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Home  >>  Daily News  >>  Vietnam News  >>  Aviation  >>  Vietnam aviation market poised to take off
NEWS UPDATES 16 March 2010

Vietnam aviation market poised to take off

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Many airlines expecting post crisis gains had recently been licensed for expansion in Vietnam, Vo Huy Cuong, head of the Civil Aviation Administration of Vietnam’s Air Transport Department, was quoted as saying by online news website Vietnam NetBridge.

“Airlines expect the market to recover in both passenger and cargo services with support from the economic growth predicted around the globe,” said Cuong.

Cuong said the market was estimated to grow 10 to 15 percent, double national economic growth estimates of 6.5 percent this year. It grew 8.4 percent last year, he said.

Viva Macau Airlines was the first carrier to expand its services in Vietnam this year as it opened a direct route to Hanoi during the Tet Lunar New year Holiday. The three weekly flights were in addition to its first route to HCMC opened two years ago.

JetstarAirAsia, the world’s first low-cost carrier alliance, said it would nearly double its flights between Singapore and Ho Chi Minh City from May to July, according to local media.

Vietnam Airlines has also opened its two latest routes linking Hanoi with Osaka, Japan and Rangoon, Myanmar. The national flag carrier will start direct flights from Hanoi and HCMC to Shanghai, China later this month. Pham Ngoc Minh, Vietnam Airlines’ director general, said the nation’s largest carrier planned this year to add 16 new aircrafts to its current fleet of 58 jets and join Skyteam, the world’s biggest carrier alliance.

Vietnam Airlines aims to serve 11 million passengers this year to earn 32 trillion dong ($1.68 billion), in revenues, a rise of 18 and 30 percent respectively.

Do Anh Tuan, managing director of Trai Thien Air Cargo, said sales on Vietnam’s airline market would rise on huge demand from local passengers and businesses as other means of inland and waterway transportation were still underdeveloped in Vietnam.

There would be more competition between passenger and cargo carriers along main routes to attract customers and prices would be fairer, said Tuan whose optimistic prediction was that the market would grow 20 to 25 percent this year.

Trai Thien, Vietnam’s first private cargo carrier licensed in late 2008, plans to commence its first flight between Hanoi and HCMC in May. The company is targeting garments, electronics and foodstuffs companies as potential customers.

Also in May, Hong Kong Airlines and Malaysia-based Neptune Air are also scheduled to increase their passenger and cargo flights to HCMC and Hanoi, according to Civil Aviation Administration of Vietnam (CAAV).

CAAV said Cargolux wanted to expand to Hanoi after the cargo carrier started its first route to HCMC from Luxembourg. The airline flies garments, footwear, handicraft and electronics to Europe. It also carries seafood products, fruit and vegetables to Asian destinations.

Vu Duc Bien, business and commerce manager at Vietnam Air Services Company, or Vasco, said demand from businesses would grow as they scout for international opportunities in the coming years. He said economic recovery would no doubt boost this demand.

Bien predicted that the market for charter flights for geographic and oil surveyors and researchers would also develop, saying that such services would increase by 30 percent this year compared to zero growth last year due to the crisis. Vasco, a unit of Vietnam Airlines, operates in passenger short-haul flights and services for businesses.

 

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