In the context of aircraft fleet shortage, airlines have made efforts to implement synchronous solutions to increase aircraft utilization while still ensuring flight safety, meeting people's travel needs in recent times.
However, according to forecasts of According to the Civil Aviation Authority of Vietnam, the shortage of aircraft fleet due to engine recalls by manufacturers is likely to last until the middle of next year, requiring management agencies as well as airlines to "stretch themselves" to meet market demand.
International visitors increase, domestic visitors decrease
At the conference to evaluate the results of the first 6 months of 2024 of the Ministry of Transport on the morning of July 3, Director of the Civil Aviation Authority of Vietnam Dinh Viet Thang said that in the first 6 months of this year, the total passenger market of Vietnam is estimated to reach 38.1 million passengers, an increase of 6.7% over the same period in 2023. Of which, international visitors reached 21.1 million passengers, an increase of 44.3% over the same period in 2022 and an increase of 3% over the same period in 2019; domestic visitors reached 17 million passengers, a decrease of 19.4% over the same period in 2023.
As of the 2024 summer flight schedule, 63 foreign airlines and 4 Vietnamese airlines have fully restored their international flight network to the pre-Covid-19 period and continue to expand to new markets in Central Asia, India, and Australia.
“The international aviation market has fully recovered and has seen slight growth (up 3%) compared to the same period in 2019 - the year before the Covid-19 pandemic. Vietnamese airlines account for 44% of the international passenger market share with an average seat utilization rate of over 77%,” Director Dinh Viet Thang stated.
In particular, the Chinese market is gradually recovering, expected to reach 2.5 million visitors in the first 6 months of the year (an increase of more than 3 times compared to the same period in 2023 and equal to 62% compared to the same period in 2019) and return to the 2nd position among the 10 largest international markets in the second quarter of 2024, while the Korean market remains the most important market, expected to reach 5.3 million visitors in the past 6 months.
Mr. Thang also pointed out that due to the shortage of aircraft fleet, Vietnamese airlines had to adjust and reduce supply on domestic routes, which was the reason why the domestic market decreased compared to the same period in 2023 and 2019.
However, airlines still maintain a domestic flight network with 50 routes connecting Hanoi, Ho Chi Minh City and 20 airports. Vietnam Airlines is the airline with the largest market share with 42%, followed by Vietjet with 40%, with an average seat utilization rate of 84%.
“Air transport activities in the first 6 months of the year basically met the needs of passengers with aviation safety and security guaranteed and service quality maintained and improved during the peak period of the recent holidays and Tet,” the head of the Civil Aviation Authority of Vietnam assessed.
The good news in the first 6 months of the year is that despite the lack of aircraft due to objective reasons, with many solutions, airlines still ensure transport capacity to serve people on routes with shorter stopover times, increased night flights, etc., reducing costs but still improving operational efficiency. This is the effort of the whole system."
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The Civil Aviation Authority of Vietnam also set a target for the 2024 air transport market to reach approximately 78.3 million passengers (34.8 million domestic passengers and 43.5 million international passengers) and 1.21 million tons of cargo, an increase of 7.7% in passengers and 13.4% in cargo compared to 2023.
Minister of Transport Nguyen Van Thang assessed that the good news in the first 6 months of the year is that although lack of aircraft Due to objective reasons, with many solutions, airlines still ensure transport capacity to serve people on routes with shorter stopover times, increased night flights, etc., reducing costs but still improving operational efficiency. This is the effort of the whole system.
Increase mining productivity while ensuring safety
Mr. Le Hong Ha, General Director of Vietnam Airlines, said that the airline is having to temporarily ground 12 A321NEO aircraft due to the impact of the engine recall by manufacturer Pratt & Whitney and 2 A350 aircraft also affected by Rolls-Royce engines.
“The process of putting the engine into maintenance lasts up to 300 days, nearly three times longer than before. Therefore, the shortage of aircraft will continue until the first half of 2025. According to Vietnam Airlines, by the end of this year, in addition to 17 A321neo aircraft, 3-5 A350 aircraft will also be affected by the manufacturer's engine recall. The airline is continuing to work with the manufacturer to find a solution,” added Vietnam Airlines General Director Le Hong Ha.
In the context of a 15% decrease in aircraft resources, which has affected Vietnam Airlines' operating capacity, however, according to Mr. Ha, the airline has implemented solutions to adjust production and business activities, change flight routes, operating conditions, and aircraft turnaround times at airports, thereby increasing aircraft utilization by 26% compared to 2023 while the total flight hours in the first 6 months of the year are similar to the same period in 2019 but still ensuring flight safety.
In the first six months of the year, the number of flights of Vietnam Airlines increased by nearly 9% over the same period, operating hours increased by more than 11%, the number of passengers transported on the entire network increased by 10% over the same period. Air transport revenue reached 40 trillion VND, up more than 24% over the same period, moving towards balancing revenue and expenditure, and making a profit.
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In addition, Vietnam Airlines has proactively sought solutions to wet lease 4 aircraft for peak service, meeting the supply load for the domestic market, operating night flights to have the opportunity to reduce ticket prices for people; continuing to expand the international flight network.
Vietnam Airlines also proposed that the Ministry of Transport continue to support airlines in working with aviation authorities of countries to ensure that slots (take-off and landing) are maintained for airlines in the context of the international air transport market recovering.
In the next phase, the Civil Aviation Authority of Vietnam will continue to direct functional units to continue effectively implementing solutions to meet market demand; direct airlines to implement solutions to strive for a supply not lower than in 2023, such as: reducing turnaround time, optimizing aircraft operating time during the day, and increasing flights after 22:00.
The Civil Aviation Authority of Vietnam also coordinates with airlines and Vietnamese diplomatic agencies abroad to grasp the needs to support and facilitate airlines to open new routes, increase direct flights between Vietnam and other countries/territories, especially the resumption of international flights to tourist destinations such as Da Nang, Cam Ranh, Phu Quoc, and Da Lat.
This agency will also closely monitor and supervise the operations and fleets of airlines, especially those undergoing restructuring such as Bamboo Airways and Pacific Airlines, to ensure safe operations, security, and passenger benefits.
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