More airlines want to take off, though market growth slows
The Civil Aviation Authority of Vietnam (CAAV) has affirmed that Vinpearl Air and Vietravel can meet the requirements for submission to the PM for approval.
Vinpearl Air will be a hybrid between traditional and low-cost models with the total investment capital of VND4.7 trillion. The time to begin domestic and international exploitation has been slated for July 2020 with six aircraft. The fleet will be expanded to 36 aircraft by 2025.
However, the figure has not been fixed yet. CAAV said the fleet of 36 aircraft may exceed the market demand'
As for Vietravel Airlines, it will provide chartered flights to serve tourism, which CAAV thinks needs encouragement because there is no airline in Vietnam providing the service so far.
However, CAAV pointed out that the model of Vietravel Airlines has ‘latent difficulties’ as the carrier’s choice of fly network. Most of the airports it chose are secondary ones.
|Vinpearl Air will be a hybrid between traditional and low-cost models with the total investment capital of VND4.7 trillion. The time to begin domestic and international exploitation has been slated for July 2020 with six aircraft. The fleet will be expanded to 36 aircraft by 2025.|
Vietravel Airlines, for example, chosesm the Phu Bai International Airport in Hue City as the base airport.
Meanwhile, travelers tend to choose departure airports in HCMC, Hanoi, Da Nang and Cam Ranh.
In case Vietravel Airlines cannot perform well with chartered flights, it will have to shift to usual exploitation, i.e. it will use airports of Tan Son Nhat, Noi Bai, Da Nang and Cam Ranh for parking aircraft over night. If so, this will put a burden on the aviation infrastructure.
CAAV advised Vietravel Airlines to build flexible fly schedules in case it uses large airports, because it may meet with difficulties when getting slots, as a newcomer in the market.
If the two airlines get approval, Vietnam will have seven air carriers, including the national flag air carrier Vietnam Airlines, Jetstar Pacific, Vasco, Vietjet Air, Bamboo Airways, Vinpearl Air and Vietravel Airlines.
SSI reported that the passenger and cargo transport both saw the growth slow down in H1 in comparison with 2018.
The number of foreign travelers to Vietnam in H1 increased modestly by 7.5 percent, much lower than the 20 percent growth rate in 2018. The cargo transport also increased slightly by 3.1 percent, lower than the 13 percent of 2018.
According to CAAV, the number of total air passengers was 57.4 million, up by 9.6 percent and the volume of cargo was 746,000 tons, up by 3.4 percent in H1.
The aviation market has seen big changes with new airlines. Bamboo Airways has 4.2 percent of market share. Vietjet Air has increased its market share to 44 percent, while Vietnam Airlines has 35.9 percent. Jetstar Pacific has 13.9 percent and Vasco 2 percent.
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