Vietnam has approved the establishment of a third private airline, ending a suspension on new licenses. The proposed new airline is a regional operator to be called Mekong Aviation. Operations, based on Phu Quoc island, are to begin in 2010. The carrier plans a fleet of 10 aircraft, the maximum allowed. The civil aviation administration has also received an application for another proposed private airline, Saigon Air.

The Xi’an Aircraft MA600 turboprop has made its first flight ahead of entry into service, expected late next year. The Chinese manufacturer, part of the Avic 1 conglomerate, is planning a production capacity by 2010 of 10-15 units a year for the aircraft, presumably including its MA60 predecessor, eventually rising to a full rate of 30 a year, depending on demand. Sales of more than 300 are forecast, of which 120-150 should come from the domestic market.

China Eastern will be allowed to resume flights on two of the routes that it lost after its pilots engaged in protest action earlier this year, Chinese media report. The carrier lost rights to a range of services in the southern province of Yunnan as punishment after pilots turned their aircraft back to originating airports in March. It will again be allowed to fly between the provincial capital, Kunming, and two tourist towns, Xishuangbanna and Dali.