The Civil Aviation Authority of Vietnam (CAAV) has recently approved an air operator’s certificate (AOC) submitted by Vietstar Airlines, bringing the total number of licensed air operators in the country to seven.
The authority also confirmed that two more AOC applications submitted by Vinpearl Air and Vietravel Airlines were pending.
Competition in nation’s aviation industry set to intensify. (Photo: VNA).
Vinpearl Air said it would field a fleet of six aircraft in July next year and bring in 30 more by 2025 to fly domestic and international routes. Vietravel Airlines said it hoped to commence operations next October with three aircraft and planned to bring in five more by 2025.
Central Quang Nam Province’s department of planning and investment has also filed an application for its local airlines KiteAir, who said it would begin with six ATR72 aircraft during the first quarter of next year.
It has placed further strain on the overloaded and overcrowded major airports across the country such as Ho Chi Minh’s Tan Son Nhat International Airport, Ha Noi’s Noi Bai International Airport as well as those in the cities of Da Nang and Nha Trang.
The CAAC cited the Noi Bai-Tan Son Nhat route, operated by Vietnam Airlines, Jetstar Pacific and VietJet Air, which accounted for a whopping 22.7 percent of Viet Nam’s air ticket sales last year with flights connecting the country’s two major economic hubs reported over 90 percent of seat capacity filled.
Terminals and runways at the two airports, as a result, are forced to operate over capacity for a long time. To make matters worse, legal issues and complex aviation regulations slowed down the process to carry out much-needed repair and upgrade work. New players had to find bases elsewhere. Bamboo Airways was reported to set up base at Phu Cat Airport in central Quy Nhon Province, KiteAir at Chu Lai Airport in central Quang Nam Province and Vietravel Airlines at Phu Bai Airport in Hue.
While routes considered profitable by air operators were overexploited, airports in less-than-popular-destinations have seen little business with airlines claiming operations to and from such localities financially unsustainable.
Airlines also faced strict scrutiny in attempts to bring in additional aircraft to their fleets. CAAV reportedly turned down Bamboo Airways’ request to add 30 more aircraft in April citing an inadequate number of air traffic controllers to safely monitor flights. It also curbed Vinpearl Air’s plan to add 36 aircraft by 2025 to 30.
As market share is fiercely contested, air operators were forced to introduce new and better services to lure customers. Some have started to look for routes outside the country.
Cre: The Japan News
Nguyen Xuan Nghia – COMM
