return icon Vietnamnet.vn

Multi-trillion VND flow re-divides aviation market

Investors are queuing up to enter the aviation market with trillions dong worth of capital, which is expected to remap the market.

A report from the Civil Aviation Authority of Vietnam (CAAV) showed that the growth of the aviation market has slowed down.

 

{keywords}

The domestic market share held by airlines

 

 

The number of international and domestic passengers in H1 increased by 14 percent and 7.6 percent compared with the same period last year, respectively, while the general number increased by 9.6 percent.

However, the aviation market remains attractive and the growth rate is expected to remain at around 10 percent per annum, double the region’s and the world’s growth rate.

The number of international and domestic passengers in H1 increased by 14 percent and 7.6 percent compared with the same period last year, respectively, while the general number increased by 9.6 percent.

That explains why more airlines are still queuing up to enter the aviation market, though it grew more slowly in H1. Earlier this year, Bamboo Airways was the only air carrier waiting for a license. There are now three carriers lining up.


Most recently, Vietravel announced it has completed the issuance of VND700 billion worth of bonds to prepare capital for the establishment of an airline. The bond buyers are domestic institutions which enjoy a fixed 9.25 percent interest rate in the first 15 months and 11 percent in the next months.

Vietravel has prepared for long-term capital mobilization by listing shares on UpCom on September 27. Vietravel shares entered UpCom at VND40,000 per share and the company’s capitalization value is VND500 billion.

Bloomberg has reported that Bamboo Airways hopes it can raise $100 million worth of funds from the IPO to be made next year. Prior to that, in early September, Bamboo Airways raised charter capital from VND700 billion to VND1.3 trillion and plans to use 30 aircrafts instead of 10.

Vinpearl Air has not shown its operation plan in detail but its expected charter capital is VND1.3 trillion.

Meanwhile, there is not much information about Kite Air, because it hasn’t list shares. The airline has charter capital of VND1 trillion.

Great ambitions

There are many barriers for entry in the aviation sector. However, investors are still queueing up to join the growing market.

Nguyen Thi Phuong Thao of Vietjet Air is confident about the expansion strategy. Vietjet Air is opening international routes and seeking additional income from non-transport services.

Meanwhile, Bamboo Airways, as reported by Bloomberg, hopes it can obtain 30 percent of domestic market share by 2020. The owner of Bamboo Airways has said it would be the first airline to open air routes to the US.

 Kim Chi

Aviation regulator tells airlines to be cautious in expanding fleets

Aviation regulator tells airlines to be cautious in expanding fleets

The Civil Aviation Authority of Vietnam (CAAV) has advised local airlines to refrain from adding significant numbers of new aircraft, noting that their fleets could far exceed passenger and cargo transportation needs.

Vietnamese aviation market under double pressure

Vietnamese aviation market under double pressure

The Vietnamese aviation market grew slowly in the first half of 2019, falling far short of the double-digit average growth in 2013-2018.

MORE NEWS

EuroCham Chairman praises strong and forward-looking government

Vietnam’s recovery has been ensured by strong and forward-looking government support which helped to bring in more high-profile FDI projects

Many firms suspend raising capital from stock market

Many enterprises have either stopped mobilizing capital or changed their capital-raising plans on the stock market amid existing uncertainties and disadvantages.

HCM City runs out of Covid-19 vaccines

HCM City has run out of Covid-19 vaccines over the past 10 days, said Nguyen Hong Tam, the deputy director of the municipal Centre for Disease Control and Prevention.

VIETNAM NEWS HEADLINES SEPTEMBER 30

Chinese police hand over wanted man to Lao Cai authorities

Foreign-invested enterprises face up to procedural barriers

Administrative procedures such as a prolonged timeline for obtaining business licences, as well as overlaps in the legal framework, are continuing to affect the expansion plans of many foreign-invested enterprises in Vietnam.

Reisereporter.de: Vietnam among ten attractive destinations to escape Europe’s winter

With its year-round warm tropical climate, breathtakingly beautiful scenery, and exciting culture, Vietnam is gradually becoming an attractive destination for German tourists.

VIETNAM BUSINESS NEWS SEPTEMBER 30

Real estate sector faces debt default risk

Shan Tuyet tea, valuable timber plants named ‘Vietnam Heritage Trees’

More than 1,300 Shan Tuyet tea plants in Ha Giang province and a group of valuable timber trees in Dak Nong province have been recognised as “Vietnam Heritage Trees”.

Fast fashion brands scale up for growth

Surviving and developing in a competitive fast fashion market remains a challenge for many brands, especially for newcomers.

Arguments arise as properties required to be traded on exchange

Controversy has arisen over the Ministry of Construction’s draft of the amended law on real estate trading as it requires real estate products to be traded on an official exchange.

Boeing accelerates cooperation with Vietnamese suppliers

Boeing, the world’s leading aerospace company based in the US, are accelerating cooperation with Vietnamese suppliers and universities to provide a foundation for long-term industrial growth.

Expecting coffee exports to hit a record $4 billion

Vietnam Coffee Cocoa Association (Vicofa) forecasted that if the export price of coffee remained at a high level, as in the first half of the year

Major investors worry as stock market weakens

The stock market boards have been covered with red amid investors’ rising caution. There are few buyers, while selling pressure still exists. Foreign investors’ behavior has affected the market.

Vietnam sees great potential in ASEAN halal market

Despite opportunities available in the ASEAN halal food market, Vietnamese exporters have to date exported only a small amount of halal products to some countries in the region.

Vietnam is becoming a beacon in the region: The Brussels Times

The Brussels Times of Belgium has run an article highlighting that Vietnam is becoming a beacon in the region with the capacity to control inflation and maintain economic growth at a high level despite turbulent international affairs.
back_to_top