The local aviation market is booming as several new airlines have entered the market, provoking concern over how major airports in the country can handle sudden rises in passengers and aircraft movements.

Vietnam’s airlines have been buying more aircraft, expanding fleets and opening new air routes in recent years at a rapid pace.

VietNamNet Bridge - Vietnam’s jet fuel demand is predicted to soar this year with the continued hot development of the travel industry. 

VietNamNet Bridge - Both state-owned and private businesses are eyeing aviation infrastructure projects, which are believed to bring high profits thanks to increasingly high travel demand.

 The Ministry of Transport held a press briefing on April 6 to clear up some questions around the granting of an aviation transport business licence for Vietstar Airlines to operate as a passenger carrier.

VietNamNet Bridge - The Ministry of Transport (MoT) has asked the Prime Minister’s permission to grant an air transport license to Vietstar Airlines Multirole Corporation (Vietstar Airlines).

 VietNamNet Bridge - To gain market dominance, domestic airlines have to compete on fares but they also have to face extreme problem of profit margins.

Growing demand for air travel during national holidays, especially the lunar New Year (Tet) has heated up competition in Vietnam’s aviation sector.

 VietNamNet Bridge – The rapid growth of the aviation market makes better air transport infrastructure and greater financing and knowhow imperative.

VietNamNet Bridge - The Vietnamese aviation market is witnessing stiff competition between Vietnam Airlines, the national flag air carrier, and Vietjet Air, the emerging player. Jetstar Pacific is also a formidable rival.

 VietNamNet Bridge – Jetstar Pacific, the first low-cost airline in Vietnam, will split from Vietnam Airlines, with the State still holding the controlling stake after equitization, a step of the plan to create a competitive aviation market.

 VietNamNet Bridge – Injecting money into airlines is not the choice of short- term investors, but airlines’ shares are very attractive in the eyes of bankers, even though the ratio of profit of revenue is not high.

 VietNamNet Bridge - Low-cost carriers dominate the aviation industry in Southeast Asia, such as in Malaysia and Singapore, but the playing field is still not level for budget airlines in Vietnam.

 VietNamNet Bridge – With their low-airfare policies, air carriers from the Middle East are proving to be formidable rivals to Air France, Vietnam Airlines and other Asian airlines in the Vietnamese market.

 VietNamNet Bridge – The aviation market is at the development stage when the winners are the ones who have lower management costs. Budget airlines have gained the upper hand.

The International Air Transport Association (IATA) believes that Vietnam would be the third fastest growing market in terms of international passenger and cargo transport and the second fastest in domestic passenger transport.

Analysts now bet on the fate of Air Mekong after hearing that the private airline cannot pay for fuel. Pacific Airlines still has reported a loss for the last five consecutive years of operation.