The move by Vingroup to establish Vinpearl Air once again shows the attractiveness of the domestic aviation market.

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.

Vingroup, the multi-field conglomerate, has taken the first step to join the aviation market, setting up Vinpearl Air JSC, VinAviation School, and VPA Training Center.

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 industry has been witnessing steady 2-digit growth rates over the last 10 years.

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.

VietNamNet Bridge - Tran Trong Kien, CEO of Thien Minh Group, believes the aviation market is still large enough for new air carriers. 

VietNamNet Bridge - Vietnam’s airlines have opened new international air routes and are running more sale promotions, especially to key tourism markets.

VietNamNet Bridge - Soon after the US officially granted non-stop flight permission to Vietnam, domestic airlines set to work to prepare to fly to the US.

VietNamNet Bridge - Air carriers have bought more next-generation aircraft as a part of their expansion plans, but infrastructure has not caught up with the expansion rate.

The national flag air carrier Vietnam Airlines and the private Vietjet Air continue to dominate the domestic aviation market, but newcomers may begin to take away some market share. 

VietNamNet Bridge - Sun Group, FLC and IPP have poured money into aviation infrastructure, which was once thought to be beyond private investors’ capability.

From a small airline with only three aircraft in 2011, Vietjet Air has become a big low-cost air carrier (LCC) with annual revenue of VND50 trillion.

VietNamNet Bridge - The overloading at airports and delays of flights could lead to a drop in tourism, experts say.