Vietnam’s domestic aviation market sees gradual but vigorous post-pandemic recovery. (Photo: VietnamPlus) Hanoi (VNA) - After two years of adverse impacts caused by the COVID-19 pandemic, the domestic aviation industry has been seeing a recovery over the recent months. Positive information from the policy on opening the international market has helped ease the difficulties and created momentum for the recovery and development in the years to come.
However, the escalating fuel prices, worsened by the impact of the conflict between Russia and Ukraine, have made it harder for the recovery of the aviation. These mitigating factors necessitate fundamental solutions from the industry itself and policies from the state.
Statistics from the Civil Aviation Authority of Vietnam (CAAV) revealed that the domestic market may record a gradual recovery despite various difficulties lying ahead. By the end of 2022, the transport of domestic passengers may nearly reach the level of 2019, just before the outbreak of the pandemic. As for the international market, it will take a longer time to recover. It is projected that in 2022, the transportation of foreign customers will fall by 72-80% from the level in 2019.
Release of depressed market
A representative of the authority said in the first six months of 2022, domestic carriers transported 20.1 million passengers, 56.1% higher compared to the same period of 2021. Of this, the number of foreign passengers was 667,000, marking a year-on-year increase of 1,033%.
After the restrictions on the frequency of the domestic aviation activities were removed, Vietnamese aviation firms have re-operated nearly 60 domestic routes, with 700 – 800 flights a day. As for the international market, over the past five months, the number of foreign passengers was 1.3 million, or 10% of the 2019 figure.
The strong recovery of the domestic aviation market is most clearly evidenced by the rapid hikes in fares to major tourist destinations in summer.
A representative of the Vietnam Airlines said there are days when it conducts more than 400 flights, with an occupancy rate of over 80%. By May 2022, it has resumed 32 regular routes, or half of the figure in 2019.
It is expected that by November next year, all the international routes will resume to the level in 2019, the official said.
CAAV General Director Dinh Viet Thang held that there were signs of recovery in Vietnam’s aviation market, especially the domestic one. The recovery of the market in the recent months sends out a positive sign of the operation of the industry, helping ease the difficulties and create momentum for the recovery and development in the years to come.
Avoid missteps
The CAAV forecast that in 2022, the number of passengers transported will be 42-47 million, increasing from 170-200% over the figure of last year but decreasing over 40% compared to that in 2019.
The development prospects of Vietnam’s aviation in this year and the time to come are obvious as many routes have been resumed after the COVID-19 pandemic. (Photo: VietnamPlus) Tran Tho Dat, former Rector of the National University of Economics and member of the economic advisory group to the Prime Minister, held that the resumption of international routes and tourism recovery have facilitated Vietnam’s aviation in a gradual normalisation of operations. It is important not to miss a step in the fierce competition with regional and world aviation firms.
According to Bui Doan Ne, Secretary General of the Vietnam Aviation Businesses’ Association, the explosion in the aviation demand after the social distancing period necessitated by the pandemic fight can help Vietnam’s aviation firms intensify their operation, precipitation rapid recovery and development.
However, the official also expressed concern as most forecasts by international organisations hold the global economy will rebound, but inflation is adversely impacting travel demand, considerably reducing tourism and travel./.
