Hybrid – A New Aviation trends in 2019
28th August 2018 - 2:29
Vietnam’s Aviation Market
In 2017, the number of international tourist arrived to Vietnam reached over 12 million, as well as more than 7 million passengers from Vietnam abroad. From 2010 – 2017, the transportation market, especially in aviation in Vietnam had increased by 16.64% freight increased by 14%, and revenue reached $20 billion.
In the first 6 months of 2018, passenger carriage reached 24.6 million, increased by 15.2%. Cargo transportation met the number 176.4 tons, which increased by 14.8% compares to the same period of the previous year.
Apparently, Vietnam has 4 operating airlines which are Vietnam Airlines, Jetstar Pacific, VietJet Air, VASCO. There are about 20 large, and small airports which are operating in present, of which 2 airports are currently overloaded: Noi Bai International Airport and Tan Son Nhat Airport. These Airports always in excess 100% of capacity, it creates a heavy pressure to aviation sector. For that reason, it will take times for planning and executing in order to meet the capacity and unlock the potential of tourism in Vietnam.
Furthermore, in aviation sector, we are still in short of international and domestic flights directly to popular tourist destinations, the airfares are still quite high, therefore leads to higher cost for a tour packages and limiting the development of tourism in Vietnam
Over the year, it is easy to see Thailand surpassed Malaysia to be the number one tourism destination in South East Asia. In 2017, Thailand welcomed 34 million international visitors and 50 million domestic tourists, revenue reached $74 billion. Currently, Thailand has 10 international airports in the total of 30 operating airports, and there are 15 domestic airlines operating, compares to Vietnam with only 3 airlines, the number is too unbalanced to compared.
Competitive airfare, routes and frequency are diversified, many cities sponsored airfares for airlines in order to have cheap package tours, which in turn push the demand. These are the main reason, which recently help Thai’s Aviation grew rapidly.
Thai’s government ambition is to surpass Singapore to be the center of South East Asia in Aviation industry. On aviation’s infrastructure, Thailand is investing tens of billions of dollars in upgrading, expanding the current airports, as well as opening new airports.
Thailand is also having policy of open sky, enabling the Airlines Corporation to operate conveniently and easily.
Trending Aviation and Tourism Combination
Mr Nguyen Van Tuan, General Director of Vietnam National Administration of Tourism said that aviation and tourism are closely linked in the economic sectors, aviation are the “wings” for tourism to become a key economic sector of the nation.
About the Open Sky policy encourages the establishment of new domestic and international airlines, which will be the premise of promoting tourism as well as a stable development for Vietnam’s Aviation.
In general direction, until 2020, tourism will be the key economic sector of Vietnam, contributing 10% GDP, and total budget revenue of $35 billion
Accordingly, until 2020, Vietnam will have 23 airports operated, upgrade 21 existing airports, invest in construction of new International Airports such as Van Don, Phan Thiet, Long Thanh… Increasing the frequency of flights, encourage the development of aviation-related activities.
The decision of applying the Open Sky policy by the government has created an opportunity for investors like Bamboo Airways belonging to FLC Group, Vietstar Airlines, Skyviet…
Bamboo Airways- making people’s flying dream come true.
For new airline like Bamboo Airways, niche market, a potential market but still left open. Bamboo Airway aims to connect the regions, and bring Vietnam to go further. With Bamboo Airways, customers will have the opportunity to access affordable, and high quality service.
More people will have the opportunity to fly directly to the desired destinations, instead of transfer to another flight, which helps saving time and money.
In Vietnam, there are 60% of the population have the on-board experience, while this number in other countries in South East Asia reached 80%, therefore we have room to grow
An airline with a new development model, 5 stars’ service at a competitive price such as Bamboo Airways will be a new step in Vietnam’s Aviation industry. The “Hybrid” model is the factor which will make air transportation more competitive in the next few years. This means domestic airlines will have to constantly improve the quality and new services in order to receive good rating from customers.