Vietnam’s aviation market heats up with new carriers

Vietnam will catch up with Thailand in the number of domestic air carriers, just second to Indonesia, when all air carriers that have applied for a license begin operation.

Vietstar Airlines, after getting AOC (air operator’s certificate), has become the sixth air carrier of Vietnam. This is the first air carrier to have commercial AOC for business jets in Vietnam.

Vietnam’s aviation market heats up with new carriers



Meanwhile, president of Thien Minh Group Tran Trong Kien has submitted documents to the Quang Nam Planning and Investment Department to seek licenses for KiteAir. The airline, if licensed, would have a fleet of 30 aircrafts by 2024.

Vietravel, a well known travel firm, also wants to set up an airline of its own, Vietravel Airlines, believing that transport service is a core factor to attract travelers.

The Civil Aviation Authority of Vietnam (CAAV) said Vietravel has enough conditions to set up an airline and the investor is awaiting for approval from the PM for the airline which specializes in serving tourism.

As a travel firm, Vietravel serves 1 million travelers a year. This means that Vietravel Airlines has a stable number of clients for its operation.

Vietstar Airlines, after getting AOC (air operator’s certificate), has become the sixth air carrier of Vietnam. This is the first air carrier to have commercial AOC for business jets in Vietnam.

If its application gets approval from appropriate agencies, Vinpearl Air would be the next player in the aviation market. This will be a very strong rival as it belongs to a powerful conglomerate – Vingroup -- which has powerful financial capability and a high number of resorts and real estate throughout the country.

 


Analysts say that if Vinpearl Air sells combo services of hotel rooms and air tickets, it would attract a high number of passengers.

With new names, the Vietnamese aviation market is expected to be busy with nine airlines – Vietnam Airlines, VASCO, Vietjet Air, Jetstar Pacific, Bamboo Airways, Vietstar Airlines, Vinpearl Air, Vietravel Airlines and KiteAir.

According to Pham Nguyen Tung from Vietjet Air, Vietnam has 1.9 aircraft for 1 million people, while the figures are 4.7 in Thailand and 9.5 in Malaysia.

According to IATA (International Air Traffic Association), the number of passengers traveling by air may be double by 2037 to 8.2 billion, mostly thanks to the sharp demand in Asia Pacific. Vietnam is one of five countries with the highest numbers of air passengers.

Meanwhile, the overloading at airports has become a heady issue for Vietnam. Tan Son Nhat Airport in HCMC now has to operate at 130 percent of capacity, and Nha Trang Airport 320 percent.

At the August regular meeting of the Ministry of Transport on August 29, Minister Nguyen Van The said it is necessary to think of expanding Noi Bai Airport in Hanoi, or it will also fall into congestion like Tan Son Nhat in HCMC.

Linh Ha

Vietnam Airlines expands telephone check-in service

Vietnam Airlines expands telephone check-in service

The telephone check-in service of the national flag carrier Vietnam Airlines will be applicable for passengers of domestic flights from Hanoi, starting on September 15.  

More airlines are operating, but challenges lie ahead

More airlines are operating, but challenges lie ahead

Six airlines have licenses to operate, while two airlines have applied for licenses at state management agencies.

 
 

Other News

.
MoIT helps enterprises deal with increasing trade remedy cases
MoIT helps enterprises deal with increasing trade remedy cases
BUSINESSicon  17/10/2020 

Vietnam’s export goods face more trade remedies in the process of deep economic integration, so the Ministry of Industry and Trade has developed solutions for the situation.

ASEAN pushes forward with 5G connectivty cooperation
ASEAN pushes forward with 5G connectivty cooperation
BUSINESSicon  17/10/2020 

As ASEAN chair this year, Vietnam is playing a crucial role in further cementing joint activities within the bloc via boosting the application of high technologies to adapt to Industry 4.0, which is sweeping throughout the region.

Real estate stocks await cash flow
Real estate stocks await cash flow
BUSINESSicon  17/10/2020 

Domestic and foreign capital flow is expected to bolster real estate shares after the COVID-19 pandemic as many investors are paying attention to the industry.

Online exports require professionalism
Online exports require professionalism
BUSINESSicon  17/10/2020 

Using online platforms to boost exports is the fastest way to bring Vietnamese goods to the world, said business leaders and industry experts.

Vietnam to become the 4th largest economy in Southeast Asia: IMF
Vietnam to become the 4th largest economy in Southeast Asia: IMF
BUSINESSicon  17/10/2020 

Vietnam's GDP is estimated to reach US$340.6 billion this year, making it the fourth-largest economy in Southeast Asia.

Special day for two billionaires: mountains of money pouring in
Special day for two billionaires: mountains of money pouring in
BUSINESSicon  18/10/2020 

Techcombank share prices have soared, while the Hoa Phat Group of the billionaire Tran Dinh Long has reported a record 30-year profit. The prosperity of these enterprises has helped their owners earn more money despite Covid-19.

Many hoteliers intend to divest capital due to heavy losses
Many hoteliers intend to divest capital due to heavy losses
BUSINESSicon  16/10/2020 

Over the past eight months, hotel room tariffs have plunged and hotel room occupancy rates have remained low, forcing several hoteliers to divest capital with many financially weak hotels in the local market being put up for sale.

Meeting expectations of the corporate bond market
Meeting expectations of the corporate bond market
BUSINESSicon  16/10/2020 

A new government decree tightens conditions on the issuance of corporate bonds. However, before the decree came into effect, enterprises flooded the market with new issuances.

M&A activities signal promising fortunes
M&A activities signal promising fortunes
BUSINESSicon  17/10/2020 

Although merger and acquisition levels dropped in 2020 across Vietnam, the prospect for such activities remain bright for next year as overseas investors look to local businesses in order to improve market access.

Thai billionaire, European brewer lose money in Sabeco investment deal
Thai billionaire, European brewer lose money in Sabeco investment deal
BUSINESSicon  16/10/2020 

The Sabeco price has seen a strong recovery in the last half a year, but is still at a low price. Both Thai billionaire and the big brewer Heineken have lost money because of the drop in Sabeco share price.

Investors lose billions of VND as land prices keep rising
Investors lose billions of VND as land prices keep rising
FEATUREicon  17/10/2020 

A lot of real estate traders have missed opportunities to make huge profits because they decided to postpone purchasing plans, hoping that prices would decrease further.

Salary increases in 2020 lowest in 10 years: survey
Salary increases in 2020 lowest in 10 years: survey
BUSINESSicon  16/10/2020 

Salaries increased by 6.5% this year at multinational companies (MNCs) and 5.2% at Vietnamese companies, and are forecast to increase by 7 per cent and 7.7% next year, according to the Talentnet – Mercer Total Remuneration Survey.

The right structural adjustments help Vietnam achieve long-term growth aspirations
The right structural adjustments help Vietnam achieve long-term growth aspirations
BUSINESSicon  17/10/2020 

No nation has escaped the threat of COVID-19 to lives and livelihoods, with many countries seeing cases resurge recently. 

State firms more resilient than foreign, Vietnamese private companies: survey
State firms more resilient than foreign, Vietnamese private companies: survey
BUSINESSicon  15/10/2020 

Business resilience is highly correlated with level of digitisation, the Business Pandemic Resilience Diagnostic conducted by Grant Thornton...

Pandemic a test of fire for Vietnamese enterprises
Pandemic a test of fire for Vietnamese enterprises
BUSINESSicon  15/10/2020 

The COVID-19 pandemic has been a test for Vietnamese businesses as many have been and will be struggling to recover for the foreseeable future. 

Five expy projects unlikely to attract private investors
Five expy projects unlikely to attract private investors
BUSINESSicon  15/10/2020 

Although the National Assembly Standing Committee has given its approval to switch three of the eight subprojects of the North-South Expressway from the public-private partnership (PPP) format into wholly State-invested, 

Only 5% FDI projects in Vietnam use high technologies
Only 5% FDI projects in Vietnam use high technologies
BUSINESSicon  15/10/2020 

Vietnam is home to 32,539 valid foreign direct investment (FDI) projects with registered capital of a combined US$381 billion, of which US$233 billion has been fully disbursed.

The Vietnamese brain will decide
The Vietnamese brain will decide
FEATUREicon  16/10/2020 

"Vietnamese have nothing but brains to develop the country in the future." 

Stable outlook expected for Vietnamese dong
Stable outlook expected for Vietnamese dong
BUSINESSicon  16/10/2020 

While Vietnam is at risk of being listed as currency manipulator by the US, such a risk appears low, as the US will likely continue to reduce its dependence on Chinese exports by reorganizing its supply chain with other partners.

Vietnam banking sector to suffer in 2020 before rebounding in 2021
Vietnam banking sector to suffer in 2020 before rebounding in 2021
BUSINESSicon  15/10/2020 

Fitch Solutions expected credit growth to weaken to 7% in 2020 from 13.7% in 2019, but the growth is predicted to pick up to 12% one year later.

 
 
 
Leave your comment on an article

OR QUICK LOGIN