Vietnam Airlines is seeking government approval to separate its short-haul operations and aviation services from its mainline business by establishing a new subsidiary carrier.

Domestic operations, services to Cambodia, Laos and Myanmar, and some international charter operations would come under the wholly owned subsidiary, says Vietnam Airlines marketing planning director Luong Hoai Nam. Aviation services, such as refuelling, would be transferred.

The carrier is thought to be looking to cut non-core activities to focus on medium- to long-haul passenger and cargo transport. The subsidiary may save money by using fewer employees and more productive work practices. It would operate alongside Pacific Airlines, which is 57%-owned by Vietnam Airlines.

Source: Flight International