VASCO was established by government directive in 1987, and was originally a part of Vietnam Airlines, the national carrier.[3] It began scheduled passenger flights independently of Vietnam Airlines in 2004,[4] and approval has been given for it to be partially privatized.[5] It has been reported that Vietnam Airlines wishes to use VASCO as a basis for a low-cost carrier, established in conjunction with foreign partners.[5][6]
It is believed[when?] that Vietnam Airlines, VASCO's parent company wants to change the airline into a low-cost model, therefore changing VASCO's operational name to Viet Air. It is also believed that the airline would be serving domestic flights within Vietnam to destinations that are low-yielding as well as competing head on with Jetstar Pacific and VietJet Air. Vietnam Airlines would add more aircraft to Viet Air's fleet if the plans are materialized.
^"Home." Vietnam Air Services Company. Retrieved on December 21, 2010. "Copyright by VIETNAM AIR SERVICES CO(VASCO) B114 Bạch Đằng St,Ward 2, Tan Binh Dist, Ho Chi Minh City, Viet Nam"
