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.
Six airlines have licenses to operate, while two airlines have applied for licenses at state management agencies.
The Civil Aviation Authority of Vietnam (CAAV) is encouraging the establishment of new carriers, but it will not grant operating licenses to carriers that fail to present plans for training human resources, particularly pilots.
Vo Huy Cuong, deputy head of the Civil Aviation Authority of Vietnam (CAAV) on July 10 confirmed that CAAV has not received an application for a license from Vinpearl Air JSC.
More foreign air carriers have opened new direct air routes in the growing aviation sector in Vietnam.
Pilots have more flying hours than allowed, while air carriers are paying high salaries to attract pilots or poach them from other airlines.
Businesses say that the air transportation market is becoming saturated and growth has slowed down. The era when air carriers obtained growth with an increased number of passengers appears to be over.
Vietnam’s aviation market has shown signs of a growth slowdown since 2017 after a hot development period that extended to 2016.
Chair of Vietnam Airlines Pham Ngoc Minh says the nation’s flag air carrier is planning to raise wages for its pilots equal to 90 percent of the average level in Southeast Asia.
Bamboo Airways, which joined the domestic market in late 2018, has had a clash with Vietnam Airlines, the veteran.
Jetstar Pacific (JPA), one of the earliest airlines present in Vietnam, has been taking losses for years.
The Civil Aviation Authority of Vietnam (CAAV) and France’s ADPi company signed an MoU in Hanoi on April 24 on cooperation in studying a project on expanding and outlining a detailed master plan on Noi Bai International Airport.
The airline catering market has become more crowded with the appearance of newcomers.