Newcomer Bamboo Airway’s expansion stirs up Vietnam’s aviation market
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.
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.
17:35, 2024/11/23
Hanoi gears up for Tet: ensuring a steady supply of safe food
The city will work closely with other cities and provinces to ensure that consumers in the capital have access to safe food and agricultural products.
14:47, 2024/11/15
Year-end hiring spree as Hanoi companies ramp up recruiting
In the fourth quarter, many major holidays will lead to increased hiring as companies finalize orders and anticipate new projects.
13:33, 2024/11/14
Vietnam's digital economy expected to grow big in 2024
E-commerce is expected to reach US$22 billion in 2024, leading the growth of Vietnam's digital economy.
22:03, 2024/11/13
Incheon-Hanoi conference marks milestone in tourism development cooperation
Hanoi and South Korea's Incheon aim to increase their visibility among Vietnamese and international travelers through a series of events to promote MICE (Meetings, Incentives, Conferences and Exhibitions) tourism and medical tourism to Vietnam.
14:21, 2024/11/12
Hanoi's businesses place focus on digital transformation
Businesses need to utilize digital technologies to streamline operations, increase efficiency, and provide greater value to customers.
03:04, 2024/11/08
Semiconductor market reaches $18.2 billion: SEMIEXPO Vietnam 2024
Vietnam a key player in tackling the challenges facing the global semiconductor supply chain.
- Hanoi DigiTech 2024 connects businesses through digital products
- Hanoi steps up investment promotion
- Hiring multitaskers: Priority for Hanoi companies
- Hanoi seeks partnerships to build skilled workforce for digital transformation
- Hanoi to host Vietnam-Asia Smart City Summit 2024
- Vietnamese spend $8.9 billion on ecommerce