ASEAN Open Sky puts pressure on Vietnam aviation sector
Air carriers in Vietnam are expected to face challenges in the air and on the ground when ASEAN implements open sky policies.
Jetstar Pacific’s general director Le Hong Ha said air-transport liberalization in ASEAN will allow the airlines of ASEAN-member countries to exploit traffic rights No 3, 4 and 5 among cities with international airports.
She said this would facilitate ASEAN passengers’ travel, thus enhancing tourism, foreign trade and cultural exchange among South East Asian cities.
However, Ha warned that the open sky would cause problems.
“Once air carriers want to increase their flight frequencies or many carriers want to provide flights on the same air routes, they will meet difficulties in registering their taking off/landing schedules at international airports due to the high flight density,” he said.
Duong Tri Thanh, deputy CEO of Vietnam Airlines, the nation’s flag air carrier, warned at a conference recently that a ‘traffic jam’ might occur if flight frequency increases and infrastructure is not developed accordingly.
If so, Thanh said, flight delays and cancellations could get even worse.
Vietnamese air carriers have been making hectic preparations for ASEAN’s open sky for the last two years.
Vietnam Airlines, for example, has upgraded its 3-star ground and air services into 4-star services in accordance with international standards.
The air carrier has announced a plan to modernize its fleet, under which extra wide body aircrafts will replace the old ones.
The fleet is expected to include 19 Boeing 787 Dreamliners and 14 Airbus A350-900XWBs, which it will receive from 2015 to early 2019.
The next-generation aircraft will allow passengers to use wi-fi service during the flights.
Vietnam Airlines hopes the service will differentiate Vietnam Airlines’ services from other airline services.
Vietjet Air, the private budget airline, has also announced it will increase investments to expand its fleet.
In 2014, the air carrier signed a contract with Airbus to buy and charter 100 aircrafts. More recently, it ordered six more A321s at the 2015 Paris Air Show.
The airline has taken an important move to prepare for the open sky contributing 49 percent of capital to Thai Vietjet Air, a joint venture between Vietjet Air and Thai Kan Air.
The joint venture has the right to provide both domestic and international flights from Suvarnabhumi Airport in Bangkok.
In the latest move, the carrier has opened a new air route that connects Bangkok and Can Tho City.
She said this would facilitate ASEAN passengers’ travel, thus enhancing tourism, foreign trade and cultural exchange among South East Asian cities.
However, Ha warned that the open sky would cause problems.
“Once air carriers want to increase their flight frequencies or many carriers want to provide flights on the same air routes, they will meet difficulties in registering their taking off/landing schedules at international airports due to the high flight density,” he said.
Duong Tri Thanh, deputy CEO of Vietnam Airlines, the nation’s flag air carrier, warned at a conference recently that a ‘traffic jam’ might occur if flight frequency increases and infrastructure is not developed accordingly.
If so, Thanh said, flight delays and cancellations could get even worse.
Vietnamese air carriers have been making hectic preparations for ASEAN’s open sky for the last two years.
Vietnam Airlines, for example, has upgraded its 3-star ground and air services into 4-star services in accordance with international standards.
The air carrier has announced a plan to modernize its fleet, under which extra wide body aircrafts will replace the old ones.
The fleet is expected to include 19 Boeing 787 Dreamliners and 14 Airbus A350-900XWBs, which it will receive from 2015 to early 2019.
The next-generation aircraft will allow passengers to use wi-fi service during the flights.
Vietnam Airlines hopes the service will differentiate Vietnam Airlines’ services from other airline services.
Vietjet Air, the private budget airline, has also announced it will increase investments to expand its fleet.
In 2014, the air carrier signed a contract with Airbus to buy and charter 100 aircrafts. More recently, it ordered six more A321s at the 2015 Paris Air Show.
The airline has taken an important move to prepare for the open sky contributing 49 percent of capital to Thai Vietjet Air, a joint venture between Vietjet Air and Thai Kan Air.
The joint venture has the right to provide both domestic and international flights from Suvarnabhumi Airport in Bangkok.
In the latest move, the carrier has opened a new air route that connects Bangkok and Can Tho City.