News
Vietnam’s latest start-up linked to Korea’s SK Group
July 19th 2019
Vinpearl Air owner Vingroup received US$1b investment from SK, which is weighing Asiana bid. Read More »
Vietnam’s aviation landscape was said to be crowded when major airlines were only Vietnam Airlines, Jetstar Pacific and VietJet. Then Bamboo Airways entered with high-octane growth and other start-ups flirted with the market.
The latest planned entrant is Vinpearl Air, part of the Vingroup, a real estate, retail and services conglomerate. Vinpearl was previously called VinAsia. While Vinpearl adds to a crowded sector, one indirect shareholder comes from an even more lively market: Korea. SK Group invested US$1 billion in Vingroup in April.
SK is considered to be one of the leading companies interested in taking over Kumho’s stake in Asiana Airlines. SK has not had direct aviation exposure in recent times, but hired former Jeju Air CEO, Ken Choi, to head business development, leading to speculation SK would pursue aviation investments. But it was assumed SK would pursue local opportunities.
SK’s investment is not directly in Vinpearl, but in Vingroup. Vinpearl has initial capital of VND1.3 billion (US$60 million). That is the exact minimum required for airlines planning to operate more than 30 aircraft domestically and internationally under new regulations. Shareholders are Vingroup company VinAsia Tourism Development (45%) as well as two individuals of Vingroup: Hoang Quoc Thuy (30%) and Pham Khac Phuong (25%).
Vietnam’s rapidly growing sector has raised questions about the talent pipeline. Vingroup is partnering with CAE to establish the VinAviation School and Vinpearl Air Training Centre. They aim to graduate upwards of 400 pilots and mechanics for VinPearl and other airlines.
