability company to a joint stock company with the participation of new shareholders, along with the capital contribution has changed in the total capital scale of VND1,300 billion of Vietravel. Vietravel Airlines said that the company has no capital contribution from foreign investors. All four shareholders (2 companies and 2 individuals) participating in the capital contribution are enterprises and individuals with business registration/Vietnamese nationality. For the two companies contributing capital, which are legal entities operating in the form of joint stock companies, the shareholder structure of these two companies is all Vietnamese organizations/individuals as major shareholders, with no foreign investors contributing capital accounting for more than 49%. "Thus, the shareholder structure of Vietravel Airlines also ensures compliance with the provisions of Article 8, Decree No. 92, amending and supplementing the provisions of Clause 5, Article 1, Decree No. 89, related to regulations on capital conditions in air transport business", the Civil Aviation Authority of Vietnam commented.
Opening up opportunities to become a public company Another notable major change, related to the Air Transport Business License for Vietravel Airlines, is the name and type of enterprise. Accordingly, Vietravel Airlines has converted its business model from a limited liability company to a joint stock company to mobilize social resources for company development, while also conforming to the model of the parent company being converted to Vietravel Corporation. This content has been recorded in the Certificate of Business Registration of Vietravel Airlines Joint Stock Company, issued by the Department of Planning and Investment of Thua Thien Hue in mid-September 2024. It is known that when converting to a joint stock company model (with the addition and increase of capital to VND 1,300 billion), Vietravel Airlines submitted a dossier requesting the Ministry of Planning and Investment to consider and report to the Prime Minister for permission to adjust the name of the investor and investment capital to implement the Vietnam Travel Aviation Transport Project. Specifically, this airline proposed to adjust the investor information from "Vietnam Travel Aviation Company Limited" to "Vietnam Travel Aviation Joint Stock Company"; Adjust the scale of the investment project from "the number of aircraft in operation in the first year is 3 aircraft, gradually increasing to 8 Airbus/Boeing or equivalent aircraft in the 5th year" to "the number of aircraft in operation in the first year is 3 aircraft, gradually increasing to 25 aircraft in 2025, 50 aircraft in 2030 and developed appropriately after 2030. The aircraft type is Airbus/Boeing or equivalent". Based on the documents of Vietravel Airlines and the provisions of Clause 3, Article 41 of the Investment Law, in early July 2024, the Ministry of Planning and Investment issued Document No. 5343/KHĐT-GSTĐĐT notifying Vietravel Airlines about the adjustment of investor information and total project investment capital. Accordingly, the Ministry of Planning and Investment affirmed that the change of investor information and total investment capital does not change the scale of the investment project (project scale: number of aircraft operating up to 8 aircraft, Boeing and Airbus types) so it is not a case of having to carry out procedures for approving investment policy adjustment. According to the Civil Aviation Authority of Vietnam, with the information stated in Document No. 5343/KHĐT-GSTĐĐT and the Business Registration Certificate of Vietravel Airlines issued by the Department of Planning and Investment of Thua Thien Hue province, the change of name and type of enterprise of Vietravel Airlines is in accordance with the provisions of law. Invested by Vietravel Group, Vietravel Airlines officially operated the first commercial flight connecting Ho Chi Minh City - Hanoi on January 25, 2021. Mr. Nguyen Quoc Ky, Chairman of the Board of Directors of Vietravel Airlines, assessed that the airline is an important piece, contributing to the completion of the multi-dimensional tourism ecosystem, combining multi-modal transportation that the Group is aiming for with the mission of connecting and promoting the development of famous tourist destinations in Vietnam and internationally, in order to bring customers unique aviation and tourism products, comfortable experiences and sublime emotions on each flight. Currently, Vietravel Airlines is operating 2 A321s and 1 A320 on a number of domestic regular routes and international charter flights. By the end of October 2024, Vietravel Airlines transported 845,102 domestic passengers and 239,000 international passengers, ranking above 2 airlines, Pacific Airlines and VASCO. “With changes related to the operating model and charter capital scale, we can hope for an early boost in the operations of Vietravel Airlines - the youngest airline in the Vietnamese aviation market,” an expert commented.
Source: https://baodautu.vn/de-xuat-thay-doi-mo-hinh-tai-vietravel-airlines-d229408.html 
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