return icon

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.

Vietnam now has 1.9 aircraft for 1 million people, while Thailand has 4.7 and Malaysia 9.5. Vietjet Air released the figures to prove that Vietnam still has room for more air carriers.



Of six airlines licensed, five are operational, including Vietnam Airlines, Vietjet Star, Jetstar Pacific, Vasco and Bamboo Airways.

Meanwhile, Vietstar Airlines has just received an AOC (aircraft operator certificate) from CAAV, and Vinpearl Air and Vietravel Airlines are awaiting licenses.

Nguyen Quoc Ky, CEO of Vietravel, said at a tourism conference in Thua Thien-Hue province recently that great potential exists in the aviation industry thanks to the population of 100 million, and the high number of foreign travelers (15.5 million) which increases steadily year after year.

Vietnam now has 1.9 aircraft for 1 million people, while Thailand has 4.7 and Malaysia 9.5. Vietjet Air released the figures to prove that Vietnam still has room for more air carriers.

Each airline is following its own business strategy. Bamboo Airways aims to become a 5-star airline while Vingroup joins forces with CAE Oxford to set up a school to produce high-quality workers for the aviation industry called VinAviation School. Meanwhile, Vietravel Airlines has decided to provide chartered flights.

According to Ky, in 2019, Vietravel plans to serve 930,000 travelers, an increase of 9 percent over last year, and if Vietravel Airlines obtains a license, this would give the travel firm a great advantage in attracting tourists.

Analysts all say that the market is large enough for newcomers, but they warn that big challenges are ahead.

Vietstar Airlines plans to use five aircraft in the first phase of operation and arrange parking lots for two aircrafts. However, it still has not begun operation.

Vietjet Air has been growing rapidly since it provided the first commercial flight some years ago with satisfactory profits. However, according to Everest Securities, its performance may decline because its fleet has been expanding rapidly within a short time and problems have occurred with aircraft recently.

Jetstar Pacific only began making profit in 2018 and the first six months of 2019, while it incurred the loss of hundreds of billions of dong each year in 2016-2017 because of the air fuel price and exchange rate fluctuations, and because of the strategy on lowering the airfare to attract passengers.

As for Bamboo Airways, Trinh Van Quyet, its president, said at the FLC shareholders’ meeting in late June that the airline still cannot make a profit. By April 30, 2019, or after three months of operation, Bamboo Airways had incurred a loss of VND300 billion.

Analysts point out that the biggest problem for airlines now is the lack of pilots. It takes at least 3-4 years to train an Airbus A320 and A321 pilot and 7-8 years to train a pilot of A350 and Boeing 787. Even if Vingroup begins enrolling students for training in August, it will not be able to satisfy Vinpearl Air’s needs in the immediate time.

Mai Lan 


Vietnam Airlines uses large-body Boeing 787-10 aircraft on Vietnam-RoK route

Vietnam Airlines uses large-body Boeing 787-10 aircraft on Vietnam-RoK route

National flag carrier Vietnam Airlines has put the Boeing 787-10 Dreamliner into service on the route between Vietnam and the Republic of Korea (RoK).

Passengers to pay $8-10 for using wifi service on Vietnam Airlines’ flights

Passengers to pay $8-10 for using wifi service on Vietnam Airlines’ flights

Vietnam Airlines has announced to provide Wifi on some of its flights using Airbus A350 aircraft from October 10.  


Attractive sites in HCM City vandalised with graffiti

Multiple sites in HCM City, including bus stops, metro trains and the newly opened Thu Thiem 2 Bridge, have been vandalised with graffiti.

FDI poured into real estate sector doubles

Real estate sector attracted 3.5 billion USD in foreign direct investment (FDI) the first nine months of this year, accounting for mearly 19% of total FDI that the country lured in the period, coming second among sectors in terms of FDI attraction.

Gia Lai province has new Chairman

The Government has confirmed Mr. Truong Hai Long as new Chairman of the Gia Lai provincial People's Committee.

Investors dump shares in panic, VN-Index drops nearly 46 points

The VN-Index officially lost the 1,110-point mark, retreating to the bottom made in February 2021 in the first trading session of October on October 3.

First Vietnam monkeypox case returns from Dubai

The Ministry of Health confirmed on October 3 that a woman returning from Dubai has infected with the monkeypox virus, the first case recorded in Vietnam so far.

Coca-Cola injects US$136 million into Long An plant

Coca-Cola Beverages Vietnam Co., Ltd is poised to start development on a beverage factory with total investment capital exceeding US$136 million in Phu An Thanh Industrial Park of Ben Luc district in the southern province of Long An.

List of 48 websites showing signs of law violation announced

The Ministry of Information and Communications (MIC)’ Authority of Broadcasting and Electronic Information has announced a list of 48 websites showing signs of law violations as of the end of the third quarter.

Secretary of Hai Duong Provincial Party Committee expelled from Party

The Party Central Committee decided to expel Secretary of the Hai Duong Provincial Party Committee and Chairman of the provincial People’s Council Pham Xuan Thang from the Party during the first working day of its sixth plenum in Hanoi on October 3.


Hanoi seeks UNESCO's recognition for Mo Muong

Seven must-visit destinations in Vietnam for coffee connoisseur

From the 19th century until now, coffee has taken a journey to become an irreplaceable part of Vietnamese culture and life.

Petrol prices fall to over a year record low of VND21,000/litre

Petrol prices tumbled to the lowest level in more than a year in the latest adjustments made on October 3 by the Ministries of Industry and Trade and the Ministry of Finance.

Foreign ODA and concessional loans reach 15.5% of target

Disbursement of foreign official development assistance (ODA) and concessional loans has been slow, achieving only 15.48% of the target, the Ministry of Finance reported.

More foreign visitors to HCMC signals thriving tourist season

Roughly 100 French, American, German tourists traveled to Ho Chi Minh City on French Le Laperouse yacht of Ponant after the last visit in mid-November 2019 signaling a thriving tourist season.

First monkeypox infection detected in HCM City

The Ho Chi Minh City Department of Health has just announced the first reported case of monkeypox in Vietnam.


2.97 billion USD in FDI poured into HCM City in 9 months