On the morning of June 21, speaking at the 2024 Annual General Meeting of Shareholders, Mr. Le Hong Ha, General Director of Vietnam Airlines (VNA), said that the airline is experiencing a significant shortage of aircraft. Due to Pratt & Whitney (PW) engine failures on Airbus aircraft, VNA is currently grounding 11 aircraft and is expected to ground six more by the end of the year.

Mr. Nguyen Chien Thang, Deputy General Director of Vietnam Airlines, added that over 1,500 A320 and A321 NEO aircraft worldwide are affected by the recall. Currently, about 340 aircraft (nearly 30%) globally have had to stop operating.

Due to the 250-300 day repair and maintenance period, VNA's aircraft shortage is expected to last until the end of 2024 and gradually decrease by mid-2025.

To compensate for the shortage, VNA has proposed several solutions, including suspending or reducing the frequency of some flights during low-peak and inefficient periods and increasing flight hours. The increase in daily flight hours will help partly mitigate the supply shortage. Additionally, the airline has wet-leased several aircraft, renting two more during the Tet peak and planning to rent five more by the end of the year.

"The airline has solutions to overcome the aircraft shortage, such as restructuring flight routes, reducing low-peak routes, and switching to peak hours and more efficient routes. In particular, the airline continues to open new routes," Mr. Le Hong Ha said.

VNA is also interested in the C919 aircraft line researched and produced by China. Mr. Le Hong Ha emphasized that this aircraft manufacturer rivals European aircraft manufacturers.

"VNA is interested in this aircraft line. The company has also set up a working project team and is closely following the process of applying for licenses on the standards of this aircraft line to meet the world's safety standards," Mr. Ha noted.

Major routes yet to recover as expected

According to Mr. Le Hong Ha, the international market is recovering quickly, accounting for about 6% of the airline's total revenue, but some major routes have not recovered as expected.

For example, the route to China, a large and important market for VNA and Vietnamese aviation, is recovering slower than forecasted. In the first five months of the year, the Chinese market decreased by about 55% compared to pre-Covid-19 levels. The airline is considering gradually reopening flights to China in the near future.

Regarding flights to Japan, the number of Japanese tourists to Vietnam has only reached 60% of 2019 levels. This market is crucial for Vietnamese tourism and VNA but is recovering slowly.

With the US route officially opened by VNA in 2022, Mr. Ha emphasized that this is "an important route in terms of politics and society, cherished and built after more than 20 years of evaluation." However, financially, the route to San Francisco (USA) has not yet covered its total costs.

"Long-haul flights remain a significant challenge for airlines due to intense competition. But the contribution of the US route to VNA is quite important, bringing good efficiency when other routes have not recovered," Mr. Ha stated.

N. Huyen