Vietnam’s aviation industry to take flight

A growing economy is great news for both domestic airlines and international carriers that include Vietnam on their route maps.

The signs are already good with the country’s aviation industry sharply rebounding in 2010.

Cargo shipments were up 37 per cent rise and passenger numbers up 20 per cent, according to Vo Huy Cuong, director of the Air Transport Department at Civil Aviation Administration of Vietnam (CAAV). This compares with 2009 gains of 2 per cent for cargo and 8.4 per cent for passengers. In total, 460,000 tonnes of cargo and 21 million passengers passed through the country’s airports last year.

This strong revival was based on the recovery of Vietnam’s economy, said Cuong.

“There is a high positive correlation between air travel and economic growth as this relates to consumer spending and hence positively impacts on the demand for air services,” he said.

Tourism is also giving the aviation market a boost. Last year, Vietnam received more than five million foreign visitors, with 80 per cent arriving by air, according to Vietnam Tourism Administration.

The business operations report of the nation’s largest carrier Vietnam Airlines also provides clear evidence of the return to form of the aviation market. Vietnam Airlines reported it had transported 12.3 million passengers and 166,300 tonnes of cargo in 2010, up 33.7 per cent and 43.9 per cent respectively against 2009.

During a visit to Vietnam in mid-January, Giovanni Bisignani, general director and chief executive officer at International Aviation Transport Association, said Vietnam was one of the most promising markets in the world.

“The future for Vietnamese aviation is bright.  By 2014, Vietnam is projected to be the world’s 3rd fastest growing market for international passengers and freight, and the 2nd fastest for domestic passengers,” said Bisignani.

This growing demand for air services means fantastic opportunities for domestic and foreign airlines. While local players like Vietnam Airlines and JetStar Pacific Airlines are expanding their route maps, many foreign players are also opening up new routes or adding flights to the country.

Qatar Airways last November added flights to Ho Chi Minh City and launched new flights to Hanoi. Akbar Al Baker, chief executive officer of Qatar Airways, said Vietnam would be a large and powerful aviation market in the future.

Other airlines such as LOT Polish Airlines, Turkish Airlines and China Eastern Airlines launched routes to Vietnam last year to satisfy the rising demand for air services to this country.

Cuong said the CAAV was currently handling the applications of several foreign airlines who want to open routes to Vietnam.

“The rapid expansion of Vietnam’s aviation market is luring many foreign airlines,” he added.