Airlines say market will even grow stronger next year
HO CHI MINH CITY - Thai Airways has just announced it will add one flight to the HCMC-Bangkok schedule in the summertime next year from the 16 current weekly flights between the two cities. General manager Nond Kalinta says the move is to meet the rising air travel demand on the route and to further tap what Vietnam’s burgeoning aviation market offers.
Kalinta is confident that the aviation market would continue sharper growth next year than this despite stiffer competition prompted by the coming of new airlines and the flight increase by the airlines active in Vietnam if the market continues this trend.
A bustling year
In 2006, the market has been bolstered by existing airlines expanding their services and launching new flights coupled with their promotions for airfare and tour packages.
For instance, Malaysia Airlines has added two flights to its Hanoi-Kuala Lumpur service, raising the weekly number to nine on the route and 23 between Vietnam and Malaysia. Vietnam Airlines launched direct flights between Luang Prabang and Hanoi in late October as part of the national flag carrier’s plan to expand its presence in the sub-region of Cambodia, Laos, Myanmar and Vietnam.
Several new players have arrived this year including Royal Brunei Airlines, and the launch of Air China and Shenzhen Airlines flights between Vietnam and China.
Airlines clarified their extra and new flights departing Vietnam were to meet the real demand of more leisure and business travelers and capitalize on air travel expected to soar after Vietnam’s admission into the global trade club WTO.
Vietnam Airlines has announced its revenues this year are estimated to exceed US$1 billion for the first time, up from US$922 million last year. The airline expects its number of passengers would grow 12% to seven million this year from more than six million last year.
Vietnam Airlines spokesman Nguyen Tan Chan confirmed with the Daily last week that the carrier accounted for some 43% of the total number of passengers departing Vietnam and would maintain the proportion.
Local aviation officials say the aviation market has developed very fast in the past five years and achieved an average annual growth rate of 15% during the period. Meanwhile, the International Air Transport Association forecasts the aviation traffic market in Vietnam will grow by around 10% in the coming years.
A promising future
Kalinta of Thai Airways says more business people will come to Vietnam to make full use of the country’s high economic growth, political stability and safety while many more international tourists want to see Ha Long Bay, the ancient town of Hoi An and other places of historical, cultural and natural values. He says the factors together with more high-income earners in Vietnam will give a boost to the aviation industry in the country.
Joe Mannix, country manager of United Airlines Vietnam, further explains many more Vietnamese are now traveling, and that the explosive growth in traffic is two-way, with many more foreign visitors also arriving as the country becomes an ever more attractive destination for tourists and business people seeking opportunities.
Mannix is upbeat about the aviation traffic market, saying that Vietnam’s WTO membership will offer airlines more opportunities than challenges.
In the time of burgeoning market in Vietnam, Mannix says, there are good signs for United Airlines to become strong in Vietnam, and “2007 will be a very successful year for us.”
Malaysian Airlines envisaged average annual growth of more than 20% in passenger traffic for the foreseeable future when realizing the huge future potential of the market.
Low cost carriers will take off
The low-cost aviation market is poised to take off in Vietnam hopefully from next year given the arrival of new players and a huge demand for this low-priced service.
Australia’s Jetstar Airways arrived in late November to operate flights linking Sydney to HCMC. The planes of Viva Macau are expected to land next year while Air Asia is seeking to operate flights from Kuala Lumpur of Malaysia and Bangkok of Thailand to more destinations in Vietnam as the low-cost carrier is cashing in on its current flights between the two cities and Hanoi.
On the home front, Pacific Airlines is hurriedly launching domestic budget flights in February. Pacific managing director Luong Hoai Nam says that low-cost aviation service is “an indispensable trend” nowadays and that is why the airline will become a budget carrier early next year to cater to different budgets.
Nam is optimistic about the low-cost service in Vietnam when saying the number of passengers flying with low-cost carriers has jumped from 10 million to 30 million in Indonesia in the past five years. The annual number is 50 million in Australia.
Tiger Airways in Vietnam reports the average seat capacity is 80% full for the flights between Vietnam and Singapore launched in April 2004.
By Minh Nguyen - The Saigon Times Daily - December 29, 2006.
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