Airlines have also been feeling the pinch of the rising overload at Tan Son Nhat International Airport in HCMC.

Passengers wait for boarding at Tan Son Nhat International Airport in HCMC. Airlines have also been feeling the pinch of the rising overload at Tan Son Nhat International Airport 

Vietnam Airlines lost VND188 billion (US$8.3 million) last year due to its flight delays triggered partly by airport overload. 

The already-licensed Vietstar Airlines cannot launch commercial flights until Tan Son Nhat has been expanded.

In its 2016 business report which Vietnam Airlines will present at its general meeting next week, the national flag airline said heavily overloaded airports, especially Tan Son Nhat, forced it to manage an extra 1,392 flight hours last year, which cost VND188 billion.

Moreover, according to Vietnam Airlines, air carriers will have to reduce their flight frequencies by 30% in late 2017 when parts of Noi Bai and Tan Son Nhat airports are closed for repair and upgrade.

Although Vietstar registered for scheduled commercial flights in May 2016, the Government has asked it to wait until airport expansion is done. 

Vietstar has actually operated chartered flights and provided aircraft repair and maintenance services since it was set up in 2010.

Since Vietstar chose Tan Son Nhat as its base airport, the Government told the Ministry of Transport to not consider the carrier’s operation plan until a new terminal and a parking area at Tan Son Nhat are up and running. This means the airline will have to wait at least three years.

Malaysia’s low-cost airline AirAsia has set up a joint venture with Thien Minh Group to provide aviation services in Vietnam but till now, it has not submitted full business registration documents to the Government due to unfavorable conditions.

FLC Group is preparing business registration documents for submission to the Civil Aviation Administration of Vietnam to establish an airline that would be called Bamboo Airways. 

The group intends to run direct services between key tourist destinations, instead of Noi Bai and Tan Son Nhat airports.

Prime Minister Nguyen Xuan Phuc earlier this week told the Ministry of Transport to hire a foreign consultant to conduct a study into the possibility of building a third runway at Tan Son Nhat to allow it to increase its passenger handling capacity.

SGT