That Bamboo Airways has received a green light from Vietnam’s Ministry of Transport to increase its fleet to 30 aircraft by 2030 is making the competition among domestic carriers inevitably fiercer as the airlines vie for market share.
In 2018, the aviation market in Vietnam was dominated by two sides. Vietnam Airlines Group, which consists of Vietnam Airlines, Jetstar Pacific and Vasco, took the upper hand with total transport volumes reaching to 28 million passengers, taking a 56% market share, and the remaining belonged to Vietjet Air with 21 million passengers.
However, the “bipolar” situation may change with the advent of newcomer Bamboo Airways as the local aviation market is projected to grow 5% annually until 2030.
It is expected that over 117 million passengers will be carried in Vietnam by 2023 including around 85 million passengers flown by local carriers, which in turn require the domestic airlines to increase their fleets to 340 aircraft in total.
According to International Air Transport Association, Vietnam is one of the fastest growing aviation markets globally in the past decade with the average revenue growth of 17.4%, double the rate of 7.9% in Asia.
However, the rapid growth also brings about some problems including inadequacies in infrastructure, management, and administration capabilities.
In particular, human resources is the bottleneck of domestic airlines when the training is poor and does not keep pace with the existing development, leading to insufficient manpower, including pilots and other technical forces that embrace flight supervisors, air traffic managers, and aircraft engineers.
Additionally, the rate of delayed and cancelled flights has been reduced however could be increased in the upcoming time unless the state management agencies propose some proper solutions.
When it comes to the general issue of aviation security and safety, Prime Minister Nguyen Xuan Phuc assessed the country’s aviation industry has prospered recently with the debut of new airlines, responding to the requirement of traveling. However, there are still some problems that need to be solved including unfair competition between the airlines.
The PM also requested the carriers operate in accordance with the approved plans, the airport bases must run without congestion or overload. Hanoitimes
Bamboo Airways will start building an aviation academy this year to improve its human resource management.
The Ministry of Transport agreed on the need for Bamboo Airways, a subsidiary of FLC Group, to increase its fleet to 30 aircraft by 2023 after considering opinions of relevant parties at a meeting on June 21.
The Ministry of Transport have allowed Bamboo Airways and Vietjet Air to buy 23 planes by the end of this year.