~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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Vietnam's Aviation Sector Plans Major Expansion

HANOI - To meet the increasing demand for air transport, Viet Nam's civil aviation sector is planning a number of large scale projects over the next five years as the national flag carrier over the next five years continues to expand its fleet.

At present, Vietnam Airlines' fleet of 19 aircraft consists of Airbus A320s, Boeing B767s, ATR72s and Fokker-70s. This year, the airline will add at least two more aircraft to this fleet and over the next five years it will buy or lease another ten planes, including long-haul aircraft which can accommodate 250 to 300 passengers each. The airline also plans to increase its share in the ownership of the fleet through purchase or finance leasing contracts, said Nguyen Tien Sam, director general of the Civil Aviation Authority of Viet Nam (CAAV). Increasing its ownership in the fleet will help the airline reduce operation costs, thereby increasing its competitiveness.

Other airlines and aviation companies, including Pacific Airlines, Vasco and SFC, are also planning to expand their fleets. Pacific Airlines currently operates Hanoi-HCM City services and other international services. CAAV is to develop airports across the country and upgrade airport facilities over the next five years. It has already submitted a master plan to develop Viet Nam's airports to the Government for approval. This includes co

The completion of the construction of T1 Terminal at the Ha Noi-based Noi Bai Airport in early 2001 and the addition of another runway will bring the airport up to international standard. The runways at Tan Son Nhat Airport will be upgraded while another terminal will be built at this international airport, raising the capacity of the airport to eight million passengers per year. Meanwhile, the Central Airport Authority has been conducting a feasibility study for the project to build a new terminal for the Da Nang Airport.

In addition, plans for new international airports to be built in the period 2000-2005 have been mapped out. Sam said three more international airports will be built. Two of these, Cat Bi Airport in the north and Long Thanh in the south, will be built to support Noi Bai and Tan Son Nhat airports which are expected to become regional transit hubs in the near future. The third one will be built in Quang Nam Province's Chu Lai in central Viet Nam. Other domestic airports will be expanded and upgraded to match the standards set by the International Civil Aviation Organisation (ICAO). Lighting systems will be installed at these airports, raising their operating time and thereby making them better able to meet the growing demand for flights between provinces.

According to Sam the efforts made by Vietnamese and American negotiators resulted in the signing of records on the meeting on aviation co-operation between Vietnamese and American airlines on March 3 of this year. These records allow Vietnamese and American airlines to co-operate with each other or co-operate with airlines from a third country for flights linking Viet Nam and the US. Following these initial achievements, Vietnamese and American authorities are scheduled to meet for negotiations on an aviation agreement between the two countries in Washington D.C. in mid-June. To reach an agreement beneficial to both sides, however, Viet Nam and the US will have to make efforts to bridge the gaps caused by disparities in the levels of development of the two countries' aviation sectors, said Sam.

"The launch of direct services linking Viet Nam and the US through a bilateral aviation agreement will contribute significantly to the full normalisation of trade between the two countries," Sam said. "I believe that together with the achievements during the initial rounds of negotiations, an aviation agreement between the two countries can be reached in the near future."

CAAV recognised the years between 2000-2005 as the period for recovery of Viet Nam's aviation sector after great impacts caused by the regional economic crisis. Sam added that since 1999, there have been signs of recovery for Viet Nam's aviation market and that passenger figures in the first quarter of this year increased sharply.

Vietnam News Agency - April 25, 2000.