With over 6.9 million seats available, airlines in Vietnam are preparing to meet increased travel needs during the Tet holiday season.

Vietravel Airlines has appointed Dao Duc Vu as its new CEO, effective September 4, 2024. Vu, with over 35 years of experience, replaces Nguyen Minh Hai, who resigned for personal reasons.

Vietnamese airlines have been taking various measures in the face of a fleet contraction triggered by the manufacturer’s engine recall, including adding and replacing aircraft.

Travelers can now enjoy lower airfares thanks to airlines enhancing their fleets and increasing the number of flights

Last year, the ratio of operating aircraft among those with AOC reached 94.4%. However, this rate drops to 85.6% this year due to the recall of engines.

Bamboo Airways is seeking additional capital of around 1.69 trillion VND (66.8 million USD) in the final months of 2024 to ensure its operational requirements, while also announcing the clearance of aircraft leasing debts.

The VN Civil Aviation Authority has issued a directive urging airlines to actively search for and add more aircraft to replace those suspended due to engine recalls, and to increase capacity on key tourist routes, including those to and from Can Tho.

Pacific Airlines is set to take off again on domestic routes starting June 26, after more than three months without operational aircraft.

There is no legal basis at the moment to consider proposals related to raising the foreign ownership ratio in aviation transport businesses to 49% of the charter capital, said the government agency.

The Ministry of Transport has asked carriers to develop aircraft fleet operation plans to meet the rising travel demand for the upcoming national holidays and summer peak.

The fleets of some Vietnamese airlines are likely to shrink in 2024 and 2025, thus subsequently affecting their transportation capacity on domestic and international routes, said the Civil Aviation Authority of Vietnam (CAAV).

Air carriers said they are prepared for busy end-of-year holiday travel as the 2024 Lunar New Year (Tết) approaches.

Deputy Prime Minister Le Minh Khai has requested six ministries and agencies to act within their jurisdiction to urgently handle proposals by Bamboo Airways to help save the air carrier.

The Government Office announced the conclusion of Lê Minh Khái, Deputy Prime Minister, at the meeting on handling petitions from Bamboo Airways.

The Ministry of Transport has issued a circular which will increase ceiling airfares for domestic routes from March 1, 2024, after the peak travel time of Lunar New Year holidays.

Vietnamese airlines have enjoyed better business results on the back of the tourism sector’s strong recovery. However, high oil prices and fierce competition from foreign competitors are among the grave concerns for domestic carriers.

Domestic airlines in Vietnam have experienced a decline in the on-time performance (OTP) during the first 10 months of this year, with only two airlines maintaining OTP rates above 90%, compared to four airlines in the previous year.

The slow recovery of the global aviation market and sliding regional demand for air travel could prolong the path to recovery for local airlines.

Slower recovery in international markets and lower demand in domestic air travel have been hindering the recovery of Vietnam's airline industry, said industry insiders and policymakers.