Vietnam has been leading in Asia in the increase in air travelers
Vietnam has been leading Asia in the increase in air travelers in the last five years with the growth rate of 28.9%, twice as much as China, which ranks second.
Meanwhile, there are only four airlines operational in the large market, including the national flag carrier Vietnam Airlines, the two low-cost airlines Vietjet Air and Jetstar Pacific, and VASCO which mostly serves air routes from Ho Chi Minh City to southern provinces and islands.
Vietnam witnessed two-digit growth rates in both passenger and cargo transport in 2010-2017, by 16.64% and 14%, respectively. In the first half of the year, 24.6 million passengers were served, an increase of 15.2%, while 176,400 tons of cargo were transported.
In 2017, Tran Trong Kien, president of Thien Minh Group, stated the air joint venture carrier with AirAsia where he was appointed to the post of CEO, planned to take off early.
The joint venture had 70% of capital contributed by Vietnamese partners, including Thien Minh Group and some individuals and institutions, while the remaining 30% would be from AirAsia.
The carrier planned to focus on exploiting international air routes with fly time of less than four hours, using Airbus 320s and 321s.
Kien then affirmed the possibility of the takeoff plan on schedule as the partners in the joint venture had experience in following administrative procedures and preparing facilities for an air carrier.
However, there has been no further information about licensing and the commercial development plan of the airline.
As for Bamboo Airlines, after many delays, the VND700 billion carrier owned by FLC Group got an air transport service license from the Ministry of Transport on November 12, or one month later than the initially scheduled takeoff.
Trinh Van Quyet, president of FLC, on November 15 stated that the first commercial flights of Bamboo will be on December 29, while air tickets will be put on sale one month before the departure time.
The third carrier waiting for an operation license is Vietstar Airlines. Sources say the license will only be granted after Tan Son Nhat Airport is upgraded with a new terminal and parking lots, which would be at least three more years.