Airlines look to capitalise on thriving demand

Saturday, May 06, 2023 07:30

Vietravel Airlines and Vietjet Air are both ramping up their expansion efforts. — VNA/VNS Photo

Vietravel Airlines and Vietjet Air are both ramping up their expansion efforts in response to the opportunities arising from the recovering aviation industry.

Vietravel Airlines plans to boost its fleet to six aircraft by adding three more in the third quarter of 2023, in line with its original establishment plan.

The new carrier, which launched in 2020, presently operates six domestic routes connecting Ha Noi, HCM City, and major tourist destinations like Da Nang, Phu Quoc and Quy Nhon, as well as two international routes.

As of Q1 2023, Vietravel Airlines has conducted over 11,600 flights safely, carrying 2.5 million passengers with an average occupancy rate of 93.7 per cent. The airline has allocated resources for extending its international reach in its third year and aims to augment its charter capital nearly sixfold to VND7.64 trillion (US$323.7 million) by 2025.

Likewise, Vietjet Air is also making moves to capitalise on the robust recovery of the aviation sector. The carrier's shareholders approved a plan to expand its fleet to 87 aircraft in 2023, up by 12 from the previous year. The leading low-cost provider is eyeing wide-body A330 aircraft to enhance the international market and its main route between Ha Noi and HCM City.

With this expanded fleet, the first privately-owned airline in Viet Nam aims to operate 139,513 flights, serving 25.7 million passengers. The airline also anticipates increasing the number of cargo routes, targeting over 160,000 tonnes of cargo.

In 2023, Vietjet Air will focus on pioneering potential routes besides stabilising its domestic routes.

Last week, General Director Dinh Viet Phuong announced that Vietjet Air had received three new A321 ACFs from Hamburg, Germany, to serve the peak holiday season from April 30 to May 1. This delivery also brings the airline's fleet up to date with the most modern narrow-body aircraft of Airbus.

The Civil Aviation Authority of Viet Nam (CAAV) reports that the aviation sector has been showing signs of recovery since March 2022.

By April 2022, the domestic market had returned moderately to pre-pandemic levels. With the surge in travel demand expected for the summer, the domestic market is predicted to grow by over 30 per cent in August, compared to the same period in 2019.

According to CAAV, there are positive signs that the aviation market will fully recover in the second half of 2023, necessitating additional fleets in the immediate period and 2023.

At the beginning of 2023, the total number of aircraft operated by the five domestic airlines in Viet Nam (Vietnam Airlines, Vietjet Air, Pacific Airlines, Bamboo Airways and Vietravel Airlines) was 225. — VNS

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