Vietnam’s new Vinpearl cancelled before first flight

Vietnam’s largest conglomerate, Vingroup, has decided to scrap its plans for an airline business. Vinpearl Air should have been launched this summer, with plans to grow to a fleet of 30 aircraft by 2024. It seems worries about Vietnam’s aviation market becoming saturated are at the heart of Vingroup’s decision. Vinpearl Air was mooted last summer to become the 6th airline in Vietnam, following hot on the heels of newly launched Bamboo Airways. However, it now seems that the dream of the Vingroup to enter the aviation industry has been shelved, as the conglomerate is reported to be abandoning the project. As Vietnam’s largest conglomerate, there were high hopes Vingroup could make a great success of the airline business. Just like Tata Sons in India have done with Vistara, the Vingroup’s airline would have had substantial financial backing to compete in the increasingly crowded Vietnamese market, a market which is pegged for exponential growth over the next decade or so. The airline was slated to begin operations in the summer this year, operating out of Vietnam’s Noi Bai airport in Hanoi. Vinpearl Air would operate both domestic and international services, growing its fleet to 30 aircraft by 2024.<br/>