Vietnam Airlines’ spokesperson Le Hoang Dung said the national flag carrier was planning to privatise VASCO - Vietnam Air Services Company.

The ATR72-500

VASCO was established in 1987. At first, it only provided small aircraft including AN2, AN30 and King Air B200 for some air transport routes as well as aerial photography, geological surveys, emergency medical services and search and rescue missions.

Vietnam Airlines recently proposed to partly privatise the company with minimum chartered capital of VND300bn (USD13.5m) and a maximum of 10 aircraft fleet. Vietnam Airlines will retain a 51% controlling stake while 49% will be sold to Techcombank. The proposal was approved by Ministry of Transport on March 7. Vietnam Airlines' capital contribution is covered by ATR72-500 aircraft, spare engines and other assets. Techcombank's contribution would be in cash.

"In the near future, the company will continue to exploit the ATR72-500s which are suitable for inbound flights or to island districts that currently can't receive jet aircraft like Boeing 777, Airbus A320 or A312. These routes have been calculated to ensure the company's financial efficiency," said Le Hoang Dung.

It was initially suggested that VASCO should not become a true independent company if Vietnam Airlines still holds 51% stake. Vietnam Airlines was asked to publicise the restructuring plan and requirements for an investor. However, Vu Anh Minh, director of Enterprise Management Department, under the Ministry of Transport, said VASCO already had experience in aerial transport so what they needed most was investors with strong financial capacity.

He said, "Vietnam Airlines is free to work with other firms. In this case, I think we'll see profits. Vietnam Airlines reported profits last year after the restructuring at Jetstar Pacific."

In 2012, Vietnam Airlines acquired 70% of Jetstar Pacific to save the low-cost carrier from bankruptcy. Australian airline Qantas owns the remaining 30%.

When being asked whether the goal of earning VND1.94bn in profit for 2016-2018 period was too low compared to VASCO's minimum capital of VND300bn, Minh said they would have to face many difficulties at first. "Restructuring and other investments are needed so they will have to spend lots of money and deal with some big issues," he said.

Dtinews