Aviation market slows down

16-Jul-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

The Vietnamese aviation market, despite continuing its upward spiral at a growth rate of 9.4 percent in the first six months of 2019, has shown signs of slowing down compared with the year-on-year growth pace.

Statistics from the Air Transport Department of the Civil Aviation Authority of Vietnam show that the local air transport market grew by 15.2 percent in the first half of 2018, much higher than in the six-month period this year.

The slowdown had earlier been predicted by experts as the local airlines, such as Vietnam Airlines, Jetstar Pacific and Vietjet, have constantly expanded their aircraft fleets and opened more air routes.

On domestic air routes linking major cities such as Hanoi, HCM City and Danang, flights are arranged to cover all time slots each day. Vietnam Airlines and Jetstar Pacific operate flights with 30-minute intervals on the Hanoi-HCM City air routes.

The domestic aviation market currently has five carriers: Vietnam Airlines, Jetstar Pacific, Vietjet Air, Vietnam Air Services Company or Vasco (a subsidiary of Vietnam Airlines) and Bamboo Airways.

In spite of its recent entry into the aviation market, Bamboo Airways holds 4.2 percent market share and is planning to expand its aircraft fleet.

Besides this, major local conglomerate Vingroup has established its own air carrier, called Vinpearl Air, and is registering for a business license. In addition, procedures to establish Vietravel Airlines, Vietstar Airlines and Thien Minh are being completed.

Some newcomers to the domestic aviation market are expected to stoke the competition of the market and provide customers with more choices.

Currently, Vietnam’s carriers are operating a combined 48 domestic air routes linked to 22 airports. Vietnam Airlines operates 33 domestic and international air routes, while Vietjet has 35 air routes connecting major cities in Vietnam and international destinations, Jetstar Pacific offers 23 domestic and international air routes and Bamboo Airways and Vasco fly on 24 and nine domestic and international air routes, respectively.

The number of passengers transported by the airlines in the first six months of 2019 totalled 18.3 million, up 6.2 percent year-on-year.

Apart from this, the number of aircraft is rising strongly. As of June 31, the airlines operated 197 planes, up 30 aircraft year-on-year, according to statistics.

Under the plan to develop air transportation until 2020 with a vision toward 2030, approved by the prime minister, the aviation market is targeted to grow 16 percent per year on average in the 2015-2020 period and an average of 8 percent in the 2020-2030 period.

https://english.thesaigontimes.vn/69728/aviation-market-slows-down.html

 


Category: Business, Vietnam

Print This Post