Analysts have said that Vietnam’s aviation industry has made especially big improvements in the last three years with domestic air carriers spending tens of billions of dollars to buy new aircraft to expand their fleets.
According to the head of the Civil Aviation Authority of Vietnam (CAAV) Lai Xuan Thanh, Vietnam in the first six months of the year was put into the top three in the region and top seven in the world in terms of air transport growth, listed as one of the world’s fastest growing markets.
The total number of passengers going through the airports in Vietnam in the first half of the year reached 38 million and the growth rate of the air transport market reached record high of 30%. The attractive market was why air carriers like Emirates, Turkish Airlines and Air France opened new air routes to Vietnam
Three domestic and 55 foreign air carriers now operate 99 international air routes to Vietnam. Regarding market share, Thanh said foreign airlines hold 57.6% and domestic airlines 43.3%.
Vietnam Airlines, the nation’s flag air carrier, decided to replace all large-body aircraft with next-generation aircraft Boeing 787-9 and Airbus 350-900 XWB.
It has been recognized as a 4-star airline. This is the first time a Vietnamese airline has received the recognition. Duong Tri Thanh, Vietnam Airlines’ CEO, said the air carrier strives for 5-star standard and it is making hectic preparations to open air routes to North America, slated for 2018.
Meanwhile, Vietjet (VJ), the privately run air carrier, has had a series of huge aircraft purchase deals since 2013.
Most recently, VJ signed a contract to buy 20 A321s on the occasion of French President Francois Hollande’s visit to Vietnam, worth US$2.39 billion.
Prior to that, VJ signed a contract with Airbus on chartering and buying 100 A320s worth US$9.1 billion in 2013, and signed a contract with Boeing on buying 100 B737 MAX200 worth US$11.3 billion.
With the huge deals, VJ is believed to be one of the fastest growing air carriers in the region with a fleet of 220 aircraft it plans to receive from now to 2023.
The air carrier has also made many business deals with foreign airlines to exploit regional and international markets.
On September 7, Thai Vietjet, a joint venture of Vietjet, opened six air routes in Thailand.