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HÀ NỘI — National carrier Vietnam Airlines said it had achieved the business target set by its shareholder last year.
However, the carrier said that with the budget carriers continuously expanding their operations on both international and national routes, the competition had intensified.
In the domestic market, the firm supply was up 32 per cent in 2016 compared with 2015, but the purchasing power increased only 14 per cent, bringing down the average revenue of all airlines by 12 per cent.
Meanwhile, the budget airlines expanded their operation to other regions, including Southeast Asia and Northeast Asia, marking a 14 per cent rise in the market share from 8 per cent in 2015.
Vietnam Airlines said the overload at airports, especially at Tân Sơn Nhất International Airport in HCM City, had resulted in an increase of 1,392 flying hours, incurring an additional cost of VNĐ188 billion (US$6.83 million) to the airline.
The firm predicted high growth in the aviation market this year with 23.6 million international visitors and 31.6 million domestic visitors, a 14.7 per cent and 12.1 per cent increase, respectively, when compared with last year. — VNS
