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No new airlines until 2012
With increasingly open competition among airlines in Viet Nam, the nation’s airport capacity is falling behind. Viet Nam News reporter Hoang Ha spoke to the deputy head of the Civil Aviation Administration of Viet Nam’s Air Transport Department, Bui Minh Dang, about plans to develop the aviation industry.
What are the plans for developing the aviation sector by 2015 and beyond?
Before the Law on Civil Aviation, Viet Nam had four aviation-related companies: Vietnam Airlines, Jetstar Pacific, Vasco and the Service Flight Corporation of Viet Nam.
Since the law took effect in 2007 and the Government issued Decree No 76/2007/ND-CP, the Ministry of Transport has granted operating licences to three new domestic airlines, VietJet Air, Indochina Airlines and Mekong Aviation. And, last month, the ministry licensed Trai Thien Air Cargo.
With these newly-licensed airlines, the Government ordered the ministry and the department to develop a plan for granting further licences in this field.
The plan has been based on the current situation and demand of growth in the aviation market, development plans of airlines, airports’ capacity to receive and service flights, the ability of authorities in the aviation sector to supervise safety, human resources capacity, policies on granting rights to international carriers, and experiences from neighbouring countries in licensing airlines.
Under the plan, during 2009-11, the State would not give operating licences to any more passenger airlines but would license an additional cargo carrier and an additional aviation service enterprise. During 2012-15, licences would be given to two passenger airlines, for international and domestic routes, one cargo airline and two service companies.
New airlines licensed during 2012-15 would take central Da Nang as their base airport and develop domestic and international routes from and to Da Nang International Airport and other regional airports in provinces that have tourism potential.
After 2015, the State would continue to give permissions to establish more aviation firms based on market demand, operation and expansion of existing firms, civil aviation infrastructure and authorities’ ability to supervise aviation safety.
Why does the temporary suspension of new licences last through 2011?
Under the plan, domestic airlines would have a total of 87 planes in 2010 and 149-159 planes in 2015. There are 20 airports nationwide, including three international airports – Noi Bai in the north, Da Nang in the central region, and Tan Son Nhat in the south.
In addition, those airports, principally Noi Bai and Tan Son Nhat, will be receiving foreign flights from China Southern Airlines, Hong Kong Airlines, Air China, United Airlines, and Shenzen Airlines. The three international airports will be able to handle a total of 66 planes overnight by 2010 and 105 planes by 2015.
In other words, there’s clearly a lack of space to park planes overnight at the international airports. Infrastructure cannot yet meet demand.
How will Viet Nam meet this demand?
Under the plan for development of the aviation industry through 2020 and towards 2030, the capacity of all airports in Viet Nam would be increased four-fold by 2020 and six-seven times by 2030.
By 2020, Viet Nam will have 26 airports, including 10 international airports and 16 domestic airports.
New domestic airlines should not choose Noi Bai and Tan Son Nhat airports as their home base to ease the pressure on capacity at the two airports.
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