Vietnam’s airlines to buy more aircraft to expand fleets
The airlines are focusing on developing fleets with narrow-body aircraft to increase efficiency in the context of fierce competition.
The aviation growth rate is expected to be 5.3 percent per annum on average, instead of the high growth rates of 16-23 percent seen in 2013-2016.
In this period, the national flag air carrier plans to buy 50 narrow body aircraft (A320/321 or B 737 Max (8/9/10) to expand the fleet. Once fulfilling the purchase plan, the airline would have 135 airplanes by 2025. The investment capital of the project is VND88.131 trillion.
Of the 135 aircraft Vietnam Airlines plans to have in the next five years, there would be 90 narrow body. The project on purchasing narrow body aircraft has been a part of Vietnam Airlines’ development plan for a long time which is in line with the policy on aircraft development approved by the Civil Aviation Authority of Vietnam (CAAV).
Vietnam Airlines has completed a study to assess the efficiency of regional jets which would be used to replace ATRs for some short-distance flights, in the context of small market capacity and domestic airports.
|Vietnam Airlines has completed a study to assess the efficiency of regional jets which would be used to replace ATRs for some short-distance flights, in the context of small market capacity and domestic airports.|
It is expected that the airline will have 6-20 aircraft of this kind.
It also plans to have 34 wide-body aircrafts under the hire-purchase mode. The airline will make decisions depending on the market situation.
To date, Vietnam Airlines has a fleet of 100 aircraft, including 28 wide-body (14 Airbus 350-900s, 11 Boeing 787-900s and 3 787-100s).
The growth of the Vietnam’s aviation market has slowed down since 2017, while the growth rate was one digit in the first half of the year. Meanwhile, the competition in the domestic and international markets is getting fierce, which has led to airfares dropping.
At present, 72 international airlines and four Vietnam’s airlines, not including Vinpearl Air and Vietravel Airlines which are about to join the market next year, are exploiting 200 international air routes and providing chartered flights from 25 countries and territories to airports in Vietnam.
Vietnam’s airlines also have 155 regular routes and other charter points.
With the high number of air routes and fierce competition, Vietnam Airlines and other carriers such as Vietjet are considering developing fleets of narrow body aircraft to increase operation efficiency.
The new-generation wide body aircraft save fuel, but the efficiency is not high because of the stiff competition.
Vietnam Airlines plans to lease 4 wide-body aircraft. Vietjet doesn’t have a plan to buy wide-body aircraft, but has only signed contracts on buying 20 narrow-body aircraft A321 CEO and NEO, worth $2.29 billion.
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