Many opportunities available for Vietnam domestic airlines

While many thought that the domestic air transport market belongs to the market giant – Vietnam Airlines (VNA), however Jetstar Pacific (JPA) entered the market quietly and now has become profitable. This means other airlines also have opportunities to compete.

On the domestic aviation market of Vietnam, apart from the major brands which are VNA and JPA, people also talk about other airlines such as Vasco, Viet Air, Air Mekong, Blue Sky Air, etc. Indochina Airlines and Vietjet Air are almost history since the aircrafts had missed too many scheduled flights.

Nevertheless, there are in fact only VNA and JPA exploiting the market, thus, many domestic flights are in overload.

Recently Danang People’s Committee has issued an official document to propose VNA increase the frequency of the Danang-Da Lat route, in order to satisfy the overloaded needs of passengers. However, deputy general director of VNA Trinh Hong Quang said VNA currently does not have enough airplanes to meet such requirements.

Through successfully bringing four Bombardier CRJ900 aircrafts (90 seats) into the domestic, and completely recruiting pilots and steward team, Air Mekong is most likely to launch its first commercial flight on October 10, 2010. Its air routes will be Hanoi-Da Nang, Hochiminh city, Nha Trang, and Da Lat; Hanoi- Phu Quoc; Hochiminh city-Phu Quoc; Hochiminh city-Con Dao, Ban Me Thuot, Hai Phong, and Vinh, etc.

Air Mekong’s representative said that the airline is waiting for the approval of Civil Aviation Administration of Vietnam (CAAV) on the air operator’s certificate (AOC). After that, it will announce its commercial services.

In 2009, the total number of passengers passing Vietnam airports increased by four times compared to 2000. In July 2010, the number of passengers travelling by air rose up by 33 percent compared to the same period of 2009. Those figures show that Vietnam’s aviation market has been growing and competing very strongly.

Recently, CAAV has granted permission to Blue Sky Air to exploit services using helicopters, hovercrafts, and all other airplanes.

When participating in the domestic air market, Blue Sky Air has demonstrated its advantages with the ideas of offering flying tourism services, which serve business-class passengers.

Travelling with mobility, safety and time saving are the demands of many customers. With about 20 tourist destinations registered, and the ability to takeoff and landing in various topographic and tourist destinations, in the near future, Blue Sky Air will be able to satisfy the diversified needs of the society.

Talking to reporter of Dan Tri on the competition of the airlines in the domestic market, deputy director of CAAV Lai Xuan Thanh said beginning with the policies and legal regulations on the establishment of new airlines, the competition on the domestic market of Vietnam is an inevitable trend.

The participations of the two new airlines including Air Mekong and Blue Sky Air are rather sure. It is sure because from the very beginning of their establishment, those airlines have been invested carefully in terms of human resources and facilities, which are critical for their long-term presences in the market.

According to many experts, after a short time, when the airlines focus on exploiting commercial routes, the competition would become increasingly fierce.

Vietnam’s market is showing very positive signs for competition. With examples from JPA, other airlines are also having opportunities to compete fairly. The current competition among the airlines is becoming very ebullient and passengers are always the beneficiaries, said Thanh. – Dantri

Tags: Vietnam aviation, Vietnam aviation industry, Vietnam aviation market