How many airlines should Vietnam have?

The number of airlines in Vietnam is less than one-third of Thailand, which has 13 regular airlines and 10 chartered flight service providers. Kien proposed that the watchdog agency license more air carriers to satisfy the high demand for air transport.

In 2017, Kien mentioned a plan in early 2018 for a joint venture airline where Kien would be the CEO. However, there was no further information about the licensing.

The Vietnamese aviation market is exploited by 68 foreign airlines from 25 countries and territories, and five Vietnamese airlines, namely Vietnam Airlines, Vietjet Air, Jetstar Pacific, Vasco and Bamboo Airways.

In the international market, the 68 foreign and three Vietnamese airlines fly 130 air routes that connect Hanoi, HCM City, Da Nang, Nha Trang, Phu Quoc and Hai Phong in Vietnam with 28 countries and territories.

In the domestic market, they fly 50 domestic air routes that link Hanoi, Da Nang and HCM City with 18 local airports.

More airlines are queuing up for licenses to take off. Vietravel, a travel firm, has submitted the plan to set up Vietravel Airlines, expected to be headquartered in Thua Thien-Hue province.

Meanwhile, Vietstar is awaiting the license for Vietstar Airlines.

Sources said that the licensing to Vietstar Airlines will only be considered after the expansion and upgrade of Tan Son Nhat Airport is completed.

Meanwhile, Nguoi Lao Dong quoted its sources as saying that more domestic airlines would turn up in two years.

The source said though the Vietnam’s aviation market is still large, watchdog agencies will have to think carefully before granting licenses, because the operation of airlines depends on many factors, including infrastructure conditions.

At present, while aviation infrastructure conditions remain poor, the number of international flights to Vietnam has increased rapidly, causing overloading at airports.

According to the Civil Aviation Authority of Vietnam (CAAV), there are more than 220 Vietnamese aircraft, while 10 more airplanes will arrive in the first quarter of the year. With more aircraft, it will also have to have more aircraft supervisors. 

Currently, CAAV only has nearly 30 supervisors, satisfying 30 percent of the demand, while the other supervisors are hired veteran pilots.

CAAV’s head Dinh Viet Thang confirmed that the number of airlines in Vietnam will also be determined by management capability and security conditions.

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Mai Lan