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VietNamNews

Aviation market sees new growth impetus

Update: March, 13/2019 - 09:00
Pick-up area at Nội Bài International Airport. Expanding aviation infrastructure is a pressing issue for Việt Nam to meet increasing air travel demand. - VNA Photo
Viet Nam News

HÀ NỘI — Việt Nam’s aviation market is forecast to increase rapidly, fuelled by new growth from the participation of more private carriers and improved infrastructure.

However, it is vital to boost the development of aviation infrastructure as well as service quality.

In early 2019, Bamboo Airways were granted a licence for commercial flights, which offered more options for passengers.

The aviation market in Việt Nam was becoming more competitive, experts said, adding that passengers would benefit from dropping prices and improved service quality.

Lê Cao Cường, director of An Viên Law Firm, said that with more carriers participating in the aviation market, passengers would have greater opportunity to travel by air at more reasonable costs.

The International Air Transport Association forecast the number of airline passengers traveling by 2037 could double to reach 8.2 billion, bolstered by strong demand in the Asia-Pacific region. Việt Nam was one of five markets with the fastest growth rates in air passengers, besides China, the US, India and Indonesia.

According to the Civil Aviation Authority of Việt Nam (CAAV), the country’s aviation market now had the participation of 68 foreign carriers from 25 countries and territories together with six domestic carriers, namely Vietnam Airlines, Vietjet, Jetstar Pacific, Vasco, Hải Âu and Bamboo Airways. Today, there were nearly 130 international flight routes from Việt Nam and 48 domestic routes.

CAAV’s statistics showed domestic carriers handled more than 50 million passengers in 2018, a rise of 14 per cent over the previous year, together with nearly 400,000 tonnes of cargo, up by 26 per cent.

Đinh Việt Thắng, CAAV’s Director, said that with a population of more than 90 million, Việt Nam’s aviation market should have the participation of more domestic carriers to offer more options for passengers and meet the increasing air traveling demand.

Air Asia and Hải Âu in December signed a memorandum of understanding to found a low-cost carrier in Việt Nam.

Vietstar Airlines Multirole Corporation was applying for a licence to operate commercial flights. Tourism company Vietravel also intends to found an airline.

These developments demonstrate the attractiveness of Việt Nam’s aviation market.

However, surviving and growing is another story.

Improving quality

Amid the rapid growth and increasing competition of Việt Nam’s aviation market, improving service quality and passenger experience becomes vital for carriers.

The overloading of major airports such as Nội Bài and Tân Sơn Nhất is also significantly affecting service quality.

Ngô Hồng Minh, head of Vietnam Airlines’ market services department, said that the carriers proposed the CAAV and Airports Corporation of Việt Nam (ACV) hasten the upgrade and expansion of airports to enhance their passenger handling capacity, especially Nội Bài and Tân Sơn Nhất.

According to ACV, the airline industry has three important components: airlines, infrastructure and operation systems.

It was important to develop all the components for the industry’s rapid but sustainable growth, it said.

AVC said that airports were expected to handle 131 million passengers and 2.2 million tonnes of cargo in 2020, putting pressure on the airport system.

By 2020, Việt Nam plans to have 10 international airports and 13 domestic airports. The total number of airports will increase to 28 by 2030, according to AVC.

Experts said it was important to have proper airport planning with regards to tourism and socio-economic planning and develop good transport connectivity to the airports.

Minister of Transport Nguyễn Văn Thể said that the new carriers and airports would be enhanced to ensure service quality, safety and security. — VNS

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