Domestic air routes recover, international routes lag

 By the end of 2022, domestic air passenger numbers are estimated to be as near as that in 2019, before the start of COVID-19. (Photo: VietnamPlus)

Hanoi (VNA) - The Civil Aviation Authority of Vietnam has continued to propose measures for the Ministry of Transport to remove bottlenecks for the aviation sector, creating momentum for recovery and future development.
 
Reports from the Civil Aviation Authority of Vietnam showed that from February 15, international flights from/to Vietnam have not resumed to pre-COVID-19 level. 
 
In terms of the domestic market, after restrictions on flight frequency were lifted, Vietnamese carriers launched nearly 60 domestic air routes with the average number of daily flights hitting up to 800.
 
The Civil Aviation Authority of Vietnam forecast that this year, the number of passengers will be 42-47 million passengers, posting a year-on-year surge of 170-200 percent but down more than 40 percent compared to that in 2019.
 
In the domestic market, the figure is projected to reach 33-35 million, down 6-10 percent against that in 2019.

VietJet Air is expected to report profits from 2022, whereas Vietnam Airlines, the national airline carrier, should see profits by 2024.
 
The authority said that the COVID-19 pandemic has been brought under control in 2022 and socio-economic activities gradually returned to the new normal.

However, companies will need more time to overcome losses and recover business operations.

So far, Vietnam has resumed air routes with 20 countries and territories including Japan, the Republic of Korea, China, Hong Kong (China), Taiwan (China), Singapore, Thailand, Cambodia, Malaysia, the Philippines, Laos, Qatar, Turkey, the United Arab Emirates (UAE), France, Germany, the UK, Russia, Australia and the US. The international air market is expected to continue to recover as flight frequency rises. 

Nonetheless, international passenger volume may plunge 72-80 percent compared to numbers in 2019, according to leaders of the authorities.
 
The Civil Aviation Authority of Vietnam pointed out that carrier business operations this year will continue to face difficulties because profits primarily come from the international market.
 
Compounding difficulties, fuel prices have been on the rise due to global economic and political uncertainties, putting pressure on airline operating budgets.
 
The authority affirmed that the State has rolled out measures with an aim to address bottlenecks for firms bearing the brunt of COVID-19 via policies to exempt, and reduce taxes and costs; support in regard to interest rates of existing loans by around two percent for the 2022-23 period through the network of commercial banks on loans for enterprises, cooperatives and household businesses, including those operate in the aviation sector.

To further support airlines to surmount difficulties and create a momentum for recovery and future development, the Civil Aviation Authority of Vietnam has asked the Transport Ministry to continue its policies of halving take-off and landing services prices for domestic flights from January 1 to the end of this year.

The continuation of the minimum price of 0 VND for specialised air services named on the list of State pricing frameworks in the period was also proposed.
 
 According to the Civil Aviation Authority of Vietnam, total flights of all Vietnamese airlines plunged to a record low of 1,311 in September 2021 due to strict restrictions on air travel.
 
The figure soared to 25,220 in February 2022, thanks to the easing of air travel constraints./.