return icon Vietnamnet.vn

Aviation industry forecast to face a hard year in 2021

Despite a recovery in the final months of this year, the aviation industry is forecast to face further difficulties in 2021.

{keywords}
2021 will still be a difficult year for the industry as it has no room for further recovery until international flights are reopened. — VNA/VNS Photo 

The recent recovery was thanks to a complete restoration of domestic routes and the continued good performance of freight transport.

As of November, the total number of flights decreased by 23 per cent compared to the same period last year but strongly recovered from a decrease of 92 per cent in April.

The most effective route was HCM City - Hanoi with 540 flights per week, reaching an occupancy rate of about 90 per cent.

However, commenting on the prospects of the aviation industry, Mirae Asset Securities Vietnam Co (MASVN) believes 2021 will still be a difficult year for the industry as it has no room for further recovery until international flights are reopened.

MASVN explained the current low fares are helping push up the demand for air travel on domestic routes. However, airlines can’t further cut the fares as they are too low. If airlines continue to reduce fares, it will be difficult to make profits.

"In the context of a fiercely competitive domestic market, we believe that the business situation of Vietnamese airlines will hardly improve further until the international routes are reopened," MASVN experts told vietnamfinance.vn.

With only domestic routes operating, the competition in the aviation industry next year will be fiercer. All aircraft are now converging on domestic routes to improve cash flow. Meanwhile, Vietjet Air has received 11 new aircraft, bringing the total number of aircraft in operation to 88. Bamboo Airways reduced two A320s but received four small aircraft E195, bringing its fleet to 26.

In addition, the aviation industry also has to compete against other transportation means like passenger cars and trains which have also applied fare discounts from 15 per cent to 50 per cent.

MASVN experts estimated it would take about four months to vaccinate 30 per cent of the US population and it was the minimum rate required to fight the COVID-19 pandemic. For other countries less developed than the US, the time to hit 30 per cent will be longer.

"International flights are likely to reopen as soon as the pandemic is repelled and the transport of international passengers will begin to recover gradually from that time. However, we expect the recovery rate will be slow, caused by isolation rules and restricted tourism demands in the wake of difficulties due to the pandemic,” the experts said.  VNS

Covid-19 takes a heavy toll on Vietnam aviation industry

Covid-19 takes a heavy toll on Vietnam aviation industry

The aviation industry has experienced a sharp decrease in passenger volume this year.

Aviation industry awaits new bigger bailout

Aviation industry awaits new bigger bailout

Private airlines including Vietjet Air and Bamboo Airways struggling to survive are looking forward for a new support package to maintain their operations.

MORE NEWS

French Development Agency pledges more support for projects in Vietnam

The French Development Agency (AFD) will increase its support and donations for projects funded by French non-governmental organisations and associations in Vietnam.

Vietnam seeks stronger education partnership with US

Minister of Education Nguyen Kim Son on September 25 concluded his US working trip that aimed to strengthen education partnership between the two countries.

VIETNAM NEWS HEADLINES SEPTEMBER 25

Central localities likely to be hit by typhoon Noru

AI integration the inevitable path ahead

Big Data and AI will be the optimal tools to run factories in the future and digital transition will help firms optimise costs and cut emissions.

Ministry to scrutinise VietGap certifications after fake labels found on vegetables

The Ministry of Agriculture and Rural Development is investigating reports of vegetables sold in supermarkets being marked with fake Vietnamese Good Agricultural Practices (VietGap) labels.

E-commerce sector in dire need of qualified candidates

The tight supply of qualified candidates in the labour market is a glaring issue facing e-commerce firms, according to insiders.

Unique green moss-covered homes of the Tay Con Linh mountain range

It is an ideal environment for plants to flourish and thrive, including thick green moss, which ethnic people use to cover the palm-leaf roofs of their homes.

Farmers save wild birds and the environment

Farmers in different provinces throughout Việt Nam have for years spent time and effort to save wild birds, giving them a home to nest and lay eggs.

Deputy PM highlights significance of int'l solidarity, cooperation at UN session

The strengthening of international solidarity and cooperation is key to addressing interlocking global challenges, affirmed Permanent Deputy PM Pham Binh Minh while addressing the general debate of the 77th Session of the UN General Assembly.

Huge potential for luxury real estate in Vietnam

The branded residence market is gaining a stronger foothold in the Vietnamese market with potential to further develop, shaping the lifestyle of the country’s elite, according to experts.

VIETNAM BUSINESS NEWS SEPTEMBER 25

Action plan to promote green growth in agriculture

Vietnam’s economic growth counts on high-tech FDI

Vietnam’s economic growth has been accelerating in 2022, with experts considering high-tech foreign investments as a driver.

The “seven-star” islands in Quang Ninh

Along with crystal blue sea and beaches, the 7 Sao (seven star) islands also have caves and primeval forests.

Customs you only see in Vietnam

The travel site Culture Trip has listed a number of Vietnamese customs that often surprise foreign tourists:

Investors and buyers play waiting game in credit switch

The State Bank of Vietnam finally created extra credit room for some banks on September 7. However, the extension is deemed low and may not help real estate businesses and homebuyers access feasible capital sources for their projects.
back_to_top