Vietnamese tour operator Vietravel plans to issue non-convertible bonds worth $30 million for the establishment of Vietravel Airlines.

The company is seeking its shareholder’s opinion regarding the bond sale. The company has also asked its shareholders to abandon its initial plan to issue 80,000 non-convertible bonds. The same was approved earlier in April.

According to media reports, the company has submitted its plan to sell bonds to the State Securities Commission for approval. The bonds have a two years term and have an interest rate of 11 percent.

Earlier in February, the company established Vietnam Travel Aviation in Thua Thien – Hue Province with an initial investment of $43 million but doesn’t have an aviation license as of yet. According to local media, the airline company would initially operate three Airbus A320 or Boeing 737 aircraft, and would raise its fleet to eight after five years of operation. The airline will provide both domestic and international services and will carry five million passengers annually.

Currently, there are five airlines carriers operating in the country- Vietnam Airlines, Vasco, budget carriers VietJet Air and Jetstar Pacific, and newly-formed Bamboo Airways. AirAsia is also planning to enter the Vietnam aviation market.

Recently, the Vietnam Civil Aviation Authority has issued an aircraft operator certificate to Vietstar Airlines, allowing it to use two types of aircraft, Embraer Legacy 600 and Beechcraft King Air B300.

The introduction of Vietravel’s airline unit will only improve Vietnam’s air transport capacity and contribute to its socio-economic development.

Founded in 1995 and based in Ho Chi Minh City, Vietravel has seven overseas offices in countries such as Australia, the United States, France, Singapore, Cambodia, and Thailand besides a network of domestic branches. The company announced its first-quarter profit of $216,000.