However, the rapid growth also brings about some problems including inadequacies in infrastructure, management, and administration capabilities.
That Bamboo Airways, a unit of resort developer FLC Group, has recently received a green light from Vietnam’s Ministry of Transport to increase its fleet to 30 aircraft by 2030 is making the competition among domestic carriers inevitably fiercer as the airlines vie for market share.
In 2018, the aviation market in Vietnam was dominated by two sides. Vietnam Airlines Group, which consists of Vietnam Airlines, Jetstar Pacific and Vasco, took the upper hand with total transport volumes reaching to 28 million passengers, taking a 56% market share, and the remaining belonged to Vietjet Air with 21 million passengers.
However, the “bipolar” situation may change with the advent of newcomer Bamboo Airways as the local aviation market is projected to grow 5% annually until 2030.
It is expected that over 117 million passengers will be carried in Vietnam by 2023 including around 85 million passengers flown by local carriers, which in turn require the domestic airlines to increase their fleets to 340 aircraft in total.
According to International Air Transport Association, Vietnam is one of the fastest growing aviation markets globally in the past decade with the average revenue growth of 17.4%, double the rate of 7.9% in Asia.
However, the rapid growth also brings about some problems including inadequacies in infrastructure, management, and administration capabilities.
In particular, human resources is the bottleneck of domestic airlines when the training is poor and does not keep pace with the existing development, leading to insufficient manpower, including pilots and other technical forces that embrace flight supervisors, air traffic managers, and aircraft engineers.
Additionally, the rate of delayed and cancelled flights has been reduced however could be increased in the upcoming time unless the state management agencies propose some proper solutions.
When it comes to the general issue of aviation security and safety, Prime Minister Nguyen Xuan Phuc assessed the country’s aviation industry has prospered recently with the debut of new airlines, responding to the requirement of traveling. However, there are still some problems that need to be solved including unfair competition between the airlines.
The PM also requested the carriers operate in accordance with the approved plans, the airport bases must run without congestion or overload.
A Bamboo aircraft
|
However, the “bipolar” situation may change with the advent of newcomer Bamboo Airways as the local aviation market is projected to grow 5% annually until 2030.
It is expected that over 117 million passengers will be carried in Vietnam by 2023 including around 85 million passengers flown by local carriers, which in turn require the domestic airlines to increase their fleets to 340 aircraft in total.
According to International Air Transport Association, Vietnam is one of the fastest growing aviation markets globally in the past decade with the average revenue growth of 17.4%, double the rate of 7.9% in Asia.
However, the rapid growth also brings about some problems including inadequacies in infrastructure, management, and administration capabilities.
In particular, human resources is the bottleneck of domestic airlines when the training is poor and does not keep pace with the existing development, leading to insufficient manpower, including pilots and other technical forces that embrace flight supervisors, air traffic managers, and aircraft engineers.
Additionally, the rate of delayed and cancelled flights has been reduced however could be increased in the upcoming time unless the state management agencies propose some proper solutions.
When it comes to the general issue of aviation security and safety, Prime Minister Nguyen Xuan Phuc assessed the country’s aviation industry has prospered recently with the debut of new airlines, responding to the requirement of traveling. However, there are still some problems that need to be solved including unfair competition between the airlines.
The PM also requested the carriers operate in accordance with the approved plans, the airport bases must run without congestion or overload.
Other News
- Hanoi prioritizes key industrial products
- AI set to drive Vietnam's economic growth in 2025
- AEON Vietnam opens another department store in Hanoi
- Support measures to strengthen Hanoi's small businesses and local industries
- European companies endorse Vietnam as investment destination
- Hanoi's flower market flourishes ahead of Tet 2025
- All-time high for Vietnamese FDI in 2024
- Mechanisms matter to promote energy efficiency in Vietnam's industrial sectors
- Hanoi targets to become nation’s logistics hub
- Vietnam's textile industry braces for tougher competition in 2025
Trending
-
Hanoi determined to enrich English learning for suburbs, rural students
-
Vietnam news in brief - January 12
-
Vietnam confident of achieving 8% growth rate in 2025
-
AI set to drive Vietnam's economic growth in 2025
-
Two Vietnamese cities in Asia's top five destinations for digital nomads
-
Prime Minister sets vision for Vietnamese football: Asian glory and World Cup dreams
-
Vietnam GDP expands by 7.09% in 2024
-
Hanoi celebrates New Year 2025 with art exhibitions
-
Hanoi Tourism: Paving the way for sustainable development