Enterprise

“CAAV: Keeping a Close Eye on Restructuring Airlines Bamboo Airways and Pacific Airlines”

On July 3, 2024, at a conference held by the Ministry of Transport to evaluate the first half of the year and deploy tasks for the next six months, Dinh Viet Thang, Director of the Vietnam Aviation Administration, reported that the total passenger market reached an estimated 38.1 million passengers in the first half of this year, a 6.7% increase compared to the same period in 2023.

Administrator

8 July, 2024

In the face of aircraft shortages, airlines have been working diligently to implement synchronized solutions to increase aircraft utilization and meet the travel demands of the population. In the first six months of the year, the total passenger market is estimated to have reached 38.1 million passengers, a 6.7% increase compared to the same period in 2023. Of these, international passengers exceeded 21 million, a rise of over 44% from the previous year, and a 3% increase compared to 2019; while domestic passengers reached 17 million, a decrease of over 19% from 2023.

The total cargo market is estimated at 599,000 tons, a 22% increase from the same period last year, with international cargo reaching 485,000 tons, an 18.9% increase, and domestic cargo at 114,000 tons, a 39% surge.

Aviation operations in the first half of the year have fundamentally met passenger demands, ensuring safety and security, and maintaining service quality.

As of the summer 2024 flight schedule, 63 foreign airlines and 4 Vietnamese airlines have fully restored their international flight networks to pre-COVID-19 levels and continue to expand into new markets in Central Asia, India, and Australia. Vietnamese carriers account for 44% of the international passenger market share, with an average seat utilization rate of over 77%.

Notably, the Chinese transportation market is gradually recovering, expected to reach 2.5 million passengers in the first six months (more than triple the same period in 2023 and 62% of 2019 levels), returning to the top 2 among the top 10 international markets in Q2 2024. Meanwhile, the South Korean market remains the most important, projected to reach 5.3 million passengers during this period.

Mr. Dinh Viet Thang, Director of the CAAV, reported at the conference of the Ministry of Transport on July 3rd, 2024

Addressing the challenges in meeting current travel demands, the Director attributed them to aircraft shortages, leading Vietnamese airlines to reduce supply on domestic routes. This is also the reason for the decline in the domestic market compared to 2023 and 2019.

Nonetheless, the airlines maintain a domestic flight network with 50 routes connecting Hanoi, Ho Chi Minh City, and 20 airports. Vietnam Airlines holds the largest market share at 42%, followed by Vietjet Air at 40%, with an average seat utilization rate of 84%.

At the conference, Mr. Dinh Viet Thang also stated that in the next phase, the CAAV will continue to direct airlines to implement solutions to strive for a supply source that is not lower than that of 2023, such as reducing turn-around time, optimizing aircraft utilization during the day, and increasing flights after 10 PM.

At the same time, they will coordinate with airlines and Vietnam’s diplomatic agencies abroad to understand and facilitate the conditions for airlines to open and strengthen direct flights between Vietnam and other countries/territories, especially the resumption of international flights to tourist destinations like Da Nang, Cam Ranh, Phu Quoc, and Dalat.

In addition, the CAAV will closely monitor and supervise the operations and aircraft fleets of airlines, especially those undergoing restructuring, such as Bamboo Airways and Pacific Airlines, to ensure safe and secure operations and protect the rights of passengers.

Hai Au