An executive of VietJetAir told the Daily on Tuesday that the company would organize a function in Hanoi later this week to announce its flight and business plans as well as the license it had received from the Ministry of Transport.

VietJetAir said it would initially fly between Hanoi, HCMC and Danang. Owned by a group of local investors, the company will provide services to as many domestic destinations as possible if they are profitable.

The Hanoi-headquartered company will use Boeing 737-800 and Airbus A320 air-craft with around 175 seats for its domestic and international flights.

In the long-term, VietJetAir plans expansion to regional destinations such as Hong Kong, Bangkok of Thailand, Singapore, cities in southern China, South Korea and Japan.

Most flights will be within one to three hours in the region, where the demand for air travel is growing well, said VietJetAir. "VietJetAir will bring a high level of service, affordable air fares and convenient travel to its customers both in Vietnam and the region."

Domestic and international leisure, tourist and cost-conscious business travelers are VietJetAir's main customers. The carrier will operate based on the low cost structure to offer passengers competitive fares and the opportunity for those people who have never traveled by air.

Unlike usual budget airlines, VietJetAir will provide free small snacks and drinks, and then sell additional food, drinks and other items for passengers aboard its flights.

VietJetAir will sell most of the air-tickets flights online, and also setup a call center for telephone bookings. Passengers will be able to pay by credit or debit card as well as by cash at VietJetAir offices.

VietJetAir will offer low-priced and promotional fares like common budget airlines but had no plans to partner with a foreign airline. The carrier intends to establish a Cadet Pilot Training program to provide opportunities for young Vietnamese to train overseas and return to work for it.

VietJetAir asked the Civil Aviation Administration of Vietnam (CAAV) for approval in mid-September to establish a joint-stock carrier to operate domestic and international air services with total registered capital of VND600bil (US$37.5mil).

The Law on Civil Aviation, effective from January 1 this year, treats investors in the aviation sector on an equal footing. It requires legal capital of at least VND200bil (US$12.5mil) for the air carrier that wants to have one to 10 aircraft for domestic services, and over VND500bil for international services.

Several other local companies have announced plans to establish private air carriers.