Vinpearl Air, formerly known as VinAsia Trade Development and Services JSC, was established on April 22 with headquarters in Hà Nội’s Vinhomes Riverside Long Biên and registered capital of VNĐ1.3 trillion.

The airline, which will have international routes and use 30 aircraft or more, must have minimum capital of VNĐ1.3 trillion, according to a Government Decree.

The airline's three founding shareholders are VinAsia Tourism Development JSC, which holds 45 per cent of the company, with the remainder held by two individuals, Hoàng Quốc Thủy and Phạm Khắc Phương.

The legal representative of the company is Nguyễn Thanh Hương, who is also chairman of Vinpearl Air's board of directors.

Vingroup and Canada’s CAE Oxford Aviation Academy recently signed a co-operation agreement to train pilots, flight technicians and other personnel in the field of aviation, providing high-tech resources for Việt Nam and the world.

Under the agreement, the VinAviation School and Vinpearl Air Training Centre will be established in Việt Nam.

It is expected that 400 pilots and mechanics will qualify each year under the Civil Aviation Authority of Vietnam (CAAV), US Federal Aviation Administration (FAA) and European Aviation Safety Agency (EASA).

VinAviation School will train pilots and basic mechanics according to CAAV standards and international standards of the FAA and EASA.

Vinpearl Air will offer upgraded courses for pilots, mechanics, operators, crews and other aviation personnel.

VinUni will be responsible for aviation administration, the economics of air transport, and aircraft engineers.

Vingroup CEO Nguyễn Việt Quang said the scarcity of pilots was occurring not only in Việt Nam but all over the world.

“The salary in this industry is very high, ranging from VNĐ100 million and more per month for commercial flight pilots and VNĐ200 million per month or more for the captain – teacher. The training time is only 18-21 months,” Quang said.

Vingroup aims to help reduce the shortage of pilots in the domestic market and to also export pilots to the rest of the world, creating opportunities for the young generation and contributing foreign currency to the country, he added.

Al Contrino, representative of CAE, said that Vingroup’s willingness and the experience of CAE would help the project achieve success within a short time.

‘Hot’ aviation development

Insiders said the race for aviation market share in the Vietnamese market became specially competitive after Bamboo Airways received permission in the beginning of the year from the Ministry of Transport to operate.

With the participation of Vinpearl Air, Việt Nam's aviation industry will have six airlines: Vietnam Airlines, Jetstar Pacific, Vietjet Air, Bamboo Airways, Vasco and Vinpearl Air.

The Transport Ministry targets an average growth rate of 16 per cent per year in the 2015-20 period for the aviation sector and 8 per cent in the 2020-30.period, according to the ministry’s plan for aviation transport development until 2020 and vision to 2030, approved by the Prime Minister.

Việt Nam has been one of the most developed global aviation markets in the past decade, with an average revenue growth of 17.4 per cent, two times higher than the 7.9 per cent average of Asia, according to the International Air Transport Association (IATA).

Data from the CAAV showed that in 2018 the total output of national carrier Vietnam Airlines and its members reached over 28 million passengers, accounting for 56 per cent of market share. Meanwhile, Vietjet Air's transport volume reached over 21 million passengers, accounting for 44 per cent of market share.

Trần Quang Châu, the chairman of the Vietnam Association on Aviation Science and Technology, said that aviation’s rapid growth has revealed urgent problems that need to be resolved immediately.

“These problems are inadequacies in infrastructure and management capabilities," he said. "Human resources are ‘bottlenecks’ of domestic airlines. The main reason is that the training does not keep pace with development, so the shortage of manpower is not only in the pilot force but also in other aviation forces such as flight supervision, air traffic management and aircraft engineers.” — VNS